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.)
When investing in a regular IRA or ROTH IRA is a big choice. I consulted my accountant and the CPA and both favored a regular IRA because to start with you don’t have to pay taxes.
I listened to both of them and I thanked them for this advice but I told them that in my opinion, it is better than paying the taxes and investing in the ROTH IRA. Let me show you how I have applied the same philosophy to both of my daughters and I didn’t stop there when the time came for our great children. I said the same as I told the CPA and accountant: let’s invest in a ROTH IRA.
A few months ago, when we had the annual family meeting, I shared this with every one of them, including my grant children. How much amount you do have in your ROTH IRA? I told them the good news is that none of us have to pay any taxes on this ROTH IRA. So, let us grow and you realize this will be the best thing we ever did.
I have shared some valuable information with you and you can check with your investment advisor and the accountant to see when you want to invest in regular IRA or ROTH IRA. The decision is yours.
After identifying your goals, the next step is to understand how much money you will need for each goal. This information will help you determine your saving and investing priorities, your time horizon for each goal, and the amount of investment risk you’re comfortable taking to achieve each goal.
There’s no one-size-fits-all answer to achieve each goal. Life throws curveballs and your priorities may change; however, people with a plan may be more prepared for life’s events and feel more comfortable meeting their goals.
Sometimes we don’t realize but we spend so much money on Starbucks tea and coffee which is 4 to 5$. Some of us visit Starbucks multiple times in a week. If you add up all of that you will know how much you are spending in a month.
(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.)
