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I trust that you won’t say something like this! Unfortunately, investors were caught off guard again by advancing investment markets.

A 30 October 2009 article in Beeld by Neville Brand-Jonker describes how investors scrambled out of money market funds during the third quarter of 2009. R91 billion moved from money market funds to mainly asset allocation funds. Brand-Jonker commented that it seemed as if investors didn’t know where to allocate funds and trusted fund managers to do the job for them. He said that fund managers voiced their disappointment that ordinary investors again largely missed the upswing in the market.

It all began seven months ago and continued through October 2009 - the All Share Index (ALSI) of the Johannesburg Securities Exchange advanced more than 37% from March until the end of September. Mr Jeremy Gardiner form Investec Asset Management said that South African investors, just like their emerging market counterparts, didn’t trust the early upswing in the market. But why should they? Experts believed that the market would advance by 15% and then retrace. Unfortunately for investors, this did not happen.

We at Ultima have always believed that success as an investor is not achieved by the timing of markets. Rather, success comes through having a robust investment strategy and a correctly aligned asset allocation that’s closely monitored. Success over time will then be inevitable

Beleggingskundiges is dit eens dat dit haas onmoontlik is om deur tydsberekening die markte reg te voorspel. Die artikel hieronder wat op 30 Oktober 2009 in Beeld se Sake afdeling gepubliseer is toon weereens hoe onvoorspelbaar die beleggingsmarkte kan wees en dat dit tyd in die mark  eerder as tydsberekening is wat goeie opbrengste verseker.

Beleggers het behoorlik hul bene gebreek om in die derde kwartaal uit geldmarkfondse te klim.

In die derde kwartaal het geldmarkfondse ’n netto uitvloei (beleggings minus onttrekkings) van R5,8 miljard beleef.

Dit is die grootste uitvloei in vyf jaar, volgens die vereniging vir spaar en beleggings van Suid-Afrika (Asisa).

Beleggers het die kwartaal R91 miljard in geldmarkfondse belê en R96,9 miljard onttrek.

Die bates onder bestuur in geldmarkfondse was einde September R235,9 miljard – dit is ’n derde van die totale bates onder bestuur in binnelandse fondse.

Fondsbestuurders het hul teleurstelling uitgespreek oor dié gedrag van gewone beleggers wat toon hulle reageer al weer te laat op die markte.

Die geld is verskuif na fondse met ’n blootstelling aan aandele.

Die grootste netto invloei is deur binnelandse batetoewysingfondse van R9,75 miljard verkry.

Mnr. Jeremy Gardiner, ’n direkteur van Investec Batebestuur, sê die syfers dui aan dat gewone beleggers die herstel in die aandelemarkte grootliks misgeloop het.

In die derde kwartaal is die styging in aandeelpryse voortgesit wat sewe maande gelede begin het.

Die indeks van alle aandele (Alsi) het van vroeg in Maart tot einde September met meer as 37% gestyg.

Gardiner sê dit is duidelik dat gewone beleggers in Suid-Afrika soos in ander ontwikkelende markte nie die herstel in die aandelemarkte vertrou het nie.

“Hoekom sou hulle?

“Die konsensus was per slot van sake dat dit net tydelik sou wees,” sê hy.

Volgens hom was die konsensus dat markte sowat 15% sou styg en dan weer sou val.

“Ongelukkig vir beleggers het dit nie plaasgevind nie en die meeste beleggers wag nog op die kantlyn om weer in aandele te belê.”

Hy meen die invloei wat batetoewysingsfondse getoon het, dui aan gewone beleggers beskou die huidige wisselvallige markte as te moeilike vaarwater en plaas die verantwoordelikheid in batebestuurders se hande.

Die totale bates onder bestuur in effektetrusts (ingesluit internasionale fondse) was aan die einde van die kwartaal R747 miljard.

In die afgelope jaar tot einde September is ’n netto invloei van R99 miljard in effektetrusts gesien – die tweede hoogste netto invloei oor 12 maande nóg, volgens Asisa.

Die grootste invloei nóg is in die jaar tot einde Junie vanjaar behaal, van R103 miljard.

Organisations around the world have been severely affected by the current dismal market and economic environment. As a result, many people now have to face the daunting possibility of being retrenched.

Retrenchment, whether forced or voluntary, can be one of the most unsettling experiences you’ll face in your life. Apart from the emotional issues, it raises various financial concerns you may not have had to worry about before. How to get by until you find another job, whether you should use your lump sum to pay off your debts and the best way to make your money last may be some of your main concerns. The time immediately after retrenchment demands sound financial management on your part and could be the most defining moment in determining your long-term financial well-being.

The natural response to retrenchment is generally one of shock and even anger, which will inevitably turn into feelings of uncertainty. This is normally when our ‘caveman’ instincts take over, we adopt an adapt or die attitude and our default mindset kicks into survival mode. But while in survival mode, there is little doubt that logical, sound long-term financial decisions begin to elude us.

While retrenchment is an anxious time, many people later say it was the kick-start they needed to start thinking seriously about financial independence. But where do you start?

Firstly, we need to protect ourselves from our ‘inner-caveman’. It is vital that we have a sound framework from which to make informed and logical decisions that take our future goals and immediate needs into account. You should therefore first evaluate your current position and determine what you have to work with and then plot your way forward in accordance with your needs.

Your current position is generally determined by your current liquid investments and the severance or retrenchment package paid to you. The following is basically what you can expect to receive upon retrenchment:

~         severance pay – this is usually at least one week’s remuneration for each completed and continued year of service. Note that the first  R30  000 will be tax free – a once in a lifetime SARS exemption.

~         outstanding leave – this is paid out as gross income

~         notice pay – this is usually four week’s remuneration (for more than 1 years service)

~         pro rata bonus  - this will depend on your employment contract

~         Unemployment Insurance Fund (UIF)  -  the UIF formulas are quite complex and depend on income brackets and period of service. This makes it very difficult to gauge exactly what one can expect. Needless to say, the general guideline is that you will receive around 40% of your final salary for about nine months. 

~         pension/provident fund - you can choose to transfer your retirement savings to a new employer fund at a later date or to a  preservation fund. You could also choose to withdraw the benefit and take the cash.

With the exception of your pension/provident fund, all of the above should be used to repay debt and assist you in paying your monthly expenses. When deciding on what to do with your pension/provident fund, you should be extremely mindful of the consequences of your decision. If you, like many people, are tempted to take the cash, you should remember that the amount will be severely eroded by taxation and the long-term consequences could be devastating.

For example, a 40 year old that has been contributing 10% of his/her pensionable salary for the last 10 years and is planning to retire at 60 will need to contribute at least three times more immediately after retrenchment just to recoup the loss of compounding interest. The longer you have been contributing and the closer you are to retirement, the more the factors work against you. This becomes an especially important consideration for those planning on cashing out to pay off their bonds.

Once you have a firm grasp on what your current financial situation is, you can turn your attention to how these fit your needs. Your needs should be realistic and carefully considered as you should strive to bring your monthly expenses as far down as possible. This is achieved in two key areas:

family budget

Sit down with your family (remember, you’re in this together) and draw up a comprehensive budget. This will enable all of you to negotiate around where you can cut down on expenses. There may be areas that are non-negotiable (e.g. security, medical aid, etc) and that is acceptable. The key is to get buy-in and commitment from everyone concerned.

debt

Once you have cut down as much as possible on voluntary expenses, your focus should turn to debt repayments. Interest on debt has a crippling effect on your monthly obligations and general financial well-being. The rule of thumb is that shorter-term debt generally has a higher interest rate (e.g. credit cards) and should therefore be tackled first. As far as possible, the lump sum(s) you receive should go towards paying this off.

The most appropriate approach to managing your finances depends entirely on your personal situation. Even if you are going straight into another job, the choices you make now will affect how you live in the future. This is particularly true for the way you choose to handle your retirement savings. It is therefore always a good idea to consult a Certified Financial Planner to help you devise a strategy that meets all of your requirements and future goals.

By Shaun Latter - acsis Financial Planning Coach

Deur Shaun Latter – acsis Afrigter in Finansiële Beplanning

Organisasies oor die hele wêreld is erg deur die huidige treurige marktoestand en ekonomiese omgewing geaffekteer. As gevolg daarvan staar baie mense nou moontlike afdanking in die gesig.

Afdanking, hetsy gedwonge of vrywillig, kan een van die mees ontstellende ervarings in ‘n mens se lewe wees. Afgesien van die emosionele sy daarvan, gee dit aanleiding tot verskeie finansiële bekommernisse waarmee jy nie voorheen hoef te geworstel het nie. Van die vrae wat jou kan teister kan wees hoe om die mas op te kom tot jy weer ‘n werk kry, moet jy die enkelbedrag tot jou beskikking gebruik om jou skuld af te betaal en wat is die beste manier om jou geld te laat hou. In die tydperk wat op jou afdanking volg, is dit belangrik dat jy gesonde finansiële beplanning aan die dag lê. Dít kan bepalend wees vir jou langtermyn finansiële welstand.

Die natuurlike reaksie op afdanking is gewoonlik skok en dikwels woede, wat dan noodwendig oorgaan na gevoelens van onsekerheid. Dit gebeur wanneer ons “grotman”-instink oorneem; ons neem ‘n pas-aan-of-kom-om-houding aan en ons verstek-denkpatroon word een van oorlewing. Maar terwyl ons in hierdie oorlewingsdenkpatroon vasgevang is, bestaan daar min twyfel dat logiese, gesonde, langtermyn finansiële besluite ons sal begin ontwyk.

Hoewel afdanking angstigheid meebring, sê baie mense later dat dit die skop was wat hulle aan die gang gesit het om ernstig oor finansiële onafhanklikheid te begin dink. Maar waar begin jy?

Eerstens moet ons onsself teen die “grotman” in ons binneste beskerm. Dit is belangrik om ‘n stewige raamwerk te hê waarvolgens ons ingeligte en logiese besluite kan neem wat ons doelstellings vir die toekoms en ons huidige behoeftes in ag neem. Daarom moet jy eers jou huidige situasie evalueer, en dit wat jy nou tot jou beskikking het, bepaal, en dan jou paadjie vorentoe in ooreenstemming met jou behoeftes beplan.

Jou huidige situasie word gewoonlik deur jou huidige likiede beleggings bepaal, asook deur die skeidings- of afdankingspakket wat aan jou betaal is. Die volgende is basies wat jy kan verwag om by afdanking te ontvang:

~         skeidingsbetaling – gewoonlik is dit ten minste ‘n week se betaling vir elke voltooide en onafgebroke jaar se diens. Neem kennis dat die eerste R30 000 belastingvry sal wees – ‘n eenmalige vrystelling deur SARS.

~         uitstaande verlof – dit word as bruto inkomste uitbetaal

~         kennisbetaling – dit is gewoonlik vier weke se betaling (vir meer as een jaar se diens)

~         pro rata bonus – dit sal van jou indiensnemingskontrak afhang

~         Werkloosheidversekeringsfonds – die formules is nogal ingewikkeld en hang van inkomstekategorieë en jare diens af. Dit maak dit baie moeilik om te bepaal wat presies mens kan verwag. Die algemene riglyn is dat mens ongeveer 40% van jou finale salaris vir omtrent nege maande sal ontvang. 

~         pensioen-/voorsorgfonds – jy kan kies om jou aftree-spaargeld later na jou nuwe werkgewer se fonds of na ‘n bewaringsfonds oor te plaas. Jy kan ook kies om jou voordeel te onttrek en die kontant te neem.

Met die uitsondering van jou pensioen-/voorsorgfonds moet jy al die bogenoemde gebruik om jou skuld te delg en jou te help om jou maandelikse uitgawes te betaal. Wanneer jy besluit wat om met jou pensioen-/voorsorgfonds te doen, moet jy baie versigtig die gevolge van jou besluit oorweeg. Indien jy, soos baie mense, in die versoeking kom om die kontant te neem, moet jy in gedagte hou dat die bedrag erg deur belasting geërodeer gaan word en dat die langtermyngevolge rampspoeding kan wees.

Byvoorbeeld, ‘n 40-jarige wat die afgelope 10 jaar 10% van sy of haar pensioendraende salaris bygedra het en beplan om op 60 af te tree sal ten minste drie keer meer onmiddellik na afdanking moet bydra net om vir die verlies aan saamgestelde rente te vergoed. Hoe langer jy bygedra het en hoe nader jy aan aftrede is, hoe meer is die faktore wat tot jou nadeel is. Dit is veral ‘n belangrike punt om te oorweeg indien jy daaraan dink om die kontant te neem om jou verbande af te betaal.

