INDUSTRY INSIGHT
YOUR FINANCES
SPONSORED CONTENT
SAVING FOR LONG-TERM GOALS
I
recently traveled to Missoula , Montana , and a couple of friends and I decided to hike one of two hiking trails that have very large letters built on the mountain at the top of the hikes . The M Trail is more popular , representing the University of Montana , which is located at the base of the hill . The L Trail is for nearby Loyola High School and is supposedly a bit more challenging overall . We couldn ’ t find parking near the M , so we ventured to the L .
As we stood at the base of the hill , it looked pretty steep , and the path was initially very narrow and a bit overgrown with brush . Only one of the three of us ( not me !) had any experience hiking . We stood there for a while , trying to decide whether to proceed . We finally decided to give it a try and hiked for a few minutes . We talked again and decided to keep going . Eventually , it opened up , and a series of switchbacks emerged , allowing us to ascend without having to hike straight up the hill . We took each portion of the hike in segments and made it to the big L , our goal !
As we hiked along , I started to think about how that hike was a lot like navigating the process of saving for long-term goals . If you want to retire , send your kids to college , or save for a long-term goal , it can seem very daunting if you just focus on the end game — the final amount needed to achieve the goal . However , if you take it one step at
a time and measure your successes as you proceed , you will reach the top before you know it .
Retirement is a very large expense if you only look at the total need . Sending kids to college is scary due to the rising cost of education and the limited time frame to save for it . Here are five tips to help you with those long-term goals : 1 . Start out saving what you can and take small steps , even if you do not think it will move the needle much . Each year , try to increase it gradually . If you get a raise , use that money to add more to your investments . Setting up an automatic monthly investment works well for saving toward a goal . Over long periods , small amounts can significantly add up to help in meeting long-term goals .
2 . Take advantage of tax-favorable investments . For retirement , using Roth and / or Traditional 401 ( k ) s and IRAs can provide tax advantages either now or during retirement , depending on which you choose . Some people put a portion of their contributions in each to get some tax benefit now and some at retirement . Definitely take advantage of employer contributions by investing the percentage that gets you the full match . That is free money !
3 . Do not be afraid to take some risk , especially if you need to start small — just like we had to do to start our hike . The biggest factors in achieving long-term goals are time , amount invested , and return on investments . If you cannot add much , you want to make sure it is working as hard as it can for you .
4 . Make a plan and stick to it . Goals need to be specific and measurable . If you stay the course , you will arrive at the top of the hill . Having a plan in place is essential to know how much you need to invest and what your rate of return needs to be to reach your long-term goals .
5 . Hire a financial advisor . It would have certainly helped us if we had a guide when we started our hike . Having an advisor to help with the plan and proper investment allocation can make all the difference . You want someone who is skilled in helping others like you achieve their long-term goals , so you do not need to go it on your own !
David Hoffmann has 27 years of experience as a Financial Advisor and is the CEO of Justabout Wealth Management . As a CFP ® designee , he counsels clients on financial planning and investments . He also serves companies by providing retirement plans .
For further information , contact David at : Justabout Wealth Management , 375 Legal Southpointe Disclosures Blvd : Securities . Suite 360 offered , Canonsburg through Triad , PA Advisors 15317 , Member FINRA / Office SIPC . Advisory : 724.754.1440 services offered through justaboutwealth Triad Hybrid Solutions . com LLC , a registered
investment advisor . Justabout Wealth Management LLC and Triad Advisors , LLC are not affiliated .
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