The most important question in financial planning

There are many different questions that you need to ask when you are planning for the future financially. When you are looking to up your game with a financial planner, there are even more questions that you will want to ask them when you interview before taking them on as your financial partner. But there is an even bigger, over arching question that is more important and must be answered before you can move forward with a good and sound plan. You cannot get to where you want to be if you don’t know where you want to be. The most important question that you need to ask yourself and be sure you have a clear answer for before you begin your investment strategy or before you take on a financial planner, is what you want to do with your money. financial planningIt is important to have a clear picture of what you are saving for, and how you want that money to work for you. If you are saving to retirement or for some large life purchase, it is important to fully understand what that is. If you don’t know what you want to do with your money, then you won’t be able to set up a plan that will help you get there, and in the end you will not have the right amount of money and you will have wasted those years that you could have been using for your strategy to make your money work for you.

The first thing that you need to do is sit down and decide why you are investing your money, and what you want to use it for in the future. If your investments are for your retirement, then the first thing that a financial planner is going to ask you is how much money you need to retire. You need to know what you want your retirement to look like so you know how to answer that question. You can retire early, and live in a third world country like Thailand for less than $20 per day. That means that you don’t need that much money in the bank to retire the way you want. But if you are hoping to travel the world in style, move to the south in the winter and the north in the summer, enjoying the vacation life along the way, then you will need a substantially larger sum for that life. If you are hoping to support your children as they have their own children, and have money for those trips and college fees, then that is another plan. Regardless of what you want to do, you won’t have enough money to do it if you haven’t planned for it before you talk to a financial planner about what you are doing to do. You have to first have have a road map and a plan to get you to where you want to be. You have to know what you want the money for so that you can calculate how much money you need to realize your dreams.