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Achieving Your Goals
We establish many financial goals, both short and long-term, over the course of our lives. Short-term goals may include saving for a car, a vacation, or holiday shopping. Some longer-term goals can include funding higher education, retirement planning, and wealth accumulation.
Short-Term Goals
For short-term savings, it is usually best to place your money in a product that won't fluctuate significantly in value. That way, you know how much you will have accumulated by the time you need it. Savings accounts, bank certificates of deposit, U.S. Treasury bills and notes, as well as money market funds, can help meet those needs.
Long-Term Objectives
Longer-term objectives such as retirement call for more growth-oriented investments. Retirement is not on the minds of many younger workers, but it is not uncommon for older workers to wish that they had started saving earlier.
Participating in retirement plans offered through your employer is one of the smartest things you can do. There are tax advantages to these programs, plus you get built-in financial discipline by having these funds deducted before you receive your paycheck. And, if your employer's plan matches part of the contribution you make, you are literally getting free money!
Building Wealth
As your funds begin to accumulate, an understanding of asset allocation and diversification becomes very important. Proper asset allocation allows you to maintain the balance of risk and reward that is most appropriate for you.
The wealth accumulation that many investors accomplish over the course of their lives also makes estate planning very important. Planning now for the efficient transfer of your assets at death is more than just protection...it's an act of love.
Funding an Education
Many parents and grandparents want to ensure that funds will be available for higher education when the time comes for their children or grandchildren to go to college. As with all financial goals, knowing your ultimate objective and starting the plan as early as possible makes all the difference.
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