3 Qualities of a Meaningful Goal

By
Mike Loo, MBA
April 11, 2018
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Not all goals are equal in their achievability. In fact, 92% of people don’t reach the goals they set.1 While goals can be difficult to achieve, they’re not impossible. However, the best way to set yourself up for success is to set meaningful goals.

A meaningful goal sets itself apart from a standard goal in three main ways.

  1. It’s Specific and Measurable

The more specific your goal, the more likely you are to reach it. According to one study, setting specific goals led to a higher performance 90% of the time.2 The reason for this is fairly simple: the clearer the path, the easier it is to follow it to the final destination.

I hear so many people tell me their goal is to save more, spend less, or build a retirement fund. The problem with these goals is that they lack specificity. Saving more could mean saving $10 per month or $1,000 per month. You can’t track your progress or know if you’re on track toward your goal if you haven’t specified it and you can’t measure your progress.

One of the first things I tell clients is to make their goals as specific as possible. For example, instead of “build a retirement fund,” you can specify it to “build a retirement fund of $100,000.” Finally, make it measurable—”build a retirement fund of $100,000 by age 45.”

  1. It’s Relevant to Your Life

A goal is only meaningful if you’re passionate about it. Those who meet their goals do so not just because they’re hard workers, but because they are passionate about what they want to achieve. Their goals reflect their values and interests, rather than being random or something they think they’re supposed to achieve in life.

For example, some clients tell me they want to build their savings account because they’ve been told that’s what they should do. While true, you likely won’t feel very inspired to save more if you don’t have a reason for it that makes sense for your life.

I tell these clients to think of what having a savings account would mean for them. Would they feel they could sleep better at night? Would a savings account mean they could go on an annual family vacation? If they build a savings account up to a certain amount, could they finally upgrade their unreliable and problematic car?

Whatever your goal, you should be passionate about it and it should be relevant to your life, not what you think you’re supposed to achieve.

  1. Frame it Positively

We’ve all heard about the power of positive thinking, and it translates to your goals, too. We are much more likely to work toward something we want to achieve or do rather than what we want to stop doing or don’t want.

For example, rather than a goal of “stop overspending” or “spend $200 less each month,” frame it in a positive light: “spend more mindfully” or “save $200 each month.” This can help you view saving as a good thing you’re supposed to do, rather than spending as a treat that you no longer should do. It’s easy to reverse any goal, so there’s no excuse not to!

Don’t Go it Alone

The process of setting a goal is just as important as the process of working towards it. Think of your goal as the frame of a house. You can’t build a stable home without the proper foundation and a clear blueprint.

If you’re struggling to achieve your goals or aren’t sure how to set ones that are meaningful, an advisor can help. As an independent financial advisor, my mission is to make a meaningful impact on the lives of my clients and the people they love. I help families make informed decisions with their money and pursue a strong financial future, from setting meaningful goals to guiding them along the path toward the finish line.

Contact me for a no-strings-attached meeting to discuss your goals, how to make them meaningful, and what strategies can help you pursue them. Call my office at (949) 221-8105 x 2128, or email me at michael.loo@lpl.com.

1 http://www.inc.com/marcel-schwantes/science-says-92-percent-of-people-dont-achieve-goals-heres-how-the-other-8-perce.html

2 http://psycnet.apa.org/record/1981-27276-001

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By
Mike Loo, MBA
June 6, 2018

Approaching retirement can sometimes be as overwhelming and nerve-wracking as the transition into your Golden Years. You may start reflecting on what you’ve accomplished thus far in life and what you envision still achieving.

As you near the finish line, here are four things to do in the last ten years of your career.

Create a List of Things You Want to Accomplish in Retirement

The first step is understanding your goals for your retirement. What lifestyle do you envision maintaining? Will you travel? Will you live in the same home? What will you do during the day? As much as you may enjoy golf, you may tire of doing it every day for weeks on end.

Creating a list of retirement goals gives you something to look forward to, and may even motivate you to save more aggressively to reach your retirement goals faster. For example, if you imagine enjoying plenty of family vacations in retirement, you may need to establish a vacation fund.

You may instead envision spending your time volunteering or enjoying hobbies, be it woodworking, gardening, or painting. Regardless of how you choose to spend your time, make plans for it. If you don’t, other family members may be planning out your time for you. For example, you may become the default caretaker for your aging parents, especially if your other siblings are still working. Or you may become the “full time” babysitter for your grandchildren because your children assume you aren’t doing anything all day.

Pay Off Debt

The less debt you have when you enter retirement, the better. Review all current debts you face and compare interest rates and balances. This can help you decide which to pay off first. Once you’ve eliminated credit card and auto debt, see how you can aggressively pay off your mortgage. Not having a mortgage could significantly reduce your monthly expenses and make a considerable impact on how quickly you deplete your savings.

Along with tackling debt, take care of the big-ticket items now, rather than delaying them. These include replacing your home’s roof or other expensive repairs, updating old appliances, addressing your long-term care needs, and keeping your car in good working shape. It’s ideal to do this now while you still have a paycheck rather than when you’re retired and trying to live off of your savings.

