Review your needs and set goals

Take the time to think about what you really want from your investments and set your goals.

Goals based investing

A financial review is a great way to take a fresh look at your finances and plan for the journey ahead. More importantly, it enables you to talk through your long-term financial objectives and discuss with us a way forward to deliver your plan and achieve them. It’s important to know why you are investing and what you really want from your investments.

Goals-based investing is an approach which aims to help people meet their personal and lifestyle goals, whatever they may be. If you do not know where you are going, how will you know when you get there? This is very true about financial goals.

Goals should be clear, concise, detailed and written down.

You need to set financial goals to help you make wise financial decisions, and also as a reward for your efforts. Goals should be clear, concise, detailed and written down. Unwritten goals are just wishes.

Goals might be to maintain your same standard of living (planning for retirement, or in the case of an entrepreneur, anticipating the sale of his business), buying property, paying for children or grandchildren’s education, passing on a proportion of your wealth, making charitable donations, covering unplanned financial needs, etc. Each of these goals will make up a specific portfolio.

But in order to achieve all of your goals, you will need a plan. Starting from assets you already have available; you will need to determine how much more you need to accumulate and when you will need it.

Don’t neglect to consider that the price of your goal items might actually increase as well. Depending upon how you invest your savings over time, you might receive interest, dividends or capital gains to help you along – you should consider this as well.

Part of your goal setting might be to make a positive difference, you might be interested to know how you, your money and the things you care about could all benefit from sustainable or ethical investing . Once a niche approach thought to come at the expense of returns, Environmental, Social and Governance (ESG)strategies have proven that they can be market beating.

Your goals should be:

Setting realistic goals

Each goal will be assigned an amount, an investment period, a level of risk and an order of priority. Do you have the means to make additional investments necessary to accumulate the required assets to achieve your goals? Don’t neglect to consider the effects of taxes on your savings and investments.

After considering the foregoing, you might determine that you can achieve some goals in less time. Or you might find that it could take longer. The time horizon is important to setting realistic goals.

Cashflow modelling as part of the financial planning process is also important if financial goals are to be achieved, such as repaying your mortgage, buying a holiday home, paying for school and university fees and being able to retire when you want to. It is also important that you have sufficient funds for emergencies to provide for unexpected expenses, such as a job loss or long-term illness. You can find out more about our cashflow modelling here.

Achieving your investment goals doesn’t happen by chance. It needs vision, a long-term commitment and the help of professional experts to create and execute your strategy. Investors are facing unprecedented challenges in today’s global markets. Finding answers can be hard. We can help you to meet your investment challenges – please contact us for more information

The value of investments can fall as well as rise. You may not get back what you invest.

A pension is a long term investment. The fund value may fluctuate and can go down. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation.