Comments on: Asking Why: The Purpose Behind your Financial Goals http://www.milliondollarjourney.com/asking-why-the-purpose-behind-your-financial-goals.htm Building Wealth through Saving and Investing Mon, 15 Mar 2010 03:38:18 -0400 http://wordpress.org/?v=abc hourly 1 By: used tires http://www.milliondollarjourney.com/asking-why-the-purpose-behind-your-financial-goals.htm/comment-page-1#comment-97457 used tires Sat, 08 Aug 2009 17:55:48 +0000 http://www.milliondollarjourney.com/?p=943#comment-97457 My financial goal is to able to live comfortably, and by my own means, and to live the type of life style that I want. As far as a reason... it's hard to explain since I am still young, so I will say this.... so I don't have to worry about whether I will have enough money to do the things I want to do. Till then, Jean My financial goal is to able to live comfortably, and by my own means, and to live the type of life style that I want. As far as a reason… it’s hard to explain since I am still young, so I will say this…. so I don’t have to worry about whether I will have enough money to do the things I want to do.

Till then,

Jean

]]> By: Mike http://www.milliondollarjourney.com/asking-why-the-purpose-behind-your-financial-goals.htm/comment-page-1#comment-97448 Mike Sat, 08 Aug 2009 17:21:45 +0000 http://www.milliondollarjourney.com/?p=943#comment-97448 Just a tip... I remember reading somewhere that one should not use the word "don't" or other negatives in a goal statement. For example, "I don't have a pension" could be "I want to have a good pension". Apparently it helps the psychology behind the goal, turning it from being fear-driven in to an aspiration. Just a tip… I remember reading somewhere that one should not use the word “don’t” or other negatives in a goal statement. For example, “I don’t have a pension” could be “I want to have a good pension”. Apparently it helps the psychology behind the goal, turning it from being fear-driven in to an aspiration.

]]> By: FrugalTrader http://www.milliondollarjourney.com/asking-why-the-purpose-behind-your-financial-goals.htm/comment-page-1#comment-96938 FrugalTrader Fri, 07 Aug 2009 01:16:55 +0000 http://www.milliondollarjourney.com/?p=943#comment-96938 link has been fixed! link has been fixed!

]]> By: Him http://www.milliondollarjourney.com/asking-why-the-purpose-behind-your-financial-goals.htm/comment-page-1#comment-96936 Him Fri, 07 Aug 2009 01:12:06 +0000 http://www.milliondollarjourney.com/?p=943#comment-96936 Your couch potato portfolio link doesn't work! Please fix it! Your couch potato portfolio link doesn’t work! Please fix it!

]]> By: Mark in Nepean http://www.milliondollarjourney.com/asking-why-the-purpose-behind-your-financial-goals.htm/comment-page-1#comment-96928 Mark in Nepean Fri, 07 Aug 2009 00:59:40 +0000 http://www.milliondollarjourney.com/?p=943#comment-96928 Good post. My financial goals are as follows: 1) own our home in 15 years. 2) contribute $5,000 to RRSPs each year, for the next 20 years. 3) try to (always) hold $10,000 in an emergency fund. 4) save $5,000 to travel to europe, other countries each year. It's all about balance. Life is short, you could be gone tomorrow.... On the topic of the couch potato strategy - no commission-based FA would promote that. Besides, if you know abou this strategy, why are you going to an FA in the first place??? Cheers! Good post.

My financial goals are as follows:
1) own our home in 15 years.
2) contribute $5,000 to RRSPs each year, for the next 20 years.
3) try to (always) hold $10,000 in an emergency fund.
4) save $5,000 to travel to europe, other countries each year.

It’s all about balance. Life is short, you could be gone tomorrow….

On the topic of the couch potato strategy – no commission-based FA would promote that. Besides, if you know abou this strategy, why are you going to an FA in the first place???

Cheers!

]]> By: Ms Save Money http://www.milliondollarjourney.com/asking-why-the-purpose-behind-your-financial-goals.htm/comment-page-1#comment-96870 Ms Save Money Thu, 06 Aug 2009 20:22:11 +0000 http://www.milliondollarjourney.com/?p=943#comment-96870 Agree - there is always a reason why we strive for different goals. AK - I remember that post - It was definitely a good post. Agree – there is always a reason why we strive for different goals.

AK – I remember that post – It was definitely a good post.

]]> By: Michael - Fat Loss Tips http://www.milliondollarjourney.com/asking-why-the-purpose-behind-your-financial-goals.htm/comment-page-1#comment-96856 Michael - Fat Loss Tips Thu, 06 Aug 2009 18:50:14 +0000 http://www.milliondollarjourney.com/?p=943#comment-96856 @Kathryn et al, Thanks for the answer. I suspected as much. Not sure if this has been covered here at MDJ but a "how to convert to a potato/index style of investing from traditional MFs" would be interesting. It can seem like a daunting task when your portfolio includes leveraging, RRSPs, labour-sponsored funds, and other details. @Kathryn et al,

Thanks for the answer. I suspected as much.

