PRISM: Prioritizing Your Goals

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Lesson 2: Why Start with Goals?

  • 1.  Lesson 2: Why Start with Goals?

    Posted 10-05-2021 11:23
    Edited by Jenna Brashear 10-06-2021 14:49
    Why are goals the centerpiece of the PRISM Wealth-Building Process? Because it's always easier to stick with a plan when there is something you are trying to achieve. Being clear about your goals changes your perspective and how you approach your portfolio. 


    Reflect
    Accounting for your short-term and long-term spending can help you plan for retirement as well as other investment goals. Putting your goals first can help you make smart decisions. If you've already planned for retirement, think about whether or not you want to grow your generational wealth, contribute to charities, or help fund your grandchildren's education. These are specific goals to consider when planning for both short and long-term savings.

    Engage
    Share one short-term and one long-term goal that you hope to achieve. What strategies have you used in the past to plan for both types of goals? Has this worked for you or are you looking for a more effective action plan? Let us know in the comments by clicking "Reply" on the right side of this discussion post.



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    Jenna Brashear
    AAII Community Manager
    Chicago, IL
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  • 2.  RE: Lesson 2: Why Start with Goals?

    Posted 10-15-2021 19:19
    My short term goal is to purchase a new car which I need for several reasons. I plan to save for it and trade my present vehicle within the next two years. At the present time, I am during my research and keeping my present vehicle in the best condition as possible.  My long term goal is to prepare for my long term care if I need it ,if I do not, my heirs will have an inheritance that will help them in retirement.

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    William Wise
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  • 3.  RE: Lesson 2: Why Start with Goals?

    Posted 10-19-2021 12:12
    My short term goal is rebalancing my portfolio to generate more income. My long term goal is to continue increasing overall portfolio value .

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    EARL WASHINGTON
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  • 4.  RE: Lesson 2: Why Start with Goals?

    Posted 10-16-2021 21:41

    I retired two years ago and still do some part-time work.  Whenever I withdraw funds from my investments, if I have money left over at the end of the month, I put the excess back into investments.  Don't know if this is smart or not.  Once my wife and I get into the groove of what it is like to be retired, I may decide to spend more on treats.

    Oh yeah, I gave up on my motorbike lust a couple of years ago.  Last bike imported new from Italy in 2016.  My daughter lives in Chicago and began calling my wife in 2017 saying that she was having panic attacks about dad being smeared on the roadway.  She had witnessed a motorcycle fatality on the Kennedy Expressway.  I figured it was worth causing my daughter emotional stress because of my stubborn ways.  I rode motorbikes since I was 15 but sold my Ducati to a young man who still appreciates the getting the bike.

    I'd like to get a "sports car" but don't want to look "pretentious" driving a real fancy car.  Plus the Porsche's that could float my boat are expensive to insure.  



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    KEVIN BALOG
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  • 5.  RE: Lesson 2: Why Start with Goals?

    Posted 10-19-2021 15:14
    Thank you to everyone who shared so far!

    It looks like many of you have recently retired and are thinking about saving up for both short- and long-term goals such as saving for a new car (short-term) or planning for in-home/facility care in the future (long-term). These are all excellent! Additionally, it sounds like many of you are eager to get a jump-start on planning for these short- and long-term goals. In the next few months, we are excited to teach you some financial building blocks to help make those goals a reality. 

    Please continue sharing your short- and long-term goals with us and respond to others if you have similar (or contrasting) objectives!

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    Jenna Brashear
    AAII Community Manager
    Chicago, IL
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  • 6.  RE: Lesson 2: Why Start with Goals?

    Posted 10-17-2021 10:06
    Recently retired. We need to set aside funds for end-of-life, etc. and I still drive a 2004 pickup. Will need funds to accomplish these goals in the next two or three years.

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    ROBERT TYSON
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  • 7.  RE: Lesson 2: Why Start with Goals?

    Posted 11-18-2021 19:26
    My wife and I have been retired for 6 years now, and have been fortunate in that the planning and saving we did while working has allowed us retire comfortably.  One of the best planning moves I made was to join AAII as a life-time member in the late 1970's.  The monthly publication provided us with a lot of good information which helped in our planning for retirement.

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    CHARLES CLARK
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  • 8.  RE: Lesson 2: Why Start with Goals?

    Posted 11-19-2021 11:18
    Hi Charles,

    That's wonderful to hear that you've enjoyed our monthly publication. As a beginning investor, I always find extremely helpful information about retirement planning in the Journal as well as the Individual Investor Update emails. We are happy to have you as a life-time member! Thank you for joining the PRISM Academy, we look forward to hearing your thoughts about the coursework as you progress through the various lessons.

