Now you understand what’s wealth, it’s time to set financial goals. This is the most crucial step as setting the right goals will lead you to the right path. I am not a professional financial planner, but I’d like to share the thought process I put into during my own financial planning. There are 6 questions to ask yourself first.
Your Current and Future Expected Lifestyle?
This is to understand what monthly expenses you need to plan in.
Your Accumulation Phase vs Semi-Retirement Phase vs Retirement Phase?
Typically, I split my adult life into 3 phases, regarding to the relationship with money. It is important to know how long each phase in your life is.
- Accumulation phase where you build your wealth.
- Semi-retirement phase where your tune down your accumulation but do not touch on your savings/investment yet.
- Retirement phase where you start withdrawing.
Phase1 (Accumulation Phase):
How much wealth do you want to accumulate? What’s your savings rate? How much risk can you accept and what investment vehicles do you want to use?
This phase typically starts from the moment you start working until post-midlife. In this phase, you will most likely earn more than you spend, and have extra money to save and invest to build your wealth. You need to find an investment strategy which fits your time horizon & risk appetite and meets your accumulation goal.
Phase2 (Semi-Retirement or FIRE Phase, An Optional Phase):
How much income do you need to cover your expenses?
In this phase you have already accumulated the wealth you need, had most likely paid off your mortgage and reserved kids college fund. You decide to tune down your 9-to-5 employment to pursue other passions or interests to increase your fulfilment in life. You could still work on side-hustle basis to earn extra income to cover your expenses, so you don’t have to start withdrawing your investment and savings yet; or you could withdraw less than annual growth of your net worth, so your total wealth doesn’t decline.
Phase3 (Retirement Phase):
What is your withdrawal strategy?
In this phase you will probably do not any more income, and start to withdraw your investment and saving funds including stocks/bonds/cash savings/SRS/CPF etc. Your net worth will start to decline (which is fine). You shouldn’t withdraw too quick to deplete your wealth before you pass away or withdraw too slow and leave most of your wealth behind and have some of your dreams unfulfilled.
Future Big Fnancial Commitment?
Gifts to children/grandchildren, a year-long world trip?
Once these questions are answered, it’s time to move on to actual planning! You can DYI by creating your own spreadsheet or finding an online financial planning tool. Remember to discuss with your loved ones so he/she is on the same page. You can also engage a professional financial planner who will be able to help you if you are not comfortable doing by yourself, or even if you are, they might be able to help you find blind spots in your planning.
现在你理解了什么是财富，是开始做设定财务目标的时候了。这一步很重要，因为正确的目标会引领你你走在正确的路线上。我不是一个职业的财务规划师，可是我想分享一下我自己财务规划是时的思路。要问你自己下面6个问题。
现在和未来想要怎样的生活？
这是为了了解你要计划怎样的开销。
积累阶段，半退休阶段，和退休阶段有多久？
通常我会把我们的成人的人生以及和财富的关系，分成三个阶段。了解这三个阶段各自有多久，对你很重要。
- 积累阶段中你在积累你的财富。
- 半退休阶段中你开始减少你的收入，但是还没有开始提取你的储蓄和投资。
- 退休阶段中你开始提取你的储蓄和投资。
第一阶段（积累阶段）：
你需要积累多少财富？你的储蓄率是多少？投资方面，你可以接受怎样的风险，和怎样的投资工具？
这个阶段通常从你进入职场开始，到中年后期。这段时期你通常挣的比花的多，有多余的净收入可以用来积累财富。你需要找到适合你的投资方案，结合你这个时期的时间范围，风险偏好，和你的财务目标。
第二阶段（半退休阶段，或是FIRE阶段，这是个可选的阶段）：
你需要多少收入来应付开销？
这个阶段通常你已经积累到了你的财富目标，还清了贷款，和储备了孩子的教育基金。你决定离开你的朝九晚五去追求你的其他爱好，让生活更充实。你还可以做一些兼职来挣点外快来应付你的开销，这样你就不用开始提取你的储蓄和投资。或是从储蓄和投资中取出少量（低过投资每年的自然增长），这样你的财富还不会减少。
第三阶段（退休阶段）：
你的财务提取策略是什么？
这个阶段你通常已经没有了收入，已经开始从你的股票/债券/现金储蓄/公积金/SRS里提取。你的财富开始减少（这很正常）。你不能提取的太快导致你还在世时财富已经取光，或是提取的太慢留下大笔财产和很多没有实现的人生梦想。
有什么其他大的财务支出要额外计划？
留给下代/下下代的财富，一年长的环球旅行？
这些问题理清之后，可以开始做财务规划了！你可以尝试自己做一个电子表格或是在网络上找一些财务规划的工具。记得和你的家人沟通所以大家保持一致。如果你自己不太熟练，也可以找一个专业的财务规划师帮助你；甚至即使你自己可以做规划，听听专业人士的意见也是有益的，他们可能可以帮你找到你规划中的盲点。
#financialgoal #financialfreedom
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