Setting Investment Goals

Clear goals are the foundation of every successful portfolio. Without a goal, you have no way to measure success or choose the right investments.

Short-term (under 2 years) — Emergency fund, holiday savings, gadget purchase. Best suited to money market funds and T-bills because you cannot afford to lose capital.
Medium-term (2-5 years) — House deposit, car purchase, wedding fund. A mix of bonds and conservative equities works well here.
Long-term (5+ years) — Retirement, children's education, wealth building. You can afford to hold more equities because you have time to ride out market downturns.

Apply the SMART framework to your investment goals:

Specific — "I want to accumulate KES 2 million for a house deposit" not "I want to make money"
Measurable — Track your progress monthly on Stockr
Achievable — Based on realistic returns of 10-15% annually on equities
Relevant — The goal matters to your life plan
Time-bound — "By December 2030" gives you a deadline to work towards

Once you have defined your goals, align your portfolio accordingly:

Retirement in 25 years — 70-80% equities, 10-20% bonds, 10% money market
House deposit in 3 years — 20-30% equities, 40-50% bonds, 20-30% money market
Emergency fund (ongoing) — 100% money market fund for liquidity

Your portfolio should serve your life, not the other way around. Start with your goals, then choose the investments that match.