A Simple Wish or a True Goal?

    Which type of goal planner are you:

A) The “do-nothing type”, because the alternative is too scary, i.e. reality

                      OR

B) The “over-analyzer”, to ensure you “get it right”, right down the last minute detail.

Either way, it’s crucial to understand the difference between a simple Wish and a true Goal.

The attached sketch and corresponding article below will help you visualize the difference.

Is Your Retirement Vision Shaping Up to be Successful?

As everyone’s situation is unique, contact me directly at 416.838.3617 or nparkhouse@pssecurities.ca so I can help you determine the most appropriate investment and tax planning solutions to bring your ideal retirement vision to life!

Sincerely,
Nathan

Three Guesses to Reach Your Goals

Carl Richards | Behavior Gap | March 16, 2015

How much money do you think you’ll need in retirement ten years from now?

Twenty years?

Thirty years?

We know — sort of. But this lack of precision can lead to one of two things:

• We end up doing nothing because we assume we’ll never know the “right” number

• We run formulas and use calculators until our heads spin, trying to get the “right” number

I’m not crazy about either of these options, which leads me to a third option:  We guess.  Here’s the thing, for some goals, like a family vacation, we can probably get down to the penny how much the trip will cost.  So we save the money, make the plans, and go on the trip.  Goal accomplished!

But what about the goals that will take longer?  That’s where we start to guess.  Yes, I know how crazy it sounds to guess about money, but stick with me for a minute.

The “Three-Guess Process”

I refer to it as the “three-guess process”:

1. What is the goal?

2. When do you want to do it?

3. How much will it cost?

Remember that you want to be as specific as possible about the goal, even though it’s a guess.  Getting specific will help you feel more confident guessing about the cost.  For instance, “financial security” sounds great, but you’ll have a hard time guessing a realistic cost.

Set a Goal: On Paper

So when financial security comes up in discussions, I suggest you set a goal to build an emergency fund if you haven’t already done so.  Many people feel good about having six months’ worth of expenses saved, but for other people, it might be three months.  Only you know the number that feels right for you.  But the important point is that you’ve set a specific goal and have a pretty good idea of the cost to reach that goal.

Of course, there’s the possibility your actual monthly expenses will fluctuate over time.  But your best guess now will do a good job of helping you deal with most of the future possibilities.  Doesn’t that sound better than doing nothing or walking around with a calculator glued to your hand?

Plus, this process of guessing helps you stay flexible.  Life will happen, and you’ll need to make adjustments along the way.  Those adjustments are easier to make when we allow ourselves to guess and not obsess over the idea of the “right” number.

Is your Retirement Portfolio Flexible Enough to Adapt to Changing Market Conditions?

Unclear about the appropriate level of investment diversification for your retirement needs?

Contact me directly at 416.838.3617 or nparkhouse@pssecurities.ca so I can help you ensure your portfolio is invested in accordance with your unique retirement goals and adaptable in accordance with changing market conditions.

And, feel free to forward this article to someone with whom you feel this topic will resonate.

Sincerely,
Nathan