What does financial freedom look like to you?
Morningstar conducted a survey to see what questions people thought were important to them
- To be better off than my peers
- To pay for personal self-improvement
- To experience the excitement of investing
- To start a new business
- To buy a house
- To help pay for my children education
- To stop working and do something i love
- To go on a dream holiday
- To relocate during retirement
- To care for my aging parents
- To give to charity or other causes i care about
- To feel secure about my finances now
- To leave an inheritance to my loved ones
- To retire early
- To pay for future medical expenses
- To not be a financial burden to my family in the future
The List Is the Thing Behavioral science shows that people can sometimes be strangers to themselves. Many investors are attracted to the level of personalisation of goals-based planning, and this approach is becoming more popular every day, but it hinges on investors really knowing their investment goals and being able to communicate them clearly.
Helping investors make good choices and develop plans that make long-term objectives possible should be one of a financial planner’s key missions, and Morningstar’s research found that master-list nudges might help guide investors toward the goals they really want.
Master lists may help investors identify their goals: The majority of people will change one of their self-selected goals after considering their master list.