Whether you realize it or not, you are the CEO of your personal finances. As such, you are fully responsible for the realization of your goals and attainment of your future financial security. As CEO, I believe you should develop a vision and mission statement and use it to guide your investing actions.
Vision Statement
This defines your dreams, goals, what you are going to do and want to do. A vision statement is intended to motivate personnel toward a common goal. With investing it is about money, wealth, cash flow and security. In your case you are the “personnel.”
Following is a listing of some visions that can be adopted by you. Which ones are yours?
□ Be financially secure
□ Become rich or richer
□ Have no money pressures or worries
□ Live comfortably in same style for rest of life
□ Have adequate cash flow to accomplish goals
□ Enhanced lifestyle
□ Leave money for my children
□ Have money for my children (or grandchildren) to go to college
□ Accumulate money to be able to buy a vacation house
□ Become a philanthropist [we should all try for this]
Mission Statement
The mission statement supports your vision. It tells how you plan to do it.
□ Define goals and create a time horizon to attain goals
□ Invest in a reasonable way to get needed returns
□ Manage risk
□ Diversify investments
□ Understand what “diversify investments” really means
□ Make as much as possible without risk
□ Get reasonable returns and not lose what I have
□ Don’t take foolish risks
□ Understand how I can make money or lose money on a particular investment
□ Be able to survive any losses
□ Have all investment costs quantified, spelled out fully and be transparent
□ Get best available advisors
□ Understand that I am not “average;” I am not part of a “grouping;” but I am “me” who is an individual with all the life experiences, fears, dreams and hopes I’ve had to date
□ Learn as much as I can about what investments are suitable for me
□ Make sure I cannot lose more than the amount I invested
Use the above as a guide. You can supply your own items, but whatever you do, develop a plan and then stick to it. Act like the CEO that you are.
If you have any business or financial issues you want to discuss please do not hesitate to contact me at [email protected] or fill out the form below.
Contact Us
Contact Withum’s team of professionals if you have any questions or concerns.
