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Before you draw up your plan for investment, it will be necessary to consider carefully the objectives you want to achieve. Let us suppose that conservation of principal is a "must"; then what else may be expected? Much will depend upon a proper choicE among these three:

(a) regular income; (b) income plus capital appreciation; (c) capital appreciation alone. Let us see how the selection of one of these will depend upon the personal needs of the investor. John Doe is fifty-three years of age. He has worked hard all his life, and it is only after reaching middle age, with his children married and "on their own," that he has managed to accumulate extra funds for investment purposes. His health is good, but he plans to retire at the age of sixty, and for this reason alone he is interested in security of principal coupled with a steady income upon which he can depend. Are bonds for him?

Richard Roe is a much younger person (thirty-three) and has a wife and two small children. He carries adequate life insurance and is buying a home. Both he and his wife take the "long view" of their future and wish to invest in something that may show a considerable increase in invested principal over the years, income being secondary. Are common stocks for them?