Investing is done for a variety of reasons, with a variety of aims and motivations. Some people have a short-term perspective, whereas others have a long-term perspective. Some people are preparing for retirement or attempting to protect their possessions throughout their golden years. Many parents desire to send their children to college. Others are merely looking to increase their net worth. Who wouldn't want to cut their tax bill as much as possible?

Having a strategy, as with so much else in life, is critical to getting the desired result from your investments. You could take an impromptu approach, making decisions on the spur of the moment, but having a plan will help you achieve your objectives more effectively.