Fort Pitt Capital
Setting Goals: The First Step in Creating an Investment Plan
By Saghir A. Aslam
Rawalpindi, Pakistan
(The following information is provided solely to educate the Muslim community about investing and financial planning. It is hoped that the Ummah will benefit from this effort through greater financial empowerment, enabling the community to live in security and dignity and fulfill their religious and moral obligations towards charitable activities)
We plan our weekends. We plan our weddings, careers, and future. Planning not only helps set us up for successful outcomes in the future but can also help immensely in the present. It helps us define and refine our goals, align tactics, proactively address risks, and chart our progress.
Too often, however, the planning that could be the most valuable is overlooked. The same people who would not dream of embarking on a two-week vacation to Italy without an hour-by-hour itinerary may have just a basic outline of a plan for their retirement, which could last 20 to 30 years.
What drives this disconnect?
Many of us are intimidated by the thought of putting our plans on paper. Others fail to grasp the value of the planning process. One of the most common mistakes is thinking your situation is very simple and straightforward so you don’t need a plan.
This misconception can stem from a misunderstanding of exactly what constitutes a plan and an assumption that planning ought to be comprehensive enough to meet the needs of the rest of your life. Planning should meet you where you are and reflect your current situation. Your investment goals and your plan will evolve with you over time.
Effective plans are generally the ones that take your individual circumstances and those of your family into account. They should start with your goals and objectives and may encompass planning for investments, retirement, taxes, and wealth transfer.
As you map out your goals, consider the following:
Are you thinking of starting a business?
Are you exploring buying a second home or is there another big purchase that you would like to make at some point in the future?
Do you want to travel extensively after you retire?
Have you promised your children or grandchildren that you’ll help pay for their college education or for them to study abroad?
Do you need to build or rebuild an emergency fund for unforeseen expenses?
Is there a community program or charitable cause you’d like to support more robustly?
(Saghir A. Aslam only explains strategies and formulas that he has been using. He is merely providing information, and NO ADVICE is given. Mr Aslam does not endorse or recommend any broker, brokerage firm, or any investment at all, nor does he suggest that anyone will earn a profit when or if they purchase stocks, bonds, or any other investments. All stocks or investment vehicles mentioned are for illustrative purposes only. Mr Aslam is not an attorney, accountant, real estate broker, stockbroker, investment advisor, or certified financial planner. Mr Aslam does not have anything for sale.)
