Success doesn’t happen by accident. It takes planning and knowing where you are heading as well as the path to get there. It takes calculating and anticipating any roadblocks ahead.
Benjamin Franklin said it best, “If you fail to plan, you are planning to fail.”
One of the most crucial question investors often ignore as they navigate their financial health is an assessment of their risk appetite and how it changes as they encounter different stages of their lives such as (Having a baby, buying a house, losing a parent, approaching retirement, etc.).
The hunt to seek alpha and generate higher returns often clouds investors focus away from their financial plan.
There are a few steps that can help investors when building a long-term Financial Plan:
1. Ensure that you and your family do not outlive your money by anticipating your cashflow needs as you age.
2. Create an Emergency Fund (money market, bank or savings account, etc.) with 6-12 months of living expenses.
3. From a macro perspective, check that your investments are aligned with the stage of life you are in (Middle age, retirement age), etc. Adjust accordingly if need be.
Please let us know if you want to discuss how financial planning can benefit you and ensure your are on a secure path.
