We talk a lot on this blog about financial goals. The financial press is full of articles about how to beat the market, how to cut your costs or how to identify stocks for growth. Those are not goals and can often be distractions. Unless you’re in it for entertainment or the thrill of playing a game, your goal is not to beat some index or to find a stock that triples. And playing that game often leads to failure.
The actual goal for most people who invest (or save) can be defined as “Financial Freedom.” Another way of putting it is “Walk-Away Freedom.” The ability at some point in your life to be able to walk away from work and devote your time to what you would really like to do. Some people are fortunate. They enjoy the job they are doing and see no reason to change. Many others would like to change the way they spend their time. Let’s call that change retirement.
Financial freedom is what most people want to have at retirement. It doesn’t have to be at age 65. Retirement is the point in your life where you no longer need the income from your job and can live on your investments or other income streams like social security, pensions, annuities, rents, royalties, etc.
When we speak with our clients or interview a prospective client our discussion is always on their goals. What makes them financially independent? At what stage of their life will they have walk-away freedom? The focus is never in beating an artificial benchmark like the S&P 500 or the DJIA because those are distractions. These indexes don’t care about you. We do. That’s why so many people have asked us to help them manage their money. We help them chart a path to their personal financial freedom.
What’s your goal for “Walk-Away Freedom?”