A Better Financial Life By Summer
As we step into the new year, it's a great time to take a step back and evaluate your financial situation. If you're feeling like there’s room for improvement but you're not sure where to start, you're not alone. Over the years we’ve found that with just a few focused steps, you can make real progress. At Sequoia we want to help transform your financial life, starting right now.
1. Set Flexible Long-Term Financial Goals
Long-term goals are important because they help guide your decisions today, whether it’s saving for retirement, buying a house, or funding a child’s education. The trick is to keep these goals flexible. Life is unpredictable, and your financial priorities may shift over time. A rigid goal doesn’t adapt to life’s changes, and you are more likely to drop it. Part of our work with clients is keeping the long-term trajectory of your plan in focus, while meeting today’s needs.
When setting these goals, consider what truly matters to you, and don’t be afraid to make adjustments. Flexibility in your goals doesn’t mean a lack of commitment; rather, it means that you’re adapting to the twists and turns of life while still working toward your desired future.
Once you’ve defined your goals, an annual review will make sure they still align with your life plans and adjust as necessary. Flexibility will keep you on the right path, even when the road ahead isn’t as smooth as you expected.
2. Create an Investment Plan that Reaches Those Goals
At its core, an investment plan is a roadmap that outlines how you'll use your money to achieve your goals. Whether you're planning for retirement, saving for a major purchase, or building wealth, an investment plan will provide you with the structure you need to stay on track. Our team at Sequoia works with you to break your goals down into the actions that take you where you want to go.
The first step in creating your investment plan is understanding your goals—what you're saving for, how much you need, and by when. Then, consider your time horizon and risk tolerance. Are you investing for the short term or the long term? Do you feel comfortable with the potential ups and downs of the market, or would you prefer a more conservative approach?
A well-thought-out investment plan doesn’t just grow your money—it helps you stay disciplined and focused. It takes the guesswork out of investing, so you don’t find yourself making decisions based on emotions or market hype.
3. Judge Your Investments in Relation to Meeting Your Goals
The investment industry has made the focus on returns; specifically returns compared to the other guy. Whether or not your fund performed a little better or worse than the next guy will have little to do with your success. Instead, evaluate your investments based on what matters to you – your plan!
Most problems with investments are self-inflicted wounds. It’s easy to become unnerved by all we hear about the markets. We help you cut through the noise and keep your eyes on the ball. Here are a few ways to judge whether your investments are heading in the right direction:
Regularly review your goals to ensure your investments are on track to meet your time frame, and adjust your strategy if needed.
Assess risk - revisit your risk tolerance periodically.
Stay disciplined - don’t get caught up in market swings.
Final Thoughts
The habits you develop today can have a profound impact on your financial future. By setting flexible long-term goals, creating a well-thought-out investment plan, and regularly evaluating your progress, you’re laying the groundwork for a secure financial life.
Remember, it’s about consistency and adapting to changes along the way. By committing to these three steps, you can set a course for success and transform your financial life by the summer. Sequoia is here to help when you need us. Here’s to a financially fulfilling year ahead!
Written by Michael Lindemann
Senior Advisor
Sequoia Advisor Group