In life everything has to be planned, be it a student studying for his board exams, a wedding, an elaborate meal or a game of cricket. Financial goals are no different and need planning to achieve them, it cannot be left till the end or expect it to plan itself. That being said not all financial goals are alike, each goal has a different need and time horizon, based on that we can categorize them as Short Term, Medium Term and Long Term.
Short Term Goals – Financial goals that can be achieved within 3 years are termed short term goals. These goals will need immediate access to funds and hence liquidity is important. Some of the goals that can include –.
Investment options for short term goals can be –
Medium Term Goals – Financial Goals that can be achieved between 7 to 10 years are considered medium term goals. One can invest in funds that have a longer investment time as the returns are higher and minimizes risk volatility with longer timespan. Some of the goals can be –
Investment options for medium term goals can be –
Long Term Goals – Financial Goals that can be achieved beyond 10 years fall into this category. The time horizon for such investment is longer and hence one can take some risk as there is time to recover from any unpleasant investments. The most important long term goal is “retirement”.
Retirement is a broad spectrum and can include going on a world tour, pursuing one’s passion, buying a retirement home away from city life or just sitting and enjoying the fruits of one’s hard work. Along with this, one may also want to plan for children’s wedding, grandchildren’s education, looking after a dependent sibling or child.
Investment options for Long Term Goals –
One cannot be prepared against all crises that life throws, as the world learnt the hard way in the pandemic, but planning for what we know or expect will not only reduce the stress but make one better prepared. A good trusted financial advisor can guide one through the different sectors of financial goals and what investments are best suited for each sector.
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In life everything has to be planned, be it a student studying for his board exams, a wedding, an elaborate meal or a game of cricket. Financial goals are no different and need planning to achieve them, it cannot be left till the end or expect it to plan itself. That being said not all financial goals are alike, each goal has a different need and time horizon, based on that we can categorize them as Short Term, Medium Term and Long Term.
Short Term Goals – Financial goals that can be achieved within 3 years are termed short term goals. These goals will need immediate access to funds and hence liquidity is important. Some of the goals that can include –.
Investment options for short term goals can be –
Medium Term Goals – Financial Goals that can be achieved between 7 to 10 years are considered medium term goals. One can invest in funds that have a longer investment time as the returns are higher and minimizes risk volatility with longer timespan. Some of the goals can be –
Investment options for medium term goals can be –
Long Term Goals – Financial Goals that can be achieved beyond 10 years fall into this category. The time horizon for such investment is longer and hence one can take some risk as there is time to recover from any unpleasant investments. The most important long term goal is “retirement”.
Retirement is a broad spectrum and can include going on a world tour, pursuing one’s passion, buying a retirement home away from city life or just sitting and enjoying the fruits of one’s hard work. Along with this, one may also want to plan for children’s wedding, grandchildren’s education, looking after a dependent sibling or child.
Investment options for Long Term Goals –
One cannot be prepared against all crises that life throws, as the world learnt the hard way in the pandemic, but planning for what we know or expect will not only reduce the stress but make one better prepared. A good trusted financial advisor can guide one through the different sectors of financial goals and what investments are best suited for each sector.
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