One thing that we often reference in our work is having a plan, but what does that really mean? A financial plan is a comprehensive evaluation of financial condition that lays out assets, liabilities and the goals that are to be achieved. This is an intricate process, as the goals that are desired must be in the realm of possibility or the plan must be altered. From this point the goals and objectives can be set and the proper portfolio allocation can be achieved.

Despite having a plan, there will be obstacles along the way. Below are three of the many variables that you are likely to face over time.

  • Volatility: This is inevitable as markets gyrate and can cause changes in account value over time. Having a diversified portfolio can help mitigate gyrations.
  • Distractions: Distractions can come in many forms, but the end result is the same. Distractions can send investors down another path, whether this is chasing a hot new stock, a new investment vehicle or the “hot dot.”
  • Flexibility: At some point during the duration of the plan, changes may need to be enacted to help reach the ultimate goal. This may result in working longer, saving a little more, or adjusting the plan.

No two journeys are the same, as there will be fluctuations, distractions and changes along the way. This is why we are big advocates of having a plan and being prepared so that when the time comes, you are on the right path.

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