Assume you have reached a point in your life where you have a budget, your cash inflows and outflows are matched to the point where your bills are getting paid; you have an emergency fund to cover contingencies; and your overall needs of your family are being met. Over the years, you have accumulated $100,000 that is currently sitting in a savings account earning very little interest. You have determined it is time to begin a structured approach to investing and need to allocate this $100,000 lump sum. You have also determined you may have $1,000 a month additional to invest. In order to establish how you will invest the $100,000, and in what terms, you must address the following:
 
1. What is the goal? (The purpose for this money ultimately)

2. What is your time horizon? (When will you need to access these funds)

3. What is your risk tolerance? (Where do you fall on the risk continuum from conservative>some risk>above average risk>aggressive)