Rather than just focusing on your investments, a comprehensive goals-based plan assesses all your goals including but not limited to protection, retirement, investments, and estate. It takes into consideration the interdependence of differing goals and the far-reaching implications they can have on each other.
For example, you may place a great emphasis on saving for a child’s education. Yet doing so could adversely impact your ability to put enough away to meet your retirement savings goals. Being aware that addressing one goal has the potential to impact others allows you to be more thoughtful in prioritizing and allocating resources.
Comprehensive goals-based planning also helps you look past the distractions of short term economic and market worries, keeping your focus squarely on those goals you want to achieve 10, 20, or even 30 years down the road.
The simple truth is that deeper knowledge leads to smarter actions. Depending on each of your goal’s funding requirements and prioritization, a financial planner can help you to explore a range of possible solutions.