SUCCESSFUL INVESTORS SET GOALS
Think about the areas in your life where you feel like you have achieved some level of success. Now think about what it took for you to succeed. Chances are you put in a lot of work, you sacrificed in other areas and you made some adjustments along the way. But before you did any of those things, you had to decide what you wanted to achieve. You set a goal.
Goal setting is the cornerstone of success in any area of life, but it’s particularly important when it comes to investing. That’s why, as advisors, we spend so much time discussing your goals for the different phases of your life.
When thinking about investing, your goals can be broken down into two categories:
- Savings Rate — How much you’re willing to save and invest plays a huge role in the size of the portfolio you’ll have in the future.
- Risk Exposure — Markets go up and markets go down. Establishing your tolerance for risk affects your expected returns.
- Retirement — When do you want to stop working? What kind of lifestyle do you want to have in your golden years?
- Estate Planning — Do you want to leave a financial legacy to your heirs or a cause? If so, how much?
- College Planning — Are you planning to pay for your kids’ tuition? What kind of school do you expect them to attend? Do you want to cover it all or just some of it?
Setting goals for what you want to achieve and what you’re willing to do to achieve it is the surest way to success. Whether you’re planning for college, retirement or something in between, a trusted advisor can help you get there.