It is impossible to make sound financial decisions without a plan. An investment plan will reflect financial goals, personal circumstances, and anticipate future needs for income. When you develop your plan, you will want to consider your current age, the number of years until you plan to retire, current and anticipated income, provisions for emergencies, education of your children, care for aging family members, your investment goals, and your tolerance for risk. Use the My Investment Goals worksheet to finalize your plans.

Investment planning is more than a tool to ensure financial survival. It is essential to build and preserve wealth. Before taking action on your investment plan, be sure that the following are in place as a financially secure base on which to build your investment:

Liquidity

• You have an emergency savings fund of easily accessible cash, earning interest, to cover three to six months living expenses.

• You have adequate insurance -- life, health, homeowner's, disability, automobile, and comprehensive/liability -- to protect your assets.

• You are managing your credit cards and loans carefully and living within your means. Less than 20 percent of your income goes for credit payments, other than your mortgage, and you pay each card in full, if possible, each month. It doesn't make sense to pay 18 percent interest on a credit card and receive only 6 percent on your investments.

• You consider investing for your future a priority and are willing to make sacrifices to reach your goals. You are willing to pay yourself first and put some wants on hold.

• You are participating in a tax-deferred savings pension plan -- 401(k), 403(b), Keogh, SEP or annuity -- where you work.

• If you do not have a deferred savings pension plan available (or even if you do) you contribute the full $2,000 to an IRA each year.

• Your tax-sheltered retirement plan focuses on investments that produce returns that would otherwise be taxable, and you reinvest the dividends to defer taxes. This is no place for low- or no-dividend investments or ones that are already tax-deferred.