So you have a financial plan….and some goals are recorded. Now it’s time to break them down.
This past week I saw clients with 4 year old twins. They want to totally pre-fund their kid’s education. What does that cost? There is a range between studying locally and living at home to attending Oxford University in London, England. I like to project for a minimum of $20K in annual expenses for 4 years. Since there are 2 girls we aim for $160K in 14 years.
Currently they have $20,400 in savings and they contribute $480/month. My job is to earn the projected 7% annual rate of return. In 14 years they should have accumulated $187,300 exceeding our goal.
Another example of a goal is a vacation. I like lots of long weekends but some people plan for bigger things. I saw a doctor and her hubby who told me to plan on annual spending of $5500 for 4 mini vacations. Broken down, we established a safe savings account contributing $458/month to achieve that goal. So great to go on a vacation and return to a clean credit card statement!
What ever your goals are….break them down and adjust the time you have to prepare and rates of return on investment. Feel free to contact me if you need help.
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Adrienne Simmons is an entrepreneur with a Canadian financial consulting business since 1994. She is a Sr. Canadian National Tennis Champion. She believes in the co-relation between a healthy body, mind, and finances. She enjoys creating life vision and balance through a clear financial plan for her clients. She can be reached at firstname.lastname@example.org or 770-689-7262