BADM*4070 DE Chapter Notes - Chapter 3: Goal Setting
Document Summary
Chapter 3 - setting goals & the financial planning process. A goal isn"t a goal if its too vague and doesn"t have deadlines. A nancial goal must posses two attributes: the goal must be able to be measured in precise dollar gures, and two, there should be a deadline for its completion. The nancial planning process: is the system of setting goals, taking action, and monitoring progress. This process has 4 main steps: goal setting, action plan, take action, feedback. When your goal become unattainable you either revise your goal or re-examine the plan to see if there are any changes that could be made to help you achieve your goal. Our goal of wealth available for retirement must equal the pv of all of the consumption during retirement. Goals should be reviewed and revised periodically as the course of time can change what matters most to people.
