Setting financial goals is by far the most important part of the planning process! You must establish and clearly define attainable goals that you can feel comfortable with and endorse in a heartfelt way. Vague, overly aggressive estimates of what you would like to achieve, as well as lack of motivation will only lead to procrastination, inactivity, and, ultimately, failure to attain your true goals. The acronym S.M.A.R.T. applies dramatically when thinking of goal plannng. The "S" stands for specific; "M" for measurable; "A" for achievable"; "R" for realistic and finally "T" for time bounded. Your goal has to stand up to all five of these or it is not a goal.... just a dream or a wish!

 

Some examples of common financial goals that many people wish to achieve include are reducing debts-including their mortgage, funding children's college education, home purchase or renovations and financial security/retirement. Finally, in addition to developing clear objectives, it is equally important to prioritise your financial goals by relative importance and time horizon to achieve them.Whether you have short-term goals like a home deposit, saving for your children's education or long-term goals such as retirement, it pays to have a plan that takes advantage of the latest financial trends. Most experienced financial planners have an extensive range of sophisticated strategies to help you do achieve your goals.
 

Key factors to consider when constructing your investment goals and objectives are:

-time (includes both investment and individual time horizon);

-risk (the uncertainty of loss or the possibility of a misfortune occurring)

-return (what do you want to receive from each investment - income or capital appreciation or a little of both)

-inflation (a dollar today is generally not worth a dollar tomorrow - your returns are positive provided the net return from an investment is greater than the prevailing inflation rate

-tax (what you earn and what you keep is important - the investment and structures you may adopt must be tax efficient)

 

Reaching your financial goals starts with a thorough understanding of your needs and goals. A financial adviser will work closely with you to develop a financial plan that clearly:

-summarises your current financial position

-clarifies your future needs

-identifies opportunities

-sets a realistic investment strategy consistent with your goals

-manages risk

-monitors your progress

-measures success

 

Establish what your goals are. They may be short or long term. Some common goals are:

Building savings for emergencies;

Paying down debts including your mortgage;

Saving for a vacation;

Buying or renovating a home;

Planning for retirement;

Protecting lifestyle;

Transferring wealth to future generations

 

The Debt Coach team has created a two page goal planning form in PDF format that many members have found very useful to complete together with their partner. We encourage you to download the form here