Sodra jy ‘n goeie idee van jou huidige finansiële situasie het, kan jy begin om aandag aan jou behoeftes te gee. Jou behoeftes moet realisties en weldeurdag wees want jou strewe moet wees om jou maandelikse uitgawes so laag moontlik te hou. Die twee gebiede waar dit bereik kan word, is die volgende:

gesinsbegroting

Hou ‘n dinkskrum met jou gesin (onthou dis ‘n gesamentlike poging) en stel ‘n omvattende begroting op. Dit sal julle in staat stel om te onderhandel oor waar julle die uitgawes kan besnoei. Daar kan ononderhandelbare uitgawes soos veiligheid en mediese dekking wees, en dit is te verstane. Die geheim is om almal wat betrokke is sover te kry om in te koop en verbind te bly.

skuld

Wanneer jy willekeurige uitgawes sover moontlik besnoei het, moet jy aandag aan skulddelging gee. Rente op skuld het ‘n verlammende effek op jou maandelikse verpligtinge en algemene finansiële welstand. Die praktiese reël is dat kortertermynskuld (bv ‘n kredietkaart) se rentekoers gewoonlik hoër is en daarom eerste afbetaal moet word. Waar moontlik moet die enkelbedrag wat jy ontvang, gebruik word om hierdie tipe skuld af te betaal.

Die mees gepaste benadering om jou finansies te bestuur hang geheel en al van jou persoonlike situasie af. Selfs al begin jy onmiddellik met ‘n nuwe werk, sal die keuses wat jy nou maak jou toekomstige lewenstyl bepaal. Dit geld veral vir die besluite wat jy oor jou aftree-spaargeld neem. Daarom is dit altyd ‘n goeie plan om ‘n Gesertifiseerde Finansiële Beplanner te raadpleeg om jou te help om ‘n strategie uit te werk wat aan al jou behoeftes en doelstellings vir die toekoms voldoen.

Given their natural talent for their respective fields, what can the likes of Ryk Neethling, Tiger Woods, Lance Armstrong and the Williams sisters learn from someone else? These internationally-renowned sportspeople are dedicated, determined and confident. So why would they require a coach?

Behind virtually every champion athlete is a champion coach providing guidance in three key areas: improving technique, setting short and long-term goals and continually reigniting the athlete’s motivation to stay on track to achieve these goals. A financial coach or what we refer to as a financial planner, plays much the same role for champion investors.

setting short- and long-term goals

Ask any successful athlete, in fact, ask anyone who is successful in any particular field and the importance of goal setting will be immediately obvious. A coach working with an athlete for the first time will not immediately consider diet, fitness or training routines. Instead, the coach and athlete will work together to set realistic goals. Only then will the coach assesses the athlete’s abilities, fitness and potential and design a plan that offers the best chance of achieving those goals.

Similarly, investors can benefit from setting clear, realistic goals, such as the level of income they wish to live on in retirement. While longer-term goals are essential, short-term goals are as just as important as most people have financial needs that will not wait until retirement. These can include buying a new car or paying off debt and can all be built into a long-term financial plan. In this way, investors can enjoy ‘little’ victories along their journey to lasting financial well-being.

providing expert technical advice

Athletes become champions by accessing the latest technical training through updated technology and information and most importantly, a trusted coach.

Investors should also obtain as much technical detail as possible when it comes to understanding their investments.  Each individual’s circumstances are different and require a customised approach to ensure that their goals are achieved. This means that everyone requires a tailor-made strategy that suits their particular needs, whether it’s planning for retirement, organising inheritance, efficient tax planning or any other needs.  Expert financial coaches will focus on those needs and use their technical expertise to develop a sensible plan and keep it updated. This includes providing guidance on sound investment principles such as diversification.

overcoming the barriers to success

Setting clear goals and developing a strategy to achieve them are essential for athletes and investors. However, the journey towards these goals holds great challenges and rewards. This is where coaches add their greatest value!

Champion coaches help athletes put setbacks, such as injuries, behind them and tackle the psychological obstacles in the way of success. Those athletes who ignore short-term pain and set backs and remain focused on their goals are the ones most likely to attain long-term success.