Plan Out Your Expenses and Create a Budget

A common question pre-retirees ask is, “will my income sources cover my needs in retirement?” A budget is helpful throughout life but can be particularly beneficial during retirement when your income may be more limited.

Start by creating a budget that includes your essential expenses (housing, healthcare, and food) and your discretionary expenses (such as traveling, entertainment, and dining out). With this list, match essential expenses with guaranteed income, such as setting aside your Social Security benefits to pay for your healthcare. Then, look at your other savings and income to cover your discretionary expenses.

If your projected expenses don’t match your income and savings, you’ll either need to reconsider your expenses or increase your retirement income. These 10 years leading up to retirement can serve as a “trial run” to help instill a higher level of confidence that you can live off a certain level of income once you retire.

Hire a Financial Advisor

How much should you contribute to your 401(k)? What types of investments make the most sense for your circumstances and goals? Often, it’s not until we face a significant decision or make a mistake when we realize that we weren’t equipped with the proper knowledge. And then it may be too late to find help or rectify any missteps we make.

A financial advisor isn’t just there to hand you a financial plan and set you on your way. Think of an advisor as your lifelong financial partner. He or she can provide education, objective advice, and ongoing guidance as you encounter new challenges and opportunities.  This could mean adjusting your strategies, or simply reassuring you of your progress. With education and a reliable partner available to answer your questions, you can feel empowered to make informed decisions.

Next Steps

You don’t have to go at it alone and plan for your retirement on your own. At this point in your life, you should work with an advisor who can help you create a personalized retirement roadmap and work through various retirement scenarios, not just help your money grow. As an independent financial advisor, I want to help you address your retirement questions and feel confident about your future. I can work with you to establish a retirement strategy that integrates your goals and needs. Take the first step by reaching out to me for a complimentary consultation. Call my office at (949) 221-8105 x 2128, or email me at michael.loo@trilogyfs.com.

By
Ahmed Ghulamali
September 26, 2017

What does retirement actually look like? Some people might say they will literally “turn in their papers”, go home, then putz around the house and tinker with projects for the rest of their life. Others might say they want to travel the world. Some might say they don’t actually want to “retire”, but would rather transition to work they are passionate about, without having to worry about what kind of income they receive. The bottom line is that we tend to have some idea of what we dream it to be. The problem is, there are factors that can contribute to turning our dreamy retirement into a complete nightmare.

Trying to predict that our retirement will end up being exactly as we have planned it to be is like shooting an arrow towards a bullseye as we are blindfolded. It COULD happen, but there are a lot of “what ifs” circling around our idea of a perfect retirement. For instance, what if we retire and expect to putz around the house doing projects for the rest of our life, and find that by week three we are bored out of our mind, yet we didn’t prepare or invest in doing anything different? What if we expected to travel the world, but before retiring, develop health issues that prevent us from being able to do so? The “what ifs” can be a real game changer, not only to what we get to do, but how we would be prepared to pay for it.

Here are some tips to consider when thinking about how to prepare for retirement:

Retirement vs. Financial Independence. Trying to decide now, at our current age, what retirement has to be can be quite stressful. Maybe we don’t have a clue what it should look like in regards to activities and how we will spend our time. So instead of trying to define what retirement might look like, maybe focus on working towards financial independence. Financial independence means over the course of a long-term, disciplined effort, we work with our advisors to help us make financial and protection planning decisions that lead to financial strength over time. Disciplined effort and long-term commitment are key factors when trying to build financial security. This might prove helpful with preparing for whatever retirement ends up looking like.

Planning before Investing. There are thousands of licensed financial professionals whom would love nothing more than to manage our assets by investing in the market. Many go into this with the sole goal of simply “growing assets”. They tend to focus on returns, and believe that we only want to hear that our investments are “going up” consistently. Seeing our account values “go up” is all the satisfaction they think we desire. And with that, they tend to feel like we are on track for retirement. BUT, this is not a guarantee. We can’t predict or control the markets, so this is an example of shooting that arrow blindfolded, hoping we land in the middle. Instead, consider focusing on what your assets need to DO. What job do our assets have? Knowing what the job is upfront will help us make more informed decisions not only on how to invest, but with what kind of risk we can afford to subject ourselves to. Risk management might prove just as critical as growing assets.

Start NOW! Financial planning for retirement could prove far more difficult if we wait to the last minute, vs. making effort starting now. It might seem daunting to think we have to “do everything at once”, but focusing on our future needs is just as important as focusing on our current needs. It might seem difficult to do everything at once, but that’s why working with a financial advisor who values planning prior to investing blindly might prove helpful.

We are all unique in what our lives and dreams are. And whether we are focused on exactly what we want retirement to be, or simply have no idea, the common theme is that the closer we are to having financial independence, the better chance we have of being more prepared. Financial independence shines the light on our options, which might help to make our dreams come true.  And just like when we were kids in a dark room, the nightmares tend to not go away until we turned on the lights!

Get Started on Your Financial Life Plan Today