The economic storm is not over, but there seems to be a light at the end of it. Federal Reserve Chairman Ben Bernanke issued a statement saying that the U.S. economy is stabilizing and will begin to rebound later this year, but the recovery will be slow and cautious.
So what does that mean for us? This is actually the perfect time to set your personal financial strategy so you are well positioned to obtain your goals and priorities once the market does recover.
The financial strategy process is based on you as an individual — you and your spouse, or your immediate family. Think about your life goals. Do you want to purchase your first home? Are you hoping to retire in the next few years? Once this is determined, you should analyze your portfolio and compare it to your current personal or household strategy. Is it aligned? Is your portfolio consistent with the life priorities you just laid out?
Surprisingly, many consumers and financial professionals have this backwards. They start by chasing the “best” investment, insurance and financial opportunities as opposed to chasing financial opportunities that are both “the best” and that fit their personal objectives.
You absolutely cannot build a foundation for financial success when you start with a product. You build and maintain wealth by choosing your personal strategy first, then looking at the financial products that will best support it.
Make it a priority to set your financial strategies now so you can successfully weather this economic storm and come out on top when it stabilizes.