Investors are distracted by similar hurdles. For example, successful investors have to learn to live with the pain of occasional market declines. This is done by understanding the difference between a short-term reduction in portfolio value and a permanent capital loss. Excessive fear results in some investors selling their assets for less than they are worth in difficult market conditions. Others may be tempted to leave their money in
low-returning assets for long periods of time.  Excessive optimism can be just as damaging. For example, investors who eagerly chase ‘hot stocks’ or ‘hot funds’ often do just as poorly as they don’t rationally assess the outlook. In these instances, an expert financial coach helps investors deal with their emotions and other behavioural characteristics that get in the way of success. Investors who can overcome the temptation to self-destruct during difficult market conditions and stay focused on simple investment principles during the good times will give themselves the best possible chance of achieving their goals.

When all is said and done, champion athletes and investors enjoy greater success by working with champion coaches.

Mense soos Ryk Neethling, Tiger Woods, Lance Armstrong en die Williams-susters het ‘n aangebore talent vir hul onderskeie sportsoorte – dus, wat sal iemand anders hulle kan leer? Hierdie internasionaal bekende sportlui is toegewyd, vasberade en selfversekerd. Waarom benodig hulle dan afrigters?

Agter feitlik elke kampioensportpersoon is daar ‘n kampioenafrigter wat leiding op drie gebiede verskaf: die verbetering van tegniek, die stel van kort- en langtermyndoelwitte en die voortdurende aanvuur van die persoon om gemotiveerd en op koers te bly ten einde die gestelde doelwitte te bereik. ‘n Finansiële afrigter, oftewel ‘n finansiële beplanner, vervul ‘n soortgelyke rol vir kampioenbeleggers.

Die stel van kort- en langtermyndoelwitte

Enige suksesvolle sportpersoon, trouens enige persoon wat in ‘n besondere veld sukses behaal, sal saamstem dat dit uiters belangrik is om doelwitte te stel. ‘n Afrigter wat saam met ‘n sportpersoon begin werk, sal aanvanklik nie aan dieet, fiksheid of ‘n oefenroetine aandag gee nie. Die afrigter sal eerstens saam met die sportpersoon realistiese doelwitte stel, en daarna sy of haar vermoëns, fiksheid en potensiaal evalueer om sodoende ‘n program of plan op te stel sodat hy of sy die beste kans sal hê om hierdie doelwitte te bereik.

Op dieselfde manier sal dit beleggers baat om duidelike, realistiese doelwitte te stel, byvoorbeeld wat betref die inkomstevlak wat hulle in hul aftreejare wil hê. Hoewel langtermyndoelstellings noodsaaklik is, is korttermyndoelstelllings ook baie belangrik omdat meeste mense finansiële behoeftes het wat nie tot by aftrede uitgestel kan word nie. Sodanige behoeftes, byvoorbeeld die koop van ‘n nuwe motor of die afbetaling van skuld, kan almal in ‘n langtermyn finansiële plan ingebou word. Op dié wyse kan beleggers op hul pad na voortgesette finansiële welstand ‘klein oorwinningkies’ behaal en geniet.

Die gee van deskundige tegniese raad

Sportlui word kampioene deur toegang te hê tot die jongste tegnologie en inligting oor tegniese opleidingsmetodes, en, van die grootste belang, deur ‘n betroubare afrigter te hê.

Beleggers moet ook soveel tegniese inligting as moontlik versamel wat hulle kan help om hul beleggings te verstaan. Elke persoon se omstandighede verskil en benodig ‘n eie benadering om te verseker dat die gestelde doelwitte bereik word. Dit kom daarop neer dat elke belegger ‘n pasgemaakte strategie nodig het wat sy of haar behoeftes pas, hetsy dit aftredebeplanning, nalatenskapbeplanning, doeltreffende belastingbeplanning of enige ander behoefte behels. Kundige finansiële raadgewers sal hul aandag op hierdie behoeftes toespits en hul tegniese kundigheid aanwend om ‘n verstandige plan op te stel en by te hou. Dit sluit raadgewing oor gesonde beleggingsbeginsels soos diversifikasie in.

Hulp om hindernisse in die pad van sukses te bowe te kom

Die stel van duidelike doelwitte en die ontwikkeling van ‘n strategie om dié doelwitte te bereik, is noodsaaklik vir beleggers en sportlui. Op pad daarheen is daar groot uitdagings, maar ook belonings. Dit is hier waar afrigters hul grootste waardetoevoeging kan lewer!

