Do you have a financial plan? What is a financial plan? We can tell you what is not a financial plan… A plan is not a:
- a portfolio
- an asset allocation
- a personal financial statement
- a budget
- a savings account
- an employer retirement plan
If you are accumulating money for a later date, here’s what we would want to know:
- When do need the money?
- How much money do you need?
- How much are you starting with?
- How much can you save per month?
- What return do you expect your money to earn?
Whether you are planning a vacation, a party, or a retirement, the same six questions apply. Which questions do people like to talk about? Of course, it’s number 5. By the way number 5 is the least controllable on the list. We suggest guessing low on 5 so you’ll be pleasantly surprised.
Let’s make a retirement plan. Keep it simple, fill in the blanks here and you are all set.
I am ______ years old. I want to retire at age ____. To do this I need $________________ by ______ (Date). Today, I have $_____________ saved for retirement. I plan on saving $__________ per month. I expect my retirement funds to earn ___%.
It’s just a story problem. Pretty simple… but not easy. There are traps at each blank. Can you confidently fill in the blanks?
Our experience is not many people can answer these questions. But if you can, we think there is a good chance you’ll get there. If you can’t fill in the blanks, it’s OK. That why we were sent into the world.
This blog is provided by Windward Private Wealth Management Inc. (“Windward” or the “Firm”) for informational purposes only. Investing involves the risk of loss and investors should be prepared to bear potential losses. No portion of this blog is to be construed as a solicitation to buy or sell a security or the provision of personalized investment, tax or legal advice. Certain information contained in the individual blog posts will be derived from sources that Windward believes to be reliable; however, the Firm does not guarantee the accuracy or timeliness of such information and assumes no liability for any resulting damages.
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