I am presently working $120,000 a month. This may continue for the next 24 months due to the fact that I am on contract.

What I would like to know is, what kind of a long-term investment would be good that I can gain from, for the next five to six years, that could cover school fees and maintain my family? How much money would such an investment cost, and this has to do with shares and so forth?

Would it be wise at this time to purchase a pickup truck in the ball park of $1.2 million to $1.7 million? At present, I am debt free. I just have the monthly utility bills, school fees, etc.

- Mike

PFA: Your case is similar to many that come to me, but I am unable to give a meaningful response due to the omission of vital information. Nonetheless, I will do what I can to help you identify what to do to resolve your issues.

In giving your personal and family profile, you have said you are married, you and your wife are 42 years old, you are employed on a contract that will expire in two years and you earn $120,000 per month.

But is your wife employed and, if so, at what salary? How old is your son and what are the plans for him? How much does it cost to run your house on a monthly basis? What are the plans for your daughter?

savings or investments?

You have said nothing about the state of your finances. Does your family have any savings or investments? Of course, that is not to say I would expect you to bare all to be published in the national paper. It is very difficult to give the kind of advice you require without much information.

One positive about your situation is that you are debt free.

This will allow you some flexibility in how you go forward but then I do not know what capacity you have to incur debt.

If your interest is in generating investment income to meet the current needs of your family, it is vital to know how much it costs to run your family.

With that information and some idea of investment returns, it becomes a little easier to determine how much you need to invest for that purpose.

This is not a normal course though. Investment income is ideally suited for long-term goals and not for current expenses.

To what use would you put the pickup truck? How would you fund its purchase? If you plan to use debt, would you be able to use it in a way to service the debt and have enough to contribute to the welfare of your family?

In considering investments, why do stocks appeal to you? Are you prepared to risk losing some of your capital?

Will you be making your own decisions or will you depend on others to guide you? Consider how long you are prepared to wait for those investments to give you a good return.

secondary source of income

It seems that you are operating on a worst-case scenario. Either you are not keen to work for others again or you doubt you will be able to gain employment when your current contract ends, or is it that you want to have a secondary source of income?

I suggest you leave open the option of taking another job when your contract expires.

Paying for your child's education and for the day-to-day cost of running your house are legitimate goals but you need to consider putting aside funds for longer-term goals, such as retirement, especially if you plan to continue to work on contract or as a self-employed person.

The earlier you start the better.

Is there a particular reason why you have singled out the next five to six years to earn investment income to cover school fees and maintain your family? What are your plans beyond that time?

Be positive about the future. Work out your plans carefully.

Get a feel about what they will cost. Take full account of all your financial resources and if you need help to chart your future after that, seek advice.

For free money management advice, email: finviser.jm@gmail.com.