2) Determine Financial Goals. Experts say when you have identified your goals;
you’re most likely to achieve them. Highlighting the financial goals serves as an
important aspect of financial planning. Subjected to what phase in life you have
reached, these goals could be:
• Get married and initiate a family
• Purchase or pay off a property
• Ensure your children get a good education
• Make your reserves and investments tax proficient
• Get retirement with enough income on hands to enjoy life ahead
The sole purpose of this step is to differentiate your needs from your wants. Apart
from these, the goals or objectives may range from spending your entire income into
developing a long-lasting investment program for future financial security.
However, you must select which goals you need to pursue.
3) Identify Alternatives for Investment. After a thorough understanding of your
financial needs has been taken and all the appropriate financial goals have been
cemented down, the next thing is the investment alternatives or specific
recommendations from your financial planner.
By taking a good look at your short-, medium- and long-term goals, an integrated
investment strategy would be developed based on your set requirements.
Furthermore, the objectives would be looked upon again and it will be analyzed how
far you are down the road to achieving your short- and long-term financial goals.
Considering your timeframe, cash flow, risk tolerance, current insurance coverage,
tax strategies and investment goals, a range of ideas and financial planning
alternatives would be presented to determine which one suits you the best. This will
help you produce more actual and satisfying decisions.
