Securing the first job paves the way for a long period of financial security. One sets long-term financial goals for that, which means objectives to achieve over a longer period. These include retirement corpus, buying a house or a second house, funding children’s higher education, children’s marriages, etc. Here are a few essential things to remember before setting long-term financial goals.
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Define Goals
Be precise in setting your long-term goals, as you would be investing a lot of time, energy and money to get things in your favour.
Time Horizon
Identify the time you have left before your long-term goals start approaching you.
Seek Professional Help
Always consider seeking professional advice from a qualified investment advisor for long-term goals that appear to be complex or challenging.
Break Down Goals
Breaking your goals into manageable milestones is best. The best way is to plan and link your investment with the goals. For example, you plan your retirement by investing X amount every month through the SIP route in a reputed large-cap mutual fund, and of course, your EPF adds to the retirement kitty. At the same time, your investments in PPF would take care of your child’s marriage 15 years from now.
Stay Disciplined
A long-term investment is an art. You have to be perfect while planning your long-term financial goals. You would want to seek professional advice on how to discipline your investment styles and make necessary adjustments whenever necessary.
Health & Insurance
Pay attention to your health insurance and life cover. Your family would need all kinds of financial support should anything happen to you over your long-term financial journey.
Stay Informed and Educate yourself Periodically
Always keep track of current affairs in the country. Changes in ecosystems like tax laws, banking regulations, stock market regulations, and yearly inflation can impact your investments over the long run.
A careful and right investment strategy will help you achieve all your long-term financial goals, provided you stick to them until the end in a disciplined manner.
