Thinking ahead about how investing can support financial goals is the purpose of planning. Naturally, there’s lots of talk about common planning targets: retirement and college. But there’s also consideration of how to achieve multiple goals at various stages of life — whether covering basic needs or leaving a legacy — and how taxes and tax planning could impact results. Articles in the planning category allow you to clarify how today’s decisions can impact efforts to grow, manage, and maintain wealth.

How to Set and Reach Financial Goals with Betterment

For many years, I have been resistant to the idea of setting financial goals; instead, I have opted to accumulate wealth so that I have the means to make purchases when needed. This wealth-building approach can be effective, and is certainly better than not saving, investing, and growing assets.

Still, there are at least a couple of shortcomings to general wealth building: 1) I’m not sure when my goal has been achieved; and 2) I’m reluctant to spend down the assets that I’ve worked so hard to accumulate, largely because I’m not clear about the purpose of my investments and the timing of withdrawals.

Goal setting can inspire me to save and invest, and make me feel happier and more secure about spending.

Donor-Advised Fund for Charitable Giving

Last year, I set up a donor-advised fund through Schwab Charitable. I established this fund to streamline the process of donating to a charity using appreciated stock. After opening this account, I’ve discovered unanticipated benefits as well as a few drawbacks.
Here are some things to know about a donor-advised fund:

Compound Interest, How It Works

You may have heard that you should invest as early as possible in order to take advantage of compound interest. The younger you are when you begin investing, the sooner compounding can (possibly) start and the sooner exponential growth can (potentially) happen.

The concept of compounding is well worth knowing and relevant to investing.

What to Do with Company Stock

Accumulating company stock has been a good way for my family to build wealth. I’ve heard others say they’ve been able to generate income by buying shares at a discounted price and then selling shares at a higher price. In this way, they may have more money available to pay off debt or invest, increasing their net worth.

I won’t argue in favor of or against the inclusion of company stock in an investment portfolio. But we’ve decided not to hold company stock forever. Here are a few things we’ve done with the shares: