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Financial Goals
What does financial success look like for you?
Everyone has different hopes and dreams, but one thing shared by every individual goal is the need for a plan to make it happen. Whether you’re looking to save for an overseas holiday next year or you’re working towards a retirement free of money worries, making a financial plan is an important step in the right direction.
Having a financial plan is just like having a good map when you’re planning a journey. It not only pinpoints your ultimate destination, it shows you the best way to get there.
Your financial plan can include any number of goals, some bigger, some smaller, short term or longer. Your Infocus Adviser can work with you to understand your individual needs and aspirations and set out a realistic plan that can help make things happen for you.
Planning is specifically about you
We all have a general idea about what we’re working towards and what we want in our lives.
Having a documented plan, with specific goals within specific time frames can help make those things happen. Your Infocus Adviser can help determine exactly what you might need to do.
Just one example of a goal could be that you want to upgrade your car regularly. For some people that could mean every three or four years while for others it’s ten. How much might that upgrade cost? And might leasing be a better option than owning your car outright? Your answers could have a big impact on the strategy for saving or investing that’s recommended for you.
“Retiring comfortably” is another goal most of us share. But what is “comfortable”? For some, an after-tax income of $25,000 would do it, while others might want $60,000 each year. Perhaps your family may have a history of longevity and you’re aiming to live to a hundred. In this case, planning to have enough money to see you through what could be decades of retirement is essential.
SMART thinking for your financial goals
SMART goals provide a useful framework for setting out goals that are:
| Specific | well defined with clear objectives. |
| Measurable | achievable goals with the ability to track your progress to success. |
| Agreed upon | all people contributing to success agree on what you are setting out to achieve. |
| Realistic | ensure your available resources will help set you up for success. |
| Time-base | realistic time frames to enable you to achieve your goals. |
When it comes to your SMART goals, don’t underestimate the power of positive thinking.
A positive focus on the outcome will help keep you in the right mindset to affirm your commitment to your goals and make them happen.
While everyone’s goals are different, we’ve helped clients plan for and achieve goals such as:
Saving and investing to paying for children’s education
Enjoying a “once in a lifetime” travel experience
Having the funds to travel regularly
Upgrading the family car on a regular basis
Taking a year off work to start a family or see the world
Changing from full time to part time work
Saving a deposit to buy a home
Ensuring the family can always be financially protected
Retiring at a certain time with a certain income
Generating a particular level of income
Passing family wealth and assets to future generations
Timing is everything
Having a written list of your financial goals and timelines is a step in the right direction to making them happen. Before seeing your Adviser, sit down with your partner and discuss your goals to ensure you’re in agreement on what’s important for you and your family.
When you are mapping out your financial plan, your Adviser can help determine time frames for your specific goals.
Planning, priorities and realities
Your Adviser will always aim to prepare a plan that meets all your financial goals. It’s important to remember, however, that you may need to be prepared to adjust your plans or make some compromises along the way.
When you are listing out your goals and their time frames, think about which ones are most important to you and where you may be prepared to be more flexible in terms of timings or financial amounts.For example, if you can’t retire with the income you’d like at a certain age, would you be prepared to work a little longer? Could you get by on a lower income? Or do you need to change your plans to save a little extra somewhere else?
Your goals and plans should be reviewed on a regular basis. A change in your personal situation such as a new baby or divorce, a pay rise at work or even an inheritance could all impact your plans and your priorities.
Weighing up the risks
Just as everyone has different financial goals, every person also has a different appetite or tolerance for risk. Your Adviser will work through a number of questions with you to determine your risk profile - the level of risk that you’re willing to take in order to reach your goals.
Some investments, such as shares or managed funds, may have a higher level of inherent risk. While they are likely to go up and down in value in the shorter term, they may offer the potential for higher returns in the longer term. If you have a conservative risk profile, however, these type of investments may not be for you.
Your Adviser will make sure you understand the risks involved with any financial strategy. You may need to decide whether you are prepared to accept a higher level of risk or perhaps think about revising your goals so they are achievable within your risk profile.
Individual goals can generally be put into one of three categories.
Once you’ve identified your goals and time frames, your Adviser can recommend a strategy to help you achieve them in the most appropriate way. Short term goals, for example, might involve a regular savings plan or short term investments such as cash. Plans for longer term goals might include recommendations for investment in assets such as shares or managed funds.
These investments could expose you to greater risk of ups and downs in the shorter term but give you better returns or growth in the longer term.
With over 20 years of experience we'll ensure you always get the best guidance.
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Greythorn Financial Services Pty Ltd ABN 48 477 113 239 is a Corporate Authorised Representative of Infocus Securities Australia Pty Ltd ABN 47 097 797 049 AFSL and Australian Credit Licence No. 236523
Infocus Securities Australia Pty Ltd ABN 47 097 797 049 AFSL and Australian Credit License No. 236523. This information is of a general nature only and neither represents nor is intended to be specific advice on any particular matter. Infocus Securities Australia Pty Ltd strongly suggests that no person should act specifically on the basis of the information contained herein but should seek appropriate professional advice based upon their own personal circumstances. Although we consider the sources for this material reliable, no warranty is given and no liability is accepted for any statement or opinion or for any error or omission.
Information published on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained in this document is General Advice and does not take into account any person & particular investment objectives, financial situation and particular needs. Before making an investment decision based on this advice you should consider, with or without the assistance of a qualified adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. Past performance of financial products is no assurance of future performance.
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