If you knew 5 years ago, what you know today, what action would you have taken, what decision should you have made or what financial plan would you have put in place to make things better today?

Looking at the next 5 years, what will be different; is it time to make a plan and if you  are thinking it and need one to follow, these few pointers have helped thousands to get their plan started;

1 - The Plan

- Take a snapshot of your current financial position

- Identify anything to improve, change or stop doing

- Find the WIN factor…i.e.  What’s Important Now

- Set some challenging goals and targets 

2 - Stay motivated & don’t give up on your plan!

Why Plan …it’s probably not a coincidence but research says that people who have opted in to some type of financial planning will usually have

The least money worries

The most peace of mind

The best quality of life

The smallest amount of financial stress

This doesn’t mean that everything is financially100% ok but they will usually know what plan needs to be fixed, how to fix it and when to fix it

3 - What  to plan for…..what can happen?

Financial needs arrive with different life stages like for example;  
 

-       Marriage; Joint everything afterwards

-       Buying a House; Major financial commitment

-       New Arrival; All other plans out the window

-       Education Fees; Arrives like a thief in the night!

-       Promotion; Increase in salary 

-       Career Change; Similar to promotion - hopefully! 

-       Divorce; No advance planning, if it happens, urgent plans required  

One of these stages happening is manageable …two or more happening at the same time with no financial plan in place can be very challenging

4 - The next move… what life stage are you at now?

5 - Make the right Moves – No Plan ~No Goals ~ No Glory

Make the first decision that every plan needs ~ decide to start TODAY 

This article is the property of Life Goals Financial Services.  You are welcome to quote from it with the normal professional and business courtesy that you recognise life Goals as the source 

Paul Cullen has over 20 years experience in the Financial Services and Insurance Industry.  He is M.D. of Life Goals Financial Services and his company provide financial planning advice to both corporate and personal clients  

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What is your Personal Risk Profile?
 

Follow 9 simple steps to find out

1 First: Risk Rate Yourself?

 Are you a No, Low, Medium or High Risk? 

On a scale of 1 to 10, 1 being low how would you rate yourself? 

Would you know the savings plans that best match your own risk rating?

2 Your Risk Worry Profile?

 Are you cautious, balanced or adventurous?  For example, answer the following

 “The thought of losing money on a saving and investment makes you nervous?“

- Disagree strongly?
- Disagree?
- Neither agree nor disagree?
- Agree or agree strongly?

3 Your Age Risk Profile?

 If you are older you may be less inclined to accept any risk; you may need capital security, access to capital, want to avoid penalties for early encashment and keep charges to a minimum

4 The Gender Risk?

 Females tend to be more risk averse than males.  Important point to cover if you are a female planning an investment on your own or with a spouse / partner or vice versa, either way, there is potential for RISK! 

5 Current Investments Portfolio & Risk?

How and when were these investments set up? 

 
Distinguish between what you may have inherited or may have acquired from company shares versus investments that you picked yourself

 

6 Past Investment Experience & the Risk?

 Maybe you don’t have any experience or because you are older, your previous investment strategy is no longer suitable.  

Understanding the past experience will help with attitude to risk today

7 What is Your Risk Capacity?

Based on current income, available assets that are free to invest; actual income requirements, current age/ health and investment objectives

8 The Investment Time Available & the Risk?

How are you planning to use the investment in the future: for example, is it to fund a deposit on a house in 5 years; is it to pay for college education in 15 years; is it an emergency fund; a gift to your children in the future?  

The answers to these type of questions will have an impact on the level of risk that you may find acceptable or is recommended

9 Risks and an Investment Portfolio 

It is unusual to find that one investment can meet many needs.  For a number of financial objectives a number of investment products may be required.  

This would create a portfolio of investments and is not normally a problem

Provided “your risk profile” is applied to each and every saving and investment!

This article is the property of Life Goals Financial Services.  Your are welcome to quote from it with the normal professional and business courtesy that you recognise Life Goals as the source

Paul Cullen has over 20 years experience in the Financial Services and Insurance Industry.  He is M.D. of Life Goals Financial Services and his company provide investment and savings advice to both corporate and personal clients