Your Financial Goals

Establishing what you want your money to accomplish helps determine the right investment strategy for you. Fisher Investments has the information you’ll need to properly research and set goals that will help build your financial future.

The Importance of Clear Financial Goals

Figuring out your financial goals may be one of the most important things you can do to help achieve long-term investing success. When you’re young, your financial goals are usually simple and short term: establishing an emergency fund, starting your retirement saving, buying a new car or accumulating a down payment for your first home. But, as you become more financially stable, your goals should reflect the increasing complexity of responsibly managing your wealth.

Where to Begin

Identify Your Goals

Setting your financial goals can be challenging, and most people don’t know where to start. Financial goals don’t just have to be about saving money. They can be about anything tied to your finances. Drafting a will, assigning account beneficiaries, selecting a power of attorney in the event you become incapacitated, and establishing trusts can all be financial goals—and are all things worth doing! In many cases, common financial or investment goals may include:

three financial goals graph

Goal 1: Avoid Running Out of Money

For some investors, their primary goal is avoiding poverty in old age. While some believe the key to avoid running out of money is to invest in low-volatility investments (such as bonds), this approach isn’t always prudent and could be detrimental.

Goal 2: Maintain or Improve Lifestyle

If you want to ensure your preretirement lifestyle continues or improves throughout retirement, then you’ll want to maintain or grow your purchasing power. But inflation will have an impact, so it’s important to consider this is in your retirement plan.

Goal 3: Increase Wealth

If you’re able to enjoy your desired retirement lifestyle with no fear of depleting your assets during your lifetime, it’s possible you wish to grow your investments over a long period—often beyond your life expectancy. Common goals are to leave a legacy for heirs or a charity.

By listing out your personal finance objectives, you can hold yourself accountable and increase the odds you achieve them. There’s a reason many of us still make grocery lists! It reduces the chance we forget something critical.

Identify Your Investment Time Horizon

Once you’ve identified your financial goals, it is important to determine the length of time you need your money to last so you can achieve them—also known as your “investment time horizon.” For longer-term goals, this may be your life expectancy or even beyond. Shorter-term goals may only require a specific number of years; for example, setting aside $200 per month for five years to pay for a kitchen renovation.

Assess Your Financial Picture

Another important part of achieving your financial goals is having a clear understanding of your current and expected future financial situation. For example, you should document your current income, expenses, investments, debts and savings. Likewise, you should identify future cash-flow needs required to help you maintain a comfortable lifestyle in retirement.

Achieving your financial goals isn’t easy, especially if you are trying to do it alone. Fisher Investments can help you achieve your long-term financial goals. We offer our clients tailored portfolio-management services and the right advice to help them stay on track.

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