This involves balancing head (financially prudent strategies) and heart (emotionally acceptable thresholds). You need to bridge the gap between what you can achieve financially with what you dream of doing.
Try to meet your objectives by setting a number of short, medium and long-term goals and prioritise them within each category.
Common goals include the desire to:
- Accumulate a sizeable estate to pass on to your heirs
- Increase the assets going to your heirs by using various estate planning techniques, perhaps including a lifetime gifts strategy
- Tie in charitable aims with your own family goals
- Accumulate enough wealth to buy a business, a holiday home, etc
- Be able to retire comfortably
- Have sufficient funds and insurance cover in the event of serious illness or loss
- Develop an investment plan that may provide a hedge against market fluctuations and inflation
- Minimise taxes on income and capital.