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 securely with dignity and fulfill their religious and moral obligations towards charitable activities)

Creating an investment plan that is meaningful to you starts with determining the goals you want to achieve.

One way to express your goals is to think of them as your own personal story that you are intending to write. For example:

“Now that I have my first grandchild, I’d like to save enough to help me comfortably retire so I can spend more time with my family. My spouse and I have had a lifelong dream of road tripping across the country once I retire. As we get older, I want to build up a savings fund for medical needs and start a legacy fund to help financially support my children and my grandchild.”

Or:

“I am passionate about supporting local businesses and have a goal of opening my own restaurant that partners with local vendors. I want to have enough money to start the business while helping grow our nest egg in case we need to dip into it while we are starting out. If we’re successful, I hope to expand the business by opening an additional location.”

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 who have a plan may be more prepared for life’s events and feel more comfortable that their goals will be met.

(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.)