ACCOUNTABILITY
How do I monitor my plan? How do I track my progress? When should I make adjustments? It’s great to
create a written financial plan, however, life changes and your plan needs to be modified or even re-done
along the way to reflect those possible changes. Setting up intervals, such as quarterly or yearly
reviews, will let you know if you are on track. If you’re not on track, you can determine what you
need to change to get back on track. That’s the power of tracking your goals, you’ll know if
and when adjustments need to be made.
GROW
How much do I need to earn on my investments to make my plan work? How much do I need to save to make my
plan work? How should my investments be allocated among different asset classes such as Equities, Bonds
and Cash?
A one percent difference in your investment rate of return does not seem like much, but over a long time
frame, it could be hundreds of thousands of euros or the difference in whether you achieve your financial
goal or not.
It is extremely important to match your expected rate of return with your risk tolerance and time horizon
to determine what you need to succeed.
OPTIMISE
How do I minimise my income taxes? How do I maximize financial strategies such as turning company profits
into personal wealth? How much you keep after taxes will impact your financial plan, so determining where
to invest your money, such as a retirement plan or company investment to minimise your current taxes and
have your investments grow tax deferred, need to be incorporated into a financial plan. Nobody knows how
long they’ll live, but creating a strategy to maximise not only your pay-out, but also your
spouse’s pay-out in case of a death is a critical piece of a financial plan.
PRESERVE
What happens if I have unexpected expenses? What if I lose my job? What if I get sick? What about a
premature death?
It’s great to plan for all your dreams and goals but you need to incorporate “what if�? contingencies
into your financial plan. In case of an unfortunate event, you should also have all the required legal
documents such as a Will and Power of Attorney.
ROBUST
CREATE A WRITTEN PLAN:
DO I REALLY NEED A WRITTEN FINANCIAL PLAN?
Studies have shown that those with a written retirement plan are three times more likely to
achieve their retirement planning goals than those without one. When you have a written plan, it will
serve as a blueprint containing all the steps that are necessary to achieve your financial goals.
VISION
What do you want to be doing in the next phase of your life? Paint a picture of your life 5 years from
now, 10 years from now, and beyond…
PURPOSE
What’s most important to you?
If you have specific written steps with due dates, you will be more inclined to stick to them. Breaking
down a long-term goal into small achievable steps will help you accomplish the big goal.
- Write them down.
- Prioritise them.
- Set time frames
