The first step in creating an investment plan is to take stock of your current personal financial situation. Make a listing of your assets. This list should include your current financial assets (such as stocks and bonds), cash and cash equivalents (such as CDs), investment real estate and investment collectibles (coins, stamps, etc.). But because the type of investments you should make in the future is also influenced by property holdings that are outside the sphere of what are usually viewed as investments, you should also list your personal assets (such as cars and furniture).
In much the same vein, a picture of your asset holdings would be incomplete without a listing of your liabilities, such as mortgages, auto loans, and personal charge accounts.
You may wish to see examples of how to list assets and liabilities, which are contained in our more general discussion of creating a wealth building plan. Once you have made your asset and liability inventory, the next step in the investment planning process is to identify your investment goals.