Goals gone wild

By Finbar Garcia LUTCF, FSS, MFA

“For this is Christmas, what have you done. A New Year is coming, and your goals are all but none.” Okay, so let’s get real here, where did this year go! Did you achieve those goals you wrote down in January? If not, what was the cause? If you did, then great, keep planning for next year and build from there.

Some persons plan in January, drop off by February, then wonder what happened by the end of the year. The answer is simple….procrastination.

There is a huge cost to procrastinating. Those people who plan, prepare and stick with their goals, always enjoy the better of both worlds. They invest early, and reap the rewards at the end, at times in a shorter period than those who wait. Let’s look at what happens when you procrastinate.

Retirement: When you procrastinate, you will have to invest more money now to get the same results you had started years ago. So, for example, a 30-year-old male who wants to retire at age 65, will have 35 years to invest and accumulate enough money to get a certain pension.

Let’s say his initial investment was $1000 per month to get a pension of $3000 at age 65. If he waits until age 35, then he only has 30 years to accumulate that same fund. However, he will have to invest $1500—an increase of $500 more to get the same pension.

Why suffer yourself and create more issues, when you will be in a better position investing earlier and even retiring sooner than later.

Life and Critical Illness Insurance: We all know that we buy insurance for our health but pay for it with money. Investing in Life and Critical Illness Insurance from an early age will guarantee you a lower premium as your health will most likely be great.

Some persons take the risk, like Russian roulette with their lives. They try not to spend too much money on insurance, hoping that they won’t get critically ill or die too soon, however, as soon as they get some type of medical scare, they suddenly seek insurance, not realising that there are two major issues awaiting them.

{1} They are much older, and the premiums will be more, at a minimum 50 per cent.

{2} Their current health may not qualify them for the insurance, thereby causing further hardship on their family. They may even have to pay an extra premium because their health is borderline with the underwriting guidelines. They are being, “Penny wise, but pound foolish.”

First home: Buying your first home is considered one of the best investments any person or couple could make. Planning for this you will need to consider the following.

{1} Your current age and retirement age, as the mortgage will be based on the working years.

{2} Your income, as your debt servicing ratio should not be more than 40 per cent.

{3} Your health. Financial institutions will want to secure their interest in the loan first, so, your ability to repay for the period based on your health may cause some concern.

{4} Insurance on your life and that of your spouse. Securing enough coverage early will allow you and your spouse to enjoy a much lower premium years before, rather than waiting for the mortgage to be closed, then to secure the coverage. This could delay the final processing of your home, and you may or may not qualify for the insurance, again creating further delays for you and may even derail your dreams.

Having shared these, what are your plans for 2025? Are you going to continue with your procrastination or bring your goals into action?

I have seen many people suffer because of this—people who retired poor; people unable to secure the coverage needed who are critically ill, and in need of financial assistance, and of course, some still renting because of not planning earlier.

Don’t wait. Procrastination is the killer of dreams.

I wish all a very Merry Christmas and a bright and prosperous 2025.

God bless.

Call me for more information on planning your financial future. Send your questions to myfinancialadvisor2020@gmail.com or call 620-1185.