Not sure if this has been covered here at MDJ but a “how to convert to a potato/index style of investing from traditional MFs” would be interesting.

It can seem like a daunting task when your portfolio includes leveraging, RRSPs, labour-sponsored funds, and other details.

]]> By: AK http://www.milliondollarjourney.com/asking-why-the-purpose-behind-your-financial-goals.htm/comment-page-1#comment-96844 AK Thu, 06 Aug 2009 16:23:55 +0000 http://www.milliondollarjourney.com/?p=943#comment-96844 Adam: You should check out Kathryn's post from July 16th-Financial Regrets, it was really helpful in bringing to light the importance of balance, and just letting loose (sometimes!) Adam: You should check out Kathryn’s post from July 16th-Financial Regrets, it was really helpful in bringing to light the importance of balance, and just letting loose (sometimes!)

]]> By: Adam http://www.milliondollarjourney.com/asking-why-the-purpose-behind-your-financial-goals.htm/comment-page-1#comment-96837 Adam Thu, 06 Aug 2009 15:48:23 +0000 http://www.milliondollarjourney.com/?p=943#comment-96837 Funny, I seem to be in a different place these days. Once I trimmed the financial fat from my life and got on a path of saving, I found that I started to feel a slave to these things. I gave myself an incredibly hard time for straying even a touch, over using my cell phone etc. What I have discovered is that I was also motivated by the security this path will build, but I have also found I am trading some happiness for that. I don't love my job, at all, it pays very well which is the other problem... I start to feel afraid of making a leap in fear of falling of my finacial path. A post about striking a balance would be a great topic. Are some of you feeling like you have your wings pinned down in order to stay the financial course at the sacrifice of some happiness? Funny, I seem to be in a different place these days. Once I trimmed the financial fat from my life and got on a path of saving, I found that I started to feel a slave to these things. I gave myself an incredibly hard time for straying even a touch, over using my cell phone etc.

What I have discovered is that I was also motivated by the security this path will build, but I have also found I am trading some happiness for that. I don’t love my job, at all, it pays very well which is the other problem… I start to feel afraid of making a leap in fear of falling of my finacial path.

A post about striking a balance would be a great topic. Are some of you feeling like you have your wings pinned down in order to stay the financial course at the sacrifice of some happiness?

]]> By: craig http://www.milliondollarjourney.com/asking-why-the-purpose-behind-your-financial-goals.htm/comment-page-1#comment-96835 craig Thu, 06 Aug 2009 15:40:43 +0000 http://www.milliondollarjourney.com/?p=943#comment-96835 You have to have a purpose behind your savings and ask yourself the basic questions. This way you can keep organized, set a plan and keep yourself motivated to achieve your goals. You have to have a purpose behind your savings and ask yourself the basic questions. This way you can keep organized, set a plan and keep yourself motivated to achieve your goals.

]]> By: Kathryn http://www.milliondollarjourney.com/asking-why-the-purpose-behind-your-financial-goals.htm/comment-page-1#comment-96832 Kathryn Thu, 06 Aug 2009 15:17:31 +0000 http://www.milliondollarjourney.com/?p=943#comment-96832 FP: Yes, that's it. Clearly someone served me decaf this morning. A commission based financial advisor would have no reason to suggest a couch potato portfolio. FP: Yes, that’s it. Clearly someone served me decaf this morning.

A commission based financial advisor would have no reason to suggest a couch potato portfolio.

]]> By: Four Pillars http://www.milliondollarjourney.com/asking-why-the-purpose-behind-your-financial-goals.htm/comment-page-1#comment-96830 Four Pillars Thu, 06 Aug 2009 14:59:20 +0000 http://www.milliondollarjourney.com/?p=943#comment-96830 Commission based financial advisor? Commission based financial advisor?

]]> By: Kathryn http://www.milliondollarjourney.com/asking-why-the-purpose-behind-your-financial-goals.htm/comment-page-1#comment-96828 Kathryn Thu, 06 Aug 2009 14:46:40 +0000 http://www.milliondollarjourney.com/?p=943#comment-96828 CF: You're right. As soon as my time limit to edit ran out I realized my mistake. I meant the type that get paid per investment rather than fee based. A fee based advisor is the better kind to use to avoid a conflict of interest. Is there a name for the non-fee based financial advisor? CF: You’re right. As soon as my time limit to edit ran out I realized my mistake. I meant the type that get paid per investment rather than fee based. A fee based advisor is the better kind to use to avoid a conflict of interest.

Is there a name for the non-fee based financial advisor?

