Failure to know where you want to go.

Researchers tell us that less than 5% of people have goals. The two most common reasons people give for not having set goals are:

They don’t know how to set goals.

  • They are afraid to set goals they can’t achieve.
  • The process of setting goals helps you choose where you want to go in life. By knowing precisely what you want to achieve, you know where you have to concentrate your efforts.

The first step in setting personal goals is to consider what you want to achieve in your lifetime. Lifetime goals gives you the overall perspective that shapes all other aspects of your decision-making.

To give a broad, balanced coverage of all important areas in your life, try to set goals in some of these categories:

  • Artistic: Do you want to achieve any artistic goals? If so, what? Career: What level do you want to reach in your career?
  • Education: Is there any knowledge you want to acquire in particular?
  • Family: Do you want to be a parent? If so, how are you going to be a good parent? Financial: How much do you want to accumulate by what stage?
  • Physical: Are there any athletic goals or do you just want good health into old age? Pleasure: How do you want to enjoy yourself?
  • Public Service: Do you want to make the world a better place by your existence?

Once you have decided your goals in these categories, assign a priority to them. Then review the goals and re-prioritize until you are satisfied that they reflect the shape of the life that you want to lead.

All of these areas are important, but for the purposes of managing your retirement plan the financial goals are the most important. Financial goals or investment objectives should be well thought out, be measurable, and have specific dates for achievement.