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Whether you’re saving for a down payment on a first home or creating a nest egg for retirement, setting financial goals helps provide a road map. By taking a few measured steps, you can get to your destinations. Besides talking with a financial advisor, use the following guidelines to establish realistic and achievable goals.

Do:

Identify the most important short- and long-term goals.

What do you want to accomplish financially over the next one, five, or 10 years? Do you have a teenage child who has their sights set on college? Is retirement on the immediate horizon? Answering these types of questions will help you identify your short- and long-term goals. A financial advisor can help you determine how long it will take to reach them and what steps you need to take.

Think about how much each will cost.

If you’re saving for a down payment on a house, many lenders want to see 20% of the total purchase price. After you’ve determined how much you want to pay for the home, you’ll have a rough estimate of how much to save. Perhaps you want to pay off outstanding credit card debt. Add up the total amount and calculate how much you would need to pay each month to chip away at the balance. The mission of knowing how much each goal will cost helps provide you with hard figures toward reaching them.

Don’t:

Have one account for all of your goals.

financial advisorsComingling funds in one account for several financial goals makes it harder to stay focused. Set up separate savings or investment accounts for each of your goals so that you can individually track their progress. In fact, name the account with its intended purpose—retirement fund, college expenses, or student loan debt payoff. With separate accounts, you can also make adjustments along the way if you need to increase savings or temporarily scale back.

Forget to conduct research.

Review investments that will help meet your unique goals. If this is an area that you’re unfamiliar with, or you need professional guidance, a financial advisor can provide recommendations based on your risk tolerance level and desired time frame. The top advisors may also offer feedback based on other factors, such as your age—in the case of saving for retirement—and income supplement if a loved one relies on you financially.

 

Setting and meeting your short- and long-term financial goals doesn’t have to be intimidating. Headwaters Investment Counsel & Asset Management specializes in helping individuals from all walks of life make customized choices. Based in Willoughby, OH, the national money management firm has a team of experienced and licensed financial advisors who will always have your interests in mind. From defining investment risk to planning for passive income, your goals are a top priority. To get started, call (440) 399-3359. Visit the website to learn more about the firm and its services.

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