“Household investment”
 An amount of money that is invested in something by a person, rather than by a company or organization, or these investments as a whole.
Ways  to Prepare a Personal Investment Plan

1: Know Yourself

2: Understand Risk

3: Stay Diversified

4: Invest Low-Cost and Tax-Efficiently

5: Invest for the Long Run

6: Use Caution if You Are Investing in Individual Assets

7: Monitor Portfolio Performance Against Benchmarks

8: Do Not Waste Too Much Time and Energy Trying to Beat the Market

9: Invest Only with High-Quality, Licensed, Reputable People and Institutions

10: Develop a Good Investment Plan and Follow It Closely

                            Your Investment Plan is divided into four separate categories    

 1. Risk and return objectivesThis describes your expectations for returns on your investments. These expectations will, to a large extent, determine your asset-allocation decisions.

 In other words, these expectations will determine how you will distribute your investments among different asset classes.

Expected returns: You should not invest without specific goals in mind. For your first goal, you should decide what return you expect your total portfolio to make over a specific time period.
 You cannot know with certainty what the actual returns will be before you invest.

However, you can estimate an expected return, or a goal you hope to achieve during a certain period of time (such as a week, a month, or a year).

 2. Investment guidelines and constraints:

Your investment guidelines are the road map for how you will invest over your lifetime. These guidelines and constraints explain the ways in which you will invest differently at different phases in your life.

 Generally, most individuals have three stages of their financial life cycle. Most investors who are younger than age 55 are in stage one, or capital accumulation and growth.

Your Investment Plan should address a number of important constraints: liquidity, investment horizon, tax considerations, and any special needs.

Liquidity: is the speed and ease with which an asset can be converted into cash. As you create your plan, consider how important it is for you to have the option of turning your assets into cash quickly.

Investment Horizon: is the amount of time you are planning to keep an asset to save for a particular purchase.
Consider how soon you will need to use the funds from a particular investment.

Tax considerations: take into account your current tax bracket and your current tax rates. Consider your tax position:
are tax-free or tax-deferred investments more advantageous than taxable investments

 3. Investment policy

Your Investment Plan should includes these investment policies:

1 Acceptable and unacceptable asset classes

2 Investment benchmarks

3 Asset allocation

4 Investment strategy

5 Funding strategy

6 New investment strategy

 4. Portfolio monitoring, reevaluation, and rebalancing:

The final part of your Investment Plan is describing how you will monitor, reevaluate, and balance your portfolio. Monitor your performance.

Compare the performance of each of your assets against benchmarks on a monthly, quarterly, and annual basis.

How did your assets perform? Which assets had returns that were greater than their benchmarks, and which assets had returns that were less than their benchmarks?

Setting goals is not a one-time event. You should continually review and reevaluate your goals. Has your situation in life changed? Which goals need to be changed to accommodate your situation