When you’re driving these days, it’s pretty hard to get lost because your smartphone’s Global Positioning System (GPS) can get you just about anywhere. And as an investor, you can have a similar experience by employing another directional tool – a personalized financial strategy.
Let’s look at the parallels between your GPS and this type of strategy.
To begin with, your GPS pinpoints your exact location at the start of your trip – in other words, it tells you where you are. And when you create a financial strategy, your first step is to evaluate your current situation by answering these types of questions: What are your assets? How much do you earn? How much do you owe? How much are you contributing to your IRA, 401(k) or other retirement accounts?