Have you actually sat down and written out your goals for your financial future? If you have a significant other, have you done this separately and then discussed them to develop goals as a couple? I encourage you to do so. It is an interesting exercise, and you may learn something about yourself or each other.
Goals are not just long-term. Consider the short-term to be within the next year or two. What purchases are you planning? What activities are happening within your family that may call on your savings? How about the mid-term of three to five years, or even longer? Is there a need for a new vehicle, a return to school, a new residence, or a major trip? Beyond this, looking at the long-term, you still want to map out potential major purchases that you have in mind, and you start looking forward to the retirement years. What does retirement look like to you? A common question I like to ask is… at what age you wish to be able to decide if you want to go to work or not? Finally, for your estate planning, do you want your assets to go to your beneficiaries or to the government?
It is only once you have identified goals that you can truly look at your true investment and insurance needs. Your financial advisor should be prepared to spend time addressing this with you in order that a comprehensive plan for your future may be developed.
“Identify Goals” is my third tip in my 10 Tips for Women about Money.
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