Posts Tagged ‘Term Goals’

Break the Journey Down Into Steps

Monday, November 7th, 2011


“If you can write down specific steps to implement your goals, then you’ll be good at reaching both short-term and long-term goals,” says Richard, a professor of social psychology. “Of course, it also helps if you build in small rewards along the way. It keeps you going.”

Martin and Jennifer, our second makeover couple, can attest to that. When we first met them, they told us they felt poor, even though between them they made $100,000 a year. The problem was that after paying the mortgage on their nine-acre Christmas tree farm near Oshawa, Ont., and feeding their three kids, they never had a dime left over. They were worried about financing their kid’s university education in a few years and wondered if Jennifer should go back to work full-time, even though she didn’t want to.

During the financial makeover, Norbert came up with a plan that helped them address all of their concerns. At first they felt relieved, but when they got back home, they found themselves facing a massive list of financial tasks. He had told them to sell the insurance policies they had on the kids, cancel their expensive wrap account, build a portfolio of index funds, and given them many other tasks, each one requiring dozens of forms to fill out, lots of phone calls and likely, a fair bit of stress. The big risk was that they would become overwhelmed by the enormity of their assignment and do nothing at all.

Luckily, rather than setting off in a dozen different directions at once, they prioritized what they had to do and attacked one goal at a time. Their first step was to construct a computer spreadsheet to track their expenses. Next was setting up a weekly budget meeting every Monday to keep track of their progress (they still meet weekly to this day). After that, they set about selling off their wrap funds. Then they cancelled the life insurance products they had bought for their kids.

Life threw them a curve ball when Martin was laid off at the nearby auto plant, but Jennifer soon found a full-time job of her own, and they continued to attack their goals one by one. They set up an automatic transfer of $200 a month from Jennifer’s chequing account to an RRSP.

 

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3 Ways to Sabotage Your Financial Plan

Thursday, August 11th, 2011


  1. Focus only on the numbers. The mechanics of figuring out how much you have to save and how you should invest will only get you halfway there. Common goals to which both you and your spouse are committed are what’s really important. The numbers are details.
  2. Go for the quick fix. Financial planning takes time. You have to set your long-term goals first, then look at the steps you need to take to get there. If you don’t put together a complete plan, you could end up focusing on short-term goals, such as juicing your returns, that could cost you money in the long run.
  3. Force someone to change who isn’t ready. You can’t bully a spouse into accepting a financial plan he or she isn’t ready for. Both of you have to really believe in the destination. It will take time, sacrifice and compromise – from both of you. If the goals are too ambitious for one spouse, you might have to ratchet them down to start.

 

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Long Term View of Investment Strategies

Saturday, January 24th, 2009


During an uncertain or “wavering’ market , it is more than understandable to be concerned about the workings  of financial markets and their underlying systems and controls.  Do they come back over time ?  Do the essentials always work themselves back into play ?  Does market equilibrium and equilibrium’s kick back.  Or is it a case of those foolhardy M.B.A.’s and it can be best said that they are little different than politicians in that they always take credit for positive changes and effects while blaming others and their predecessors for any negative effects and that a monkey throwing darts at the wall could of done just as well , if not better ?

On the other side of the fence it is most important to always remember that market volatility is a most normal part as well as vital component of economic and financial cycles.  It keeps the market honest and on track so to say.  Thus these times present buying opportunities when all the others are staying out the race and it is a tremendous buying opportunity for you , with less and indeed little competition from other investors in the financial forex marketplace.  You will be able to purchase your investments at most highly discounted big discounted prices.  It can be said that when the market gets tough , the top investors are out there purchasing.

If your investment portfolio is based on risk tolerance and is properly diversified across the waterfront  across the full range and many sectors, investment styles and geographic regions,  it can be well said that the short term volatility  and volatility will have little , if any effect on your long term goals and actions.

Lastly if is also important to note , emphasize and remember that ,historically. there have been many market events over time and history that have had dramatic short-term impacts on the financial markets and marketplace.  Looking back , over time  and expertise , it can be said that generally that these have been “blips” on the financial market radars.  Its all in the long term view.

 

The Bubble Goes Bang: Is Buy & Hold Dead? – Assessing whether the long-term investment strategy of ‘buy and hold’ is dead, with John Bogle, Vanguard founder & fmr. CEO; Jeremy Siegel, University of Pennsylvania; and CNBC’s Melissa Lee. http://www.cnbc.com/id/15840232?video= …

Market still a gamble even taking long view – Stocks had been sold relentlessly as the best long-term investment. You just had to buy and hold to get the highest return on your savings, which made it perfect for funding retirement. Now it has turned out you need to hold for multiple decades, and those with shorter investment horizons have … But before you throw up your hands and go back to staying forever in safe, modest-yielding bonds – a very good strategy, it has turned out – you might consider one more option. …

Fidelity Investments – At a time when economic conditions have been tough and retirement savings balances for many have dropped, it’s more important than ever to strengthen your saving strategy. One of the most effective ways to do so is by saving through … FPRA also provides a range of convenient investment options so you can create your own portfolio or choose single-fund solutions managed by Fidelity. Keep your long-term perspective. Saving consistently through your annuity over the long …

Was Madoff a Better Investment Than Your Mutual Fund ? « blog maverick – holy moly! and those of us who just put our money in a coffee can and bury it in the back yard are wondering if madoff and stanford (and market) investors should have followed the same “strategy”. but, as they say in the lottery, …. As each one of them dropped to the single digits I was tempted to buy a 1000 shares as a “long term” investment but my instinct for preservation saved me. One thing that stood out when the Madoff story broke was that he said he was paying …

AllAboutAlpha.com» Today’s Post » Financial crisis to slow … – First, convergence may take place on the investment strategy or activity level (”strategic convergence”). Hedge funds may make long-term investments in illiquid assets that are normally the domain of private equity funds. …

The Darwinian Investor: Different Investment Styles and Trend … – This is a blog about a stock trading strategy known as trend following. Using a variety of stock scanners, I will identify securities that are in major trends, trends that can be ideal for either the buyer or short seller. In time, this blog will show investors that it is … Finally, on the other side of the spectrum, it is possible to be a very long term trend follower. This type of investor would most likely use monthly charts, and may only make a few trades a year. …

Choosing Optimal Investment Strategy: Active Portfolio Management … – Before you make even one investment, you must decide on your optimal investment strategy. Two very different strategies are active portfolio management and long term investing. The strategies that you choose for an optimal trading …

Your Investment Professional Convinced You To Hold: What Now … – This theory inherently discourages the use of cash and ignores the merits of alternative strategies (i.e. market neutral, short selling, hedging, non traditional asset classes, etc. … Originally, MPT was used primarily by institutions ( i.e. endowments, pensions), organizations that could afford to take a very long-term (30+ years) view. However, over time, MPT has been adopted in mass by the investment industry and applied to non-institutional investors (individuals). …

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All We Have to fear in the Financial Fields Oct 2008

Thursday, October 2nd, 2008


It is always best to work with your broker of financial adviser to devise a plan that will best meet your objectives as well as short and long term goals. It can be most difficult as it is currently in October Sept /08. Nothing makes sense. Its as if none of the fundamentals count – or to put another way panic and fears step in. All we have to fear is fear itself . Yet in this it theft, lying and cheating. It could be said that foreign markets – the developing markets lack controls. Corruption and misstatement of facts is the norm. Yet is or was much different in the USA. What of the SCC ? What of the watchdogs ? When one turns on the tv and hears ads that “If you have been turned down for a mortgage come to us.” All very reassuring or not reassuring as to the honesty , integrity and intelligence of those being paid big dollars in the financial fields.

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