Do you have money goals?
You wouldn’t road trip from NYC to LA without a map. So, why drive blind toward your money goals? Here’s what a plan to reach money goals looks like.
Hear how to plan your financial roadmap
Create a long term plan using these money goals
On this episode of Queer Money®, we’re addressing a listener question (thanks, Alyssa!) around creating a long-term financial plan. We introduce the top excuses we hear for not having long-term goals and walk you through examples of the different kinds of financial goals, from immediate or daily objectives like cutting grocery expenses to 20-year plans to save for retirement.
We go on to discuss the results of the Queer Money Facebook survey on big financial goals, sharing the medium- and long-term targets that the members of our community are working toward. Listen in for our advice to Alyssa on building long-term financial security, reducing the risks associated with investing, and supporting organizations that provide services to the LGBTQ community.
The top excuses for avoiding long-term financial goals
- It’s too far away to think about
- Everything will work out on its own
- Who knows where I’ll be?
Examples of the different kinds of financial goals
- Immediate or daily = pay bills, cut expenses
- Short-term = save $500 for emergencies
- Medium-term = save down payment for a home
- Long-term = save for retirement
The results of the Queer Money Facebook poll on financial goals
- 17 pay off credit card debt
- 12 reach financial independence/retire early #
- 5 save for a big vacation
- 4 buy home
- 4 pay off student loan debt
- 4 retire on schedule
Our top 7 suggestions for Alyssa
- Max out 401(k)
- Max out Roth IRA
- Set up accounts to fund medium- and long-term goal
- Create a donor-advised fund to give back to the community
- Meet with a fee-only financial advisor to set investment strategy
- Put more money in investments
- Make sure cash in high-yield savings accounts
The value of securing SIPC insurance
- Protects securities up to $500K, cash up to $250K
- Safeguards against loss but not drop in value
How to reduce the risk associated with investments
- Diversify brokerage firms (use at least two)
- Don’t assume more risk than necessary
- Diversify among asset classes, e.g.: real estate