Financial planning has become an essential approach to help meet life’s many goals. When mapping out your financial plan for the long term, it’s worthwhile to note three key factors:
- Define your goals and craft a plan as you embark on an investing journey
- Stay invested and use time to your advantage
- Be prepared to make adjustments as you embrace changes
As you work towards achieving your investment goals over the long term, consider a flexible approach to help you navigate any market volatility and uncertainties while keeping three principles in mind - define your goals and craft a plan, staying invested and be prepared to make adjustments.
- Define your goals and craft a plan: Choose an asset allocation strategy that adjusts over time so as to broaden income and growth opportunities. This could also help you balance different factors and make adjustments as life, markets and the economy change.
- Stay invested and use time to your advantage: Create and investment strategy that allows you to take advantage of the longer investment horizon for goals with longer time frames.
- Be prepared to make adjustments: Be sure to have a reserve fund of liquid short term investments and cash to embrace unexpected changes.