Setting financial goals
What tradeoffs are you willing to make to achieve your financial goals?
The main secret to increasing wealth is simple: spend less than you earn! If money is not saved, wealth is not created – it’s that simple.
Detailed financial planning requires making trade-off decisions, whereby you decide what you will spend for day to day living, and put that money towards achieving your financial goals, in order to create wealth for yourself in the long term.
Goal-driven investment planning
Our process for a new financial plan is like this:
- You set financial goals, and timeframes within which they will be achieved
- We consider the pros and cons of relevant strategies including debt consolidation and optimisation, debt recycling, gearing, superannuation versus non-superannuation savings, direct versus managed shares, etc…
- We evaluate whether the original financial goals are realistic; if not what modifications need to be made
- We work with you to develop an integrated long-term plan.
Some questions we might consider during this process, depending on your situation, are:
- what is the right balance between risk and reward, given your financial goals?
- what is the best mix for investing salary income, pre-tax versus post-tax?
- how quickly should debt be paid down, and is a debt recycling strategy a good idea?
- what is the right amount of investments in superannuation versus non-superannuation?
- what is the best mix of managed funds and direct equities?
- what is the right amount of investing in residential property vs equities?
- how much time do you have for making buy/sell decisions of investments?
- where are you “wasting” money on underperforming investments and high interest rates on debt?
- is there enough diversification in your investments, i.e. are all your eggs in the same basket?
If you are receptive to good advice, we can help you make good tradeoff decisions.
We help you understand the risks as well as decisions on tradeoffs so that you know your efforts won’t be wasted. We let you make the decisions based on our advice.
We make sure you understand the implications of your decisions and then let you make the decision, rather than deciding for you. Contact us today to find out how we can help you plan for your future wealth creation. There’s no obligation or cost for the first meeting.
Check out some of our articles on basic investment strategies:
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Archimedes Clients are:
- Professionals of any age
- SME Business Owners
- SMSF Trustees