Your Why and Determining Your Financial Goals

[Jorge Abreu]

👀 Traditionally, investors have focused on generating the highest possible returns or beating the market, while staying within their comfort zones in terms of risk. My preference to wealth management is goal-based investing, which emphasizes investing with the objective of reaching specific life goals.

Whichever approach you prefer, the important thing is to do something, and not just leave your financial health to chance‼

Are you investing to: Build a nest egg for retirement? Buy a vacation home? Create an income stream during retirement? Start a new business? Leave a financial legacy to your family? Do all of these?

👉 Arrange your goals by the time horizon for achieving them. Do some research and take advantage of financial and retirement calculators available to put a value/cost on each of your goals.

💥 After you define your goals and figure out how much money you need and when, the next step is to reverse engineer an investment strategy that will make it happen. An investment strategy is basically a plan of attack that guides your decisions based on your goals, risk tolerance, and future needs for capital. Some keys to making a sound investment strategy:

📌 Start now. Seriously. Stop putting it off

📌 Know what your looking for so that you are anchored by the must-haves and not distracted by the nice-to-haves

📌 Take advantage of the power of compounding

📌 Think twice before investing in anything with high costs/fees

📌 Diversify your investments.

👉 I hope you find these tips helpful!! Good luck!!🙌