Question

Determine the targeted financial goals for short term, intermediate and long term. (800 words)

Answer 1

Answer:

The below are the ways to determine the targeted financial goals for short term, intermediate and long term;

Short term:

Short term financial goals are the ones which can be achieved within a year's time frame.

Examples of short term financial goals are a) Going on a vacation b) purchasing a television, refrigerator etc. c) paying off a short term debt i.e paying off credit card bills or debt on time.

Short term goals are more to do with the planning on your budget or expenses for the month and then establishing an emergency fund in times of exigencies.

Intermediate:

Intermediate or Mid term financial goals are the ones which can be achieved within certain time frame but not too longer time typically betwenn 3 to 5 years i.e. not more than 5 years

Examples of Mid Term financial goals are a) Completing a graduation b) buying a car c) paying off a medium term debt

Intermediate financial goals are the bridge between short term and long term financial goals.

Long Term:

Long term financial goals are the ones which take more than 5 years to achieve the goal.They generally require longer time frame or more committments and more money.

Examples of long term financial goals are a) Planning for children's college education b) savings for retirement or retirement planning needs c) Purchasing or owning a house

Long term financial goals will include paying off the mortgage loan, living debt free and building investments in real estate and wealth for the family.

When considering the retirement planning needs, one needs to estimate the desired annual expenses during retirement, how much investment has to be made in retirement assets and how much corpus to be created for funding the retirement plan.