Financial Foundations
IN THIS LESSON
Financial needs evolve. From funding education to starting a first job, or purchase their first home, each life stage brings new financial responsibilities. Begin by assessing your current needs and future goals to determine how your investment strategy should adapt:
Revisiting Your Risk Tolerance
With each passing year, your risk tolerance may change. When you are young and investing for the long-term, you may have been comfortable with a more aggressive investment approach to capitalize on long-term growth opportunities. However, as you approach a goal, you may prefer a more conservative strategy to protect against market volatility. Regularly reassess your risk tolerance and adjust your investment portfolio accordingly.
Tweaking Your Asset Allocation
At each life milestone, consider adjusting your asset allocation to align with their changing financial goals. For example, if you’ve been primarily invested in stocks to maximize growth potential, you may gradually shift towards more conservative investments.
Tailoring Your Contributions
At different phases of your life, your contributions may be different. As you set goals and approaches key milestones, you may need to adjust your contributions to their education savings or investment accounts. Evaluate whether you’re on track to meet their financial needs and make any necessary adjustments to ensure you’re adequately funded for your next life stage.
Seeking Professional Guidance
If navigating the complexities of adjusting your investment strategy feels overwhelming, don’t hesitate to seek professional guidance. As a Registered Investment Advisor, Pelican can help you assess your current financial situation, identify areas for adjustment, and develop a customized investment plan tailored to your evolving needs.