Systems achieve investment goals

By Mike Brady, Michael Brady & Co. Wealth Management

We’ve all been told that it’s important to have goals in life. Whether it’s a continuation of your lifestyle in retirement, starting a new business or running a marathon, it is important to have a vision of the future achievement of your goals.  

Picture yourself living the lifestyle you desire in retirement, crossing that finish line of a marathon or running a successful business. It’s also critical to have a system in place designed to achieve the goal. No one would contemplate running a marathon without having a training program in place that included a history of success in getting runners over the finish line. 

In the investment world, it is important to turn your investment goals into lifestyle goals. It is much easier to internalize a vision of your future lifestyle than it is to visualize having a set amount of money. (What does a room containing $1 million dollars even look like?)

Better to visualize your perfect retirement lifestyle. Where do you live? What activities fill your day? How are you taking care of your health? By visualizing your lifestyle you can then internalize the goal and create the system for its achievement.

A system for the achievement of investment goals would include the following basic building blocks: 

1. A proper asset allocation between stocks for growth, bonds for income and stability, and cash for liquidity. 
2. Broad diversification in each of the allocations to include small, mid and large domestic stocks, international and emerging market stocks, government and corporate bonds, real estate, commodities and other assets.
3. A systematic method of making contributions, or dollar cost averaging.
4. A method of rebalancing the allocations as the investments rise or fall in value.
5. Maintaining low costs and avoiding sales charges, transaction charges or surrender charges.
6. Avoidance of emotional decision-making or any thought of being able to time the markets.
7. A method of distributing the investments while minimizing taxes and avoidance of spending too much or too little.

A caring, experienced, fee-only, full-time fiduciary Certified Financial Planner professional can be invaluable to the achievement of your goals. We have helped hundreds of families achieve their dream lifestyle. Let us know if we can help yours.

Michael Brady is a fee-only, full-time fiduciary and certified financial planner. To set up an appointment, call 440-235-2100, email Mike@MichaelBradyCo.com, or visit MichaelBradyCo.com.