Kampioenafrigters help sportlui om terugslae, soos beserings, die hoof te bied, en om psigologiese hindernisse wat in die pad van sukses staan by die horings te pak. Dié sportlui wat korttermynpyn en -terugslae ignoreer en op hul doelwitte konsentreer, sal heel waarskynlik dié wees wat langtermynsukses behaal.

Beleggers word deur soortgelyke hindernisse gekortwiek. Suksesvolle beleggers moet byvoorbeeld leer om dan en wan met die pyn van markdalings saam te leef. Hulle moet weet wat die verskil is tussen ‘n korttermynverlaging in die waarde van hul portfolio en permanente kapitaalverlies. Oordrewe vreesagtigheid veroorsaak dat sommige beleggers in moeilike markomstandighede hul bates verkoop teen ‘n laer prys as wat dit werd is. Ander beleggers kom weer in die versoeking om vir lang tye hul geld in lae-opbrengsbates te los. Oordrewe optimisme kan net so skadelik wees. Byvoorbeeld, beleggers wat gretiglik “warmaandele” of “warmfondse” najaag, vaar dikwels ewe swak omdat hul vooruitskouings nie op ‘n realistiese beoordeling gegrond is nie. In sulke gevalle help kundige finansiële afrigters die beleggers om hul emosies en ander gedragseienskappe wat in die pad van sukses staan, beter te hanteer en bestuur. Beleggers wat in moeilike markomstandighede die versoeking van selfvernietigende optrede kan weerstaan, en in goeie tye op eenvoudige beleggingsbeginsels ingestel kan bly, sal die beste moontlike kans staan om hul doelwitte te bereik.

Alles in ag genome, ervaar kampioensportlui en -beleggers die meeste sukses as hulle die pad saam met kampioenafrigters stap.

In order to provide appropriate advice in terms of the FAIS Act, we need to have all the relevant information from a client.

Mr Page approached us for advice regarding his retirement. He was 45 years old and had belonged to his company’s pension fund for the past 20 years. He was contributing 10% of his salary of R45,000 per month to his pension fund. The resignation value of his pension fund was R1,867,000. He also had a retirement annuity to which he had been contributing R367.00 per month for the past 15 years. The underlying value was R168 400.

Mr Page wanted to know if he had made adequate provision for his retirement if he planned to retire at age 65 and wanted to receive a pension of 75% of his final salary. We went back to him and requested more information. We wanted to know what the underlying asset allocation (i.e. number of shares, gilts, bonds and property) of his pension and retirement annuity was. After some searching, he came up with the following information:

Pension Fund

• 15% Shares
• 6% Property
• 22% Gilts
• 57% Money Market

Retirement Annuity

• 32% Shares
• 15% Property
• 53% Money Market

We then went to work on establishing how much capital he would require at age 65 to provide a pension of 75% of his final salary, keeping in mind that the pension would also have to increase annually in line with inflation (6%). His final salary would be R144,321 per month; 75% of that (R144,321) would be R108,240.82 or R1,298,889.87 per annum.

The total capital required at age 65 to achieve his goals would be R21,600,798, assuming inflation of 6% during retirement, 11% capital growth and satisfying the requirement that the capital would have to last until his 95th birthday. An analysis of his current position revealed that his pension fund (with current asset allocation) would yield R12,284,374. There would be a shortfall of R9,316,423. This is largely as a result of the underlying asset allocation being too conservative.

As he had more than 10 years left to retirement, he needed to have far more equities in both portfolios. The current pension fund legislation allowed the equity exposure to be as high as 75% of the total portfolio.

We suggested that he contact his pension fund administrator and request that the asset allocation be altered to the following:

• 75% Shares
• 6% Property
• 15% Money Market
• 4 % Gilts

We altered the retirement annuity asset allocation to:

• 75% Shares
• 6% Property
• 15% Money Market
• 4 % Gilts

The new structured portfolios could yield a capital value of R26,468,086.

This would be R4,867,288 more than would be required. If this could be achieved, Mr Page could end up with a pension of R1,591,567 per annum instead of the R1,298,889.87 he required. That would equate to R132,631 per month or 92% of his final salary. So without having to invest more money from his after tax income, he could more than adequately achieve his retirement goals.

Setting investment goals and structuring the total portfolio so that it is aligned with these goals are probably the most important considerations when financial planning for retirement takes place.