There’s something extremely satisfying about setting a long-term goal and accomplishing it. If you have a long-term financial goal, I recommend 3 things you can do to reach your goal:
1. Figure out what exactly your goal will cost
You can’t set a goal if you don’t know what that goal exactly is. Sit down and figure out what your financial goal will cost. Add another 10% as a buffer.
2. Invest no matter what
Never get discouraged from investing. There are always reasons to avoid risking your money. But this would be a big mistake. Stocks go up over the long term, and if you have long-term goals, you need exposure to stocks for many years, regardless of what’s happening in the world. Hold on to your investment and sell only when you’re getting close to needing the cash. Best time to shift your money from stocks into less volatile investments is about 3 years before you actually need it.
3. Keep Your Fees Low
Every penny you’re paying to someone else is a penny not growing for you. Choose low fee online brokers, look at tax saving options and decide if you really need professional (paid) advice. If you need advice or it makes you sleep better, then this is money well spent. But many online brokers offer the ability to pay a one-time fee to work with an advisor to help create a one-time plan. Once you have a plan in place, you may not need a professional taking 1% of your assets every year to simply rebalance your portfolio. You can probably do that yourself.
Sven Franssen