This section is the part where you write down your wants in life before making final decision to trade online FX. Each individual and family is unique; the 4 specific goals to achieve in your life are unique to you. However, there are some goals, which apply to just about everyone and your list could probably be more detailed and longer.
Personal risk protection
To protect against risk you could adopt two means. The first is to create an emergency fund to protect the individual or family against unexpected situations like unemployment, health care costs not covered by insurance, or property losses not covered by insurance. The second thing is to purchase adequate insurance. The best mix of insurance will cover: disability, health, life, property and casualty, and your automobile.
Financial security
The next thing is to provide for the financial security of yourself and family. Including other dependents like elderly parents you have to take care. Funding in part or in full the tuition needs of your children and other special things for children like first homes, cars, etc.
Comfort and Lifestyle
Another goal many people have is a comfortable lifestyle. By this, we mean travel, vacations, relaxation, second home, membership in country club, entertainment, new home or home improvements etc.
Retirement fund
A fourth goal all people have is a comfortable retirement. People want to maintain the same standard of living in retirement that they had while they were working. They want to maintain their financial independence during retirement and if possible retire early. It is also important to shield your assets in retirement against a medical emergency.
Planning your estate
The last goal most people have is estate planning. Regardless of circumstances, almost all people want to provide for an orderly transition of their assets. The fallacy is that only people with large estates need to plan. The reality is that almost all people need some type of estate planning.
It's not enough to establish these broad goals without specific time frames, amounts, and other details. For instance, with regard to the emergency fund, one would want to establish an emergency fund with $15,000 in it two years.
