Do you dream of achieving true financial freedom? Start your journey towards your dream with our personal financial planning offering. Whether you are interested in getting a better understanding of your financial situation, trying to fi gure out what you can expect when you retire, or looking to help your children pay college fees; meeting your financial goals depends on the success of the investment approach you adopt today.
At NICO Asset Managers, we offer private wealth management and advisory services that provide tailored solutions to enable individuals and families meet their life goals and dreams that matter to them. We believe that every dream is possible, no matter how challenging. We also believe that every dream deserves a chance to be turned into reality. Our experience has shown that attainment of dreams and goals requires both your commitment and the help of an experienced coach to work with you. As your financial planning coach, we commit to helping you turn your dreams into reality.
In these series of articles, we will over the next five weeks take you through our five-step goal-based investment management process.
1. START SMART: Define and prioritise your goals
The first step towards achieving investment goals lies in having clearly defined financial objectives. It is important to set realistic goals which align with your financial situation and the time available. Setting and defining your investment goals helps you to gain clarity on what is important to you as a person since financial goals go together with life goals. We, therefore, work with you to define your financial goals and attitude towards investing. We discuss your life goals, personal circumstances, dreams and concerns for you and your family. As we get to know you better, we are able to recommend strategies that can work for you.
At NICO Asset Managers, we follow a five-step goal-based process to help you meet both your short-term and long-term goals. We categorise your goals according to your investment time-frame in order to align with the appropriate investment avenues. Your goals can be short-term (up to 1 year), medium term (2 to 5 years), or long-term (more than 5 years). Similarly, investment avenues appropriate to your goals may be short-term (e.g. Fixed Deposits and Treasury Bills), medium-term (Treasury Notes and Bonds) or long-term (Treasury Bond and Shares).
The time horizon is not the only factor that comes into play when selecting an investment plan. Other factors such as your attitude towards investment risk, your immediate cashflow needs and other circumstances unique to you also play a role in developing an appropriate investment plan.
To put this into context, let’s take Estelle who is 36 years old. Estelle is a mother of twins, Tim and Mat aged 10. Estelle has a stable job, while her husband Max runs a small business which provides unstable income.
Estelle does not have any significant savings as she frequently spends any savings that she accumulates within a year. Estelle’s financial habits are very common to a lot of people who do not define and prioritise their goals.
By working with NICO Asset Managers, we helped Estelle to define her major financial goals; to pay for her children’s college fees starting in six years’ time and prepare for her retirement in 25 years. Further we worked with Estelle to understand her financial habits. We identified areas where she spends more money and where she can cut back in order to increase her savings to meet her goals. Estelle’s two main goals were clearly defined into time-frames and required amounts in order to align them to the right investment plan.
Investing can be likened to living life like an athlete, for an athlete to win his race, he must follow several steps. Step one entails defining his objective and assessing his preparedness. Once the goal is clear, the pain and sacrifice of pursuing the goal becomes worthwhile. Investing for your future works in exactly the same way. Just like an athlete needs a good coach, you also need a good coach to guide and support your investment journey. Let us help you get started with your journey to achieve your investment goals one step at a time. An investor without an investment objective is like a traveler without a destination.
The next step in our goals-based process, which we will cover next week, is understanding your attitude towards investing.