“If you don't set goals, you can't regret not

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					    “If you don’t set goals, you can’t regret not
                  reaching them”
                                ~Yogi Berra

Did you know that four of the top ten New Year’s Resolutions are related to money and finance? What wasn’t
accomplished last year—or even the year before that—we optimistically and firmly resolve to do in the new one.
That resolve will not fade if you take the important next steps: setting your goals —life goals — and developing
specific strategies for achieving them.
Some benefits of setting goals are:
•     Goals give you a target to shoot for. Even if you don’t quite reach your goal, chances are you will do much better
      than if you had no goal at all.
•     Having a clear vision and knowing the direction you want to go will also help you stay on track toward your goals
      when the inevitable setbacks occur.
•     Another benefit of setting goals is that the process can bring families together as they work toward a common
Establish your “life” goals first. If you are not sure of what your life goals are, try answering the following questions:
•     If you had all the money in the world, what would you do?
•     If you were going to be healthy and live for only 10 more years, what would you do?
•     If you were going to die in 24 hours, what would you regret not doing with your life?
Once you’ve determined your life goals, you can then determine your financial goals to support your vision.
Knowing and keeping your life goals clear will enable you to organize and prioritize your financial objectives.
Examples of goals with different priorities and time frames are shown in the following grid. By placing your financial
goals in the appropriate quadrants,
financial strategies can then be              Goals Have Different Timeframes and Priorities
developed that support your long
and short-term goals. For example,
                                             WANT TO

a strategy for a financial goal that has        WANT TO NOW                    WANT TO LATER

a high priority and a short time frame          Goal: Second Home              Goal: Meaningful Legacy

is to invest in low risk investments.           Objective: Grow Assets         Objective: Aggressive Growth for Assets

You can afford to take bigger
investment risks when the goal has a
longer time frame. With your goals              HAVE TO NOW                    HAVE TO LATER

                                               Goal: Cash Flow for Lifestyle   Goal: Retire/Slow Down Career
prioritized, you will then know how
to allocate your cash flow between             Objective: Protect Against Loss Objective: Grow Assets & Protect
                                             HAVE TO

investment and spending.                                                       Against Losses

If we can provide guidance or                          NOW                                                   LATER

assistance to help you through this
process, please contact us.                                    For Each Goal, a Portfolio is Targeted to
                                                               Address Specific Growth and Risk Needs

                                          SEI NETWORK                                                                13

    By : Tonya Mathison                                                                                       January, 2008
                           Cash Flow Management Goals
 The beginning of the year is a great time to set up systems for cash flow management, in other words— the
 budget. Like the word “diet”, the term “budget” has developed a negative connotation, in that it keeps you
 from doing what you really like to do. However, a budget or cash flow management system simply means
 allocating specific amounts of money for a particular purpose.

 Once set up, when you use and monitor such a system, you will know that you are taking the necessary steps
 to accomplish your long-term financial goals which directly correlate with your life goals. It will give you the
 knowledge you will need when its time to make important life decisions. What if life throws you a curve
 ball? What if you lose your job, or would like to retire early? Using a spending system facilitates important
 communication within families. Communicating with your family about money is one of the most important
 lessons you can teach your children.

 Right now is a great time to review what was spent last year in various categories. This will be a helpful ref-
 erence for setting up your spending targets for 2008. The next step is to keep track of your spending for one
 month. Our suggestion is to chose a method that works best for you. Use a system that you will enjoy using.
 If you are a paper and pencil person, use a note book. If you like spreadsheets, use Excel or if you like to use
 customized software, we recommend Quicken. If you’d like help with a recommendation that is right for
 you, we are happy to assist.

 A major factor in any system you choose is the categories for spending. You can name them what you want,
 but stay consistent with the names. Use the same categories each month. For your reference, enclosed is a
 cash flow category listing. If you prefer to have an electronic copy of this, send an email to the address be-
 low, and we can email it to you.

 After the first month of tracking, total each category and continue to record your spending for another month
 so that you can compare monthly totals. Usually after three to four months, you can annualize the amounts
 to set realistic spending targets for 2008. You will then be able to make easier and better decisions about
 spending because you know you have the money earmarked or set aside.

 Next month, we will focus on financial record-keeping requirements and organization. Do you know how
 long you should keep tax records? Find out in next month’s letter.

Questions or comments? We welcome your feedback. If you prefer to re-
ceive this electronically, please forward your e-mail address to:

                         Tonya Mathison
                 Goldstein Munger + Associates
                   18 Crow Canyon Ct, Suite 250
                       San Ramon, CA 94583
                          (925) 552-1400
                                                                                                        January, 2008