Goal Setting & Financial Planning
When you make a financial plan, you identify the financial goals that are important to you, your best estimate of what they will cost, your time frame for achieving them and the types of investments that may be the most appropriate for accumulating the money you need.
Paying for the expenses you anticipate in the next few years requires a cautious plan. You should focus on minimizing the risk to your assets and preserving your wealth. Make sure the money you’ll need in the near future is both secure and accessible.
Common short-term goals:
Possible investments for achieving short-term goals:
Think about the next ten years, concentrating on what you hope to accomplish and the expenses you anticipate these goals will cost. Planning for mid-term goals means carefully balancing investment growth and financial security.
Common mid-term goals:
Possible investments for achieving mid-term goals:
It is never too early to begin financial planning for the major financial goals you want to achieve more than ten years down the road. Realizing your hopes and dreams for the future calls for a persistent and growth-oriented investment strategy.
Common long-term goals:
Possible vehicles for achieving long-term goals:
Re-evaluating Your Goals Over Time
Your financial goals will likely change as your financial circumstances change. That’s why it is important to reassess your goals periodically — and at least once a year. As you do your annual financial check-up, ask yourself the following questions and be prepared to make any changes you think are needed.
List Your Financial Goals
Make a list of your primary short-, mid- and long-term financial goals, the approximate date when you hope to achieve them, how much you have saved already, approximately how much you’ll need and where your savings are. This list can serve as benchmark for evaluating your progress. Remember that it’s perfectly normal for your goals to change as your life changes.
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This Article is published by Simon sharing information regarding goal settinf and financial planning.