Most of us are very mindful about setting goals for the important areas of our lives. We establish them for our careers, business activities, education, families, weight control, and exercise to name just a few.
Why should it be any different for investing? To not set investment goals borders on irresponsibility and may lead to highly undesirable financial outcomes!
Here’s the good news: it’s not as complicated as it sounds. There are essentially three broad investment goals. They are:
- People are loath to deplete their money prior to death!
- People want to have enough money to support their desired lifestyles…throughout their entire lives.
- If possible and beyond their lifetimes, people want to leave a lasting financial legacy to their loved ones and/or communities.
With the exception of people who sport bumper stickers that read, “I plan to spend my children’s inheritance,” most of us are concerned with all three goals.
That said, your goals are strongly related to the level of risk you are willing to tolerate in order to achieve them. Where are you on the conservative – aggressive continuum? Is that a place that will get you where you need to be?
Not sure? An experienced Wealth Manager can help you develop a financial plan that will work in concert with your investments to achieve these goals.
It may be one of the most important conversations you will ever have!