]]> By: cannon_fodder http://www.milliondollarjourney.com/asking-why-the-purpose-behind-your-financial-goals.htm/comment-page-1#comment-96827 cannon_fodder Thu, 06 Aug 2009 14:39:41 +0000 http://www.milliondollarjourney.com/?p=943#comment-96827 Kathryn, Perhaps it is semantics, but wouldn't a fee based financial advisor who you simply pay for their time (e.g. review your entire financial statements and provides a report for a flat fee either based on time or the value of your investments) be amenable to recommend something that is not a conflict of interest? Kathryn,

Perhaps it is semantics, but wouldn’t a fee based financial advisor who you simply pay for their time (e.g. review your entire financial statements and provides a report for a flat fee either based on time or the value of your investments) be amenable to recommend something that is not a conflict of interest?

]]> By: Kathryn http://www.milliondollarjourney.com/asking-why-the-purpose-behind-your-financial-goals.htm/comment-page-1#comment-96826 Kathryn Thu, 06 Aug 2009 14:34:11 +0000 http://www.milliondollarjourney.com/?p=943#comment-96826 Michael: Great question. There is no reason a fee based financial advisor would ever suggest a couch potato strategy. The fees are too low. One of my pet peeves about the financial industry is that financial advisors make money off their clients investments. It's a conflict of interest when their goal is to get people to sign up for (high fee) investments rather than considering the overall goals / financial security of their clients. Michael:

Great question. There is no reason a fee based financial advisor would ever suggest a couch potato strategy. The fees are too low. One of my pet peeves about the financial industry is that financial advisors make money off their clients investments. It’s a conflict of interest when their goal is to get people to sign up for (high fee) investments rather than considering the overall goals / financial security of their clients.

]]> By: Dave http://www.milliondollarjourney.com/asking-why-the-purpose-behind-your-financial-goals.htm/comment-page-1#comment-96824 Dave Thu, 06 Aug 2009 14:18:50 +0000 http://www.milliondollarjourney.com/?p=943#comment-96824 My own financial goals are based around freedom: to do what I want, and not worry about an obligation to an employer or colleagues. I think that's a lot like staying in shape, as well: you're not constrained by fitness, and have the energy to do things you otherwise wouldn't. I like the security as well, and that's why I tend toward a conservative passive investing approach. The Couch Potato is the way to go! My own financial goals are based around freedom: to do what I want, and not worry about an obligation to an employer or colleagues. I think that’s a lot like staying in shape, as well: you’re not constrained by fitness, and have the energy to do things you otherwise wouldn’t.

I like the security as well, and that’s why I tend toward a conservative passive investing approach. The Couch Potato is the way to go!

]]> By: Michael - Fat Loss Tips http://www.milliondollarjourney.com/asking-why-the-purpose-behind-your-financial-goals.htm/comment-page-1#comment-96821 Michael - Fat Loss Tips Thu, 06 Aug 2009 14:09:28 +0000 http://www.milliondollarjourney.com/?p=943#comment-96821 Kathryn, very thoughtful post. This may be a stupid question that has been answered in other posts but I have to ask it: Will a financial adviser ever suggest the "couch potato strategy" as a viable option? If they do, are they just shooting themselves in the foot b/c they are missing out on your money? As a financial coach I'm sure you've probably been asked this question. Thanks in advance... P.S. Your potato link does not work :) Kathryn, very thoughtful post.

This may be a stupid question that has been answered in other posts but I have to ask it:

Will a financial adviser ever suggest the “couch potato strategy” as a viable option?

If they do, are they just shooting themselves in the foot b/c they are missing out on your money?

As a financial coach I’m sure you’ve probably been asked this question. Thanks in advance…

P.S. Your potato link does not work :)

]]> By: DividendMan http://www.milliondollarjourney.com/asking-why-the-purpose-behind-your-financial-goals.htm/comment-page-1#comment-96816 DividendMan Thu, 06 Aug 2009 13:43:07 +0000 http://www.milliondollarjourney.com/?p=943#comment-96816 My financial goal is to have enough passive income so I don't have to 9-5 to survive. My financial goal is to have enough passive income so I don’t have to 9-5 to survive.

]]> By: Kevin Beitel http://www.milliondollarjourney.com/asking-why-the-purpose-behind-your-financial-goals.htm/comment-page-1#comment-96813 Kevin Beitel Thu, 06 Aug 2009 13:28:19 +0000 http://www.milliondollarjourney.com/?p=943#comment-96813 The security behind having sufficient funds reduces the stress in trying to provide for my family.... The security behind having sufficient funds reduces the stress in trying to provide for my family….

]]> By: Four Pillars http://www.milliondollarjourney.com/asking-why-the-purpose-behind-your-financial-goals.htm/comment-page-1#comment-96807 Four Pillars Thu, 06 Aug 2009 12:52:23 +0000 http://www.milliondollarjourney.com/?p=943#comment-96807 My main financial goal is to become more financially independent. By paying off my mortgage, working towards maxing my rrsp, minimizing lifestyle inflation and having different income streams helps with that goal. My main financial goal is to become more financially independent. By paying off my mortgage, working towards maxing my rrsp, minimizing lifestyle inflation and having different income streams helps with that goal.

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