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Personal Financial Goals

July 17, 2012

Defining goals and objectives are the first steps in developing a sound investment strategy and should include the following:

  1. A time frame, e.g. one year, 8 years or 20 years.  
  2. Cash flow targets including sources of cash [i.e. income] and expenditures
  3. Establishment of an adequate rainy day fund
  4. Method to preserve assets while assuring a reasonable growth consistent with projected needs
  5. Not taking unnecessary risks


Goals in personal investing and wealth management should be driven by projected cash flow requirements and not by the acquisition of wealth.  The planning should be focused on attaining a fund adequate to secure your needs.  Too many people lose sight of the purpose of their assets and take excessive risks to accumulate additional assets when the increased amounts would not change their financial situation one iota, but a modest loss would cause a curtailing of some of their planned activities.  Keep in mind that losses usually hurt more than gains benefit

Make realistic goals and use them to lead your decisions.

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