Strategy & Investment Goals – Beyond Retirement

Beyond Retirement – Identifying your Investment Goals and Developing a Strategy to reach those goals.

• Retirement is not the only major financial event that will impact our lives.
  • Many goals in your life hinge on having the right amount of financial capital to ensure these goals are accomplished….home, car, business, child’s education…
• Consider what your goals are in life and how your finances impact the ability to realize these goals.
  • What funds will you need?
  • What funds do you have now?
  • How long is it before you want to realize this goal(s)?
  • What can you currently save toward achieving this goal?
    • Based on your savings rate and time frame, do you project that you will have the funds necessary to realize your goal or do you have less than the necessary funds?
      • Monthly Savings * Months Until Your Goal is to be Realized = Funds available to achieve your Goal.
        • Example – $416.67 * (8yrs * 12mo) = $40,000
      • Funds needed to achieve your goal – Funds available to achieve your goal = The funds you will need to earn through investing.
        • Example – $50,000 – $40,000 = $10,000
  • Breakdown the funds you will need to earn through investing into a annual percentage of your annual savings. 
    • (Funds you will need to earn through investing / The number of years until you want to achieve your goal) / Funds saved annually towards your goal
      • Example – ($10,000 / 8 ) / ($40,000 / 8yrs) = $1,250 / $5,000 = 25%
      • Based on this example, your investments would need to earn an average annual rate of 25% over the 8 year period you are saving for your goal.
• Remember that you may need to adjust your savings rate or the time period you seek to achieve your goal, if you are relying too heavily on very high rates of return on your investments.