In our lives, there are often different needs for each age range, such as teenagers wanting to have a pair of cool shoes. When having their own salary, they want a car, want to go abroad. When the position is stable, they want to create a family, have a house. Importantly, the goal is to collect money for retirement.

Investing in stocks or mutual funds is a financial plan that has an opportunity to generate more revenue continuously. However, both assets are only financial instruments to reach the desired goal only.

Real financial planning is to set the goals appropriately and invest in accordance with their own style and needs and find investment ways to achieve the goal. One important technique for success is to set investment goals over time.

The nature of short-term financial goals is to meet personal needs such as tourism, save for car down payment, so the investment portfolio is in the range of 1-3 years.

For example, Mr. A., 25 years old, working in a private company, the salary of 27,000 baht, intended that the next year will collect 30,000 baht to go down the car.
While Mr. B. was 27 years old. Salary 30,000 baht. Planning that the next 3 years will collect 50,000 baht to travel to Japan.

Because it is a collection of money to meet personal needs, therefore, the goal set must not affect the financial status or spending in daily life. Importantly, do not affect financial planning for retirement.

For investment in accordance with short-term needs should focus on safety.
Therefore, the investment portfolio should be careful. Focus on investing low-medium risk assets, highly liquid which expect an average return of about 5% per year.

Such as mutual funds, about 20% of funds, 30% fixed-income funds, 40% mixed funds and about 10% equity funds.

To get 30,000 baht according to the target, Mr. A. must invest 2,444 baht per month for 12 months and must receive a 5% return. Mr. B. must invest 1,291 baht per month for 36 months (3 years) and arrange investment portfolios to get an average return of 5% per year to collect 50,000 baht.
  

Medium-term financial goals often add convenience to life or to improve the lives of better living, such as having a single house or marriage; therefore, the collection goal is approximately 3 - 7 years.

(I would like to give examples of Mr. A and Mr. B. as the same, but allow the two to increase the age for 1 year)

Such as Mr. A, age 26, the salary of 28,500 baht, intended that the next 5 years (at the age of 30 years) will collect 100,000 baht for a single house. For Mr. B., age 28, salary 31,500-baht, plan to collect 500,000 baht for a wedding in the next 6 years (at the age of 33 years).

Because it is a collection of money that takes a long time; therefore, able to invest in assets with medium to high risk and emphasize highly liquid assets. Therefore, suitable investment should focus on various types of mutual funds, such as mutual funds, about 10% debt, mixed funds, about 20%, mutual funds of about 50%, and invest around 20% stock dividends. Expect an average return of about 8% per year.

In order to get 100,000 baht according to the target, Mr. A must invest 1,775 baht per month for 48 months (4 years) with an average annual return of 8%. While Mr. B. collected about 5,433 baht per month for 72 months (6 years), with an average return of 5% per year to collect 500,000 baht.

In the section of Mr. A., after the first year that the car down payment has been completed as planned. In the next year, no need to save money for another car down. Therefore, the money collected in each month will be the only goal for down payment for home (1,775 baht). While Mr. B., since the goal of collecting money to go to Japan, is still there causing the money to be invested for a total of 6,724 baht per month (investment to travel to Japan 1,291 + investment for wedding 5,433 baht).

If talking about a long-term financial plan, it means financial planning for retirement. Therefore, the investment period depends on the demand for retirement, for example, now 30 years old, want to retire at 60 years, indicating that there are 30 years of saving time.

Financial planning for retirement is more important than short and medium-term. Because it is important for living during retirement. Everyone must plan carefully and clearly to achieve the goal.

(I would like to give examples of Mr. A and Mr. B. as the same, but allow the two to increase the age for 1 year)

Mr. A, 27 years old, 30,000-baht monthly salary, plans to retire from work at the age of 60 and go to live in the provinces and want to have 25,000 baht per month and expect to live until 85 years. Means that will live after retirement for 25 years or 300 months. Means that before retirement must have at least 7,500,000 baht (25,000 times 300)

Mr. B., 29, is planning to retire from work at the age of 60. He wants to have 30,000 baht per month but is expected to live until 80 years, so must have at least 7,200,000 baht before retirement.

Since it is a long-term financial plan, it can be invested in high-risk assets. Mr. A and Mr. B. can arrange investment portfolios through RMF funds that have the policy to invest in 30% stocks, mixed funds, 20%, mutual funds 20% and another 30% invest in stock dividends. Which expect an average return of about 10% per year, etc. (then both adjust the portfolio to suit the increasing age range by gradually reducing the proportion of higher-risk assets)

Suppose Mr. A. decided to collect money for retirement from the age of 27 years to 60 years of age (34 years or 408 months). If the financial target is 7,500,000 baht, it means that the salary must be kept at 2,190 baht per year with an average return per year. 10%

Likewise, Mr. B. collected money for use after retirement from the age of 29 years to the age of 60 years (32 years or 384 months). If the financial target is 7,200,000 baht, it means that the amount must be kept at 2,585 baht with return average 10% per year.

Since Mr. A still must keep the house down payment until the age of 30 years, therefore, the age range from 27 to 30 years must be collected at 3,965 baht (the money collected down the house 1,775 baht + 2,190 baht for retirement) and since the age of 31 years will leave only the money that must be collected for retirement.

As for Mr. B. still must collect money to travel to Japan for 1 year and the wedding for another 5 years. Therefore, at the age of 29 must collect money to collect 9,309 baht (money collected for travel to Japan 1,291 baht + money for wedding decoration 5,433 baht + Storage for retirement 2,585 baht)

Can see that if you want to succeed from short-term, medium- or long-term financial planning. The important thing is to have clear goals considering the risk diversification and practice with the discipline to help make investment more efficient and successful.