Question

please list at least 4 long term financial goal excluding planning for retirement and investing. and include how you are going to achiver that goal and what actions you are gonna take now and later to help you achive that goal.

Answer 1

Long term financial goals :

1. To be able to provide for the college education and tuition fees for children. - Set up a trust fund or a long term maturing deposit with fixed payments from now, so that it can used in the future education purposes without having to go for a student loan.

2. Able to construct/ buy a house for living and pay off the debt before passing on to the next generation. - One of the most costly and important need for today is housing which is not available for cheap cost. So houses may be bought when the prices are low and it is expected that the cost of housing may increase in the future.

3.Not being stuck to a job working under a boss and be skilled enough to establish a business without the fear of down sizing from employment. - It is better to be self dependent for an income instead of depending on others. As the status of employment is uncertain and there can be recession in any moment, it is better to have a business of own. This can be acheived by capitalising on various changes or trends in the market and exploring them for a potential business opportunity.

4.Creating multiple income streams. Even if a certain source of income gets obsolete, our strategy should be diversified enough in order to receive income without any hurdles from other sources. - Depending on a specified source of income for the whole time is not advisable in the terms of risk. One should always diversify their source of income such that the changes affecting one of the sources does not impact the other. This can be acheived by a thorough analysis of each source and factors affecting them.

5. Good insurance policies to cover any type of contingencies that may occur to the family of self or dependents in the future. - It is always advisable to cover for the various events that may happen in the future which cant be anticipated. there are a wide range of policies available in the market for various events. selecting the best policy for a person is always helpful.