Do You Know How Wealthy You Can Be in a Decade?
Have you really defined where you want to be financially in 10 years? Maybe you’ve purchased a good insurance policy, or you’re doing your best to pay down debt and save money. That’s great; but it’s not really a plan. If you’re committed to creating a prosperous future, with all the advantages it can bring, then you must do long-term planning.
Take a moment to imagine it: where you want to be in 10 years; For example, if you want to retire with $1 million in assets, then do a projection: how much you will save; what investment vehicles you need to have in place; and how your money can grow for you in a decade. Now, create a document to plan what you want to achieve, and review it regularly.
The advantages of this exercise are numerous. Your financial goals will give you focus; a way to track your progress; and the motivation to keep going.
Every year, you will know if you are heading in the right direction. Do you need to save more, or add different types of investments into your mix?
Without goals, how will you know?
Watching firm proof of your financial success is a great motivator. It helps you stay disciplined and committed.
Your Financial Advisor can help you identify mutual funds where the manager is producing good returns. Nobody knows the future, but if you base your projections on historical returns, you know there’s a strong likelihood that same manager will produce similar results in in the future.
Strategically combining a couple of funds together will improve your chances while reducing your risk. Develop a good mix of growth-oriented funds and conservative ones. It’s up to you. You choose what performance you desire and the level of risk you’re comfortable with. A conservative portfolio will grow around 5% to 6% per year.
Review your plan regularly. At least once a year; every quarter is better; monthly is ideal. Most people don’t do this.
You do this. Set your goals, track them, and enjoy the satisfaction of watching your wealth grow. Ask your Financial Advisor for help developing an investment strategy to achieve your goals.