No two people have the same financial goals, income, or life plans—so why should their investment strategies be the same?
That’s the idea behind personalized investment strategies. Instead of following a generic plan or copying what your friend is doing, a personalized strategy is built just for you. It’s based on your goals, risk tolerance, timeline, and personal situation.
In this guide, we’ll walk you through the steps to create a personalized investment strategy that actually works for you—not someone else.
Why Go Personalized?
Personalized investment strategies are all about making your money work smarter—not just harder.
When your investments align with your real-life goals and needs, you’re more likely to stay on track, feel confident about your decisions, and reach your milestones.
Plus, personalization can help reduce stress. You won’t be chasing market trends or second-guessing yourself every time the news talks about a crash.
Step 1: Know Your Goals
The first step is the most important—know what you're investing for.
Everyone has different reasons to invest:
Saving for retirement
Buying a home
Starting a business
Creating an emergency fund
Building generational wealth
Funding a child’s education
Get clear on what your goals are and when you want to reach them. A goal with a 30-year timeline (like retirement) requires a totally different strategy than one with a 3-year horizon (like buying a house).
Write your goals down. Be specific. Instead of saying “I want to save money,” say “I want to save $50,000 for a down payment in 5 years.”
Step 2: Understand Your Financial Situation
Before you invest, you need a full picture of your current finances.
Ask yourself:
How much money do I have saved?
What’s my income and monthly budget?
Do I have high-interest debt?
What’s my credit score?
Do I have an emergency fund?
A personalized investment strategy needs to be realistic. If you're still paying off credit card debt, for example, it might be smarter to tackle that first before making big investments.
Step 3: Know Your Risk Tolerance
Everyone reacts differently to risk.
Some people can handle ups and downs in the market without flinching. Others panic at the first sign of red. There’s no right or wrong—just what’s right for you.
Ask yourself:
How would I feel if my portfolio dropped by 10%?
Could I stay invested during a market downturn?
Am I more focused on growth or safety?
The answers will help shape your strategy. If you’re risk-averse, your portfolio might lean more toward bonds or stable dividend stocks. If you’re comfortable with risk, you might go heavier on equities or emerging markets.
At Rutherford Investment Management, we always take your comfort level into account when creating strategies that truly reflect your values and risk appetite.
Step 4: Choose the Right Investment Vehicles
Now that you know your goals and risk profile, it’s time to pick your tools.
There are many types of investments to choose from:
Stocks: Higher potential returns, higher risk
Bonds: Lower risk, steady income
Mutual Funds: Pooled investment with professional management
ETFs: Like mutual funds, but traded like stocks
Real Estate: Great for long-term growth or income
REITs: Real estate investments without having to own property
Index Funds: Low-cost way to mirror market performance
Each type has its pros and cons. A personalized strategy might use a mix of these depending on your goals, timeline, and risk level.
Step 5: Diversify Your Portfolio
Don’t put all your eggs in one basket.
Diversification spreads your risk across different asset classes, sectors, and even geographic regions. That way, if one investment underperforms, others can help balance things out.
A solid personalized investment strategy might include:
U.S. and international stocks
Corporate and government bonds
Real estate or REITs
Short-term cash or equivalents
Think of it like a recipe—different ingredients combine to make something balanced and powerful.
Step 6: Build a Timeline
Your time horizon matters. A lot.
If you’re saving for something 20 years away, you can afford more short-term risk for higher long-term gains. If your goal is only a few years away, you’ll want to protect your capital.
Split your goals into:
Short-term (1–3 years)
Medium-term (3–10 years)
Long-term (10+ years)
Each category should have its own investment strategy. For example, short-term goals might use low-risk investments, while long-term goals could lean more into growth stocks.
Step 7: Make It Tax-Efficient
Smart investing isn’t just about growing your money—it’s also about keeping more of it.
That’s where tax planning comes in.
You might consider:
Tax-advantaged accounts (like IRAs, RRSPs, or 401(k)s)
Tax-efficient funds that limit capital gains
Tax-loss harvesting to offset gains
Placing high-yield assets in tax-deferred accounts
A personalized strategy should always factor in your tax situation. This is especially important as your portfolio grows.
Step 8: Monitor and Adjust Regularly
Your life will change—and so should your strategy.
Get in the habit of reviewing your investment plan at least once a year, or whenever there’s a big life event (like a new job, baby, marriage, or major purchase).
Rebalancing your portfolio helps keep your asset mix in line with your original plan. For example, if stocks perform really well one year, your portfolio might shift too far into equities. Rebalancing brings it back to your target allocation.
At Rutherford Investment Management, we schedule regular check-ins with clients to make sure their personalized strategy still fits their life and goals.
Step 9: Stay Calm When Markets Get Rough
Markets go up and down. That’s normal.
What’s not helpful is panic-selling every time there’s a dip.
When you have a personalized investment strategy, you’ve already planned for volatility. You don’t need to make knee-jerk reactions based on fear.
In fact, some of the best opportunities come during market downturns—if you stay calm and stick to your plan.
Step 10: Work With a Trusted Advisor
You don’t have to do this alone.
A professional advisor can help you build a personalized investment strategy that truly fits your needs. They bring experience, objectivity, and a broader view of the financial world.
At Rutherford Investment Management, we believe in clear communication, honest advice, and strategies tailored to your life—not just your portfolio.
We work with individuals and families to create smart, flexible plans that grow with them over time.
Final Thoughts
Personalized investment strategies aren’t just a luxury—they’re a necessity in today’s complex financial world.
By taking the time to understand your goals, risk tolerance, and life situation, you can create a plan that makes sense for you. Not someone on the internet. Not your coworker. You.
Start small if you need to. Ask questions. Revisit your plan often. And don’t be afraid to ask for help.
