Skip to main content

Investing 101 – Setting clear goals

Having a deep understanding of your financial goals provides the foundation on which you can build a detailed plan to achieve those goals.

Hey there. Welcome to MD’s Investing 101 series. These short videos are designed to help investment beginners better understand the basics of investing.

Let’s start with what you are trying to achieve.

So, what are your financial goals?

You might have one major goal—or you might have a few.

A deep understanding of your goals provides the foundation. Then you can develop a detailed financial plan to improve the probability of achieving those goals.

Your investments, one part of your overall financial plan, should be aligned with your goals and objectives.

Here's how to get started down that path….

The first step is to figure out what's important to you and write it down. You might want to involve your spouse, other family members or even a professional like a financial advisor.

Don’t be afraid to break it down into detail. For example, when it comes to deciding on a home, do you want to rent or buy? In what neighbourhood? When do you want to move? How much can you afford? Have you estimated other associated costs? How much have you saved for a down payment?

The second step is to understand your current cash flow situation. How much can you save towards your goals now? How much do you need to save to reach your goals within the desired time frame?

Here, it’s important to keep all of your goals in mind. Sure, that 3,000 square foot luxury house sounds nice, but can you afford that and stay on track towards your other goals?

The third step is to create your action plan and execute it.

Whether it’s a new home, saving for a child’s education or your retirement, now you know how much you need and when you need it.

With this information and your personal preferences about risk tolerance and liquidity needs, you can determine the appropriate investment strategy to get you there.

Whatever your financial goals, the MD Financial Suite offers a range of solutions to help you meet your goals, your way.

For more information about defining financial goals and designing a plan to achieve them, please contact a MD Advisor. He or she will be happy to answer any questions and tell you more.