Chapter 2. Set Your Investment Goals

According to Yogi Berra, "If you don't know where you are going, you might wind up someplace else." Planning for long-term goals seems overwhelming to a lot of people, tedious to many others. Whatever the reason, plenty of folks forego planning and hope for the best—or claim they'll make do with whatever they end up with. However, by not planning, chances are good that you end up in one of two situations, neither one desirable. You may save too much and sacrifice your lifestyle today needlessly. Far more likely, you'll save too little and turn your golden years into something much less satisfying.

A financial plan means you have a shot at getting the lifestyle you want now and in the future. The good news: Creating a plan isn't tough.