    Have a wonderful weekend!

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    Jenna Brashear
    AAII Community Manager
    Chicago, IL
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  • 9.  RE: Lesson 2: Why Start with Goals?

    Posted 11-27-2021 21:49
    Interesting topic, I'm recently retired but have never once made a budget or goal to follow/achieve. After some thought maybe I kind of have had a goal and just didn't realize it but it all just came from the way I was raised on a farm. My single 'goal' has been just be frugal about spending so I can save/invest it.

    I've done well without goals and I can only say now that I hope to have enough for us to live decently on in retirement and leave the kids some money. A secondary shorter term goal I am pondering is figuring out if/how to give the kids money prior to our deaths when they have more need for it now with growing kids (grandkids.

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    MIKE SCHELLENBERGER
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  • 10.  RE: Lesson 2: Why Start with Goals?

    Posted 11-30-2021 10:40
    Hi Mike,

    I agree, before speaking to Charles and participating in the PRISM Academy, I didn't know how important it was to actually write down my goals and think about how much money it would take to fund them. Since participating in the various lessons in Step 1, I've come to realize that my goals have shifted and I need to prioritize one over the other, especially as I get older.

    Your goals are great: being frugal when saving and investing, continuing to fund retirement living/additional expenses, and leaving a legacy for your kids/grandkids. Lessons 5-7 will focus on how to account for the duration and funding of these goals. Please continue watching the videos, filling out the worksheets and engaging with the prompts!

    Thanks for sharing Mike!

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    Jenna Brashear
    AAII Community Manager
    Chicago, IL
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  • 11.  RE: Lesson 2: Why Start with Goals?

    Posted 12-22-2021 09:34
    My short term goal is to build our emergency savings fund to a level that both my wife and I find acceptable.  My long term goal is to begin saving 15% of our salaries towards retirement.

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    NATHANIEL WATSON
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  • 12.  RE: Lesson 2: Why Start with Goals?

    Posted 08-07-2022 10:08
    My goal is to build wealth for retirement. I am shooting for 50k but a 100k would be better.

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    Toby Bloom
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  • 13.  RE: Lesson 2: Why Start with Goals?

    Posted 10-13-2022 18:25
    My wife and I are both retired and live in a gated community.
    Our goals are related to what we want to do with our retirement
    We love to cruise, and to travel, and to go home once  a year to see family and friends.
    In our spare time we do what we can to stay active and healthy

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    JAMES SERENSON
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  • 14.  RE: Lesson 2: Why Start with Goals?

    Posted 11-20-2022 15:10
    Finally getting around to reviewing the Prism material. Still about 2 years away from planned retirement age. One short-term goal is to do several home maintenance projects. Longer-term goal is try to buy an electric car in about 4 years. Supporting our 2 young adult kids is also we care about.

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    JOSEPH CAMPO
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  • 15.  RE: Lesson 2: Why Start with Goals?

    Posted 11-20-2022 15:22
    I am still three to three and a half years till I hang my hat. My main goal is to have enough money to live comfortably when I retire in the Philippines. For me I need to have $50,000.
    I am doing this by maxing out my IRA every year and making the best investments possible.





  • 16.  RE: Lesson 2: Why Start with Goals?

    Posted 02-07-2023 15:09
    I too am recently retired.  I have been a member of AAII for many years since my mid thirties if memory serves.

    My short term goal would be to add $5k annually to our vacation budget.  My wife and I have been pretty frugal since the beginning of our marriage so she could stay home with the kids.  Once they were grown and on their own we haven't really change our lifestyle that much.   Used cars, dinners at home, and small vacations are still all the rage around here.  Adding more to the travel budget may just be the payoff we're looking for.

    Here's a long term goal I forgot to mention in lesson #1 - We would like to be able to move into an independent living community, assisted living facility, and/or a nursing home of our choice when necessary.  There's a nice one a few miles from here that has totally changed my mind on that regard.




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    RICHARD
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  • 17.  RE: Lesson 2: Why Start with Goals?

    Posted 05-19-2023 02:08

    Husband and I are 75. In good health.
    Long-Term Goals

                Health care –->   Leftover $ is inheritance for sons

                            Health care aide in our home    AND/OR

    Living in an independent or assisted living place     AND/OR

                            Living in a long-term health facility

    Medium- and Short-Term Goals

                Costs to visit family in CA, OR, WA & MN 

                House maintenance – repair termite damage, paint outside of house 

                Annual Finnish language-culture course for adults

    Travel 

    Give some $ to our adult sons when they need/could use it.

    Make charitable and political donations. 



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    Eloise Maki
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