Financial planning is a strategic way to ensure you meet your money goals.

It is an important step to taking control of your income, expenses, and investments so that you can secure funds for the short, medium, and long term.

When it comes to finances and investments, the focus is usually on retirement or long-term goals. Planning your finances for the long term is key, however, including mid-term investments in your financial plan, can help boost your earnings and achieve targeted goals within a few years.

What is a Mid-term Goal?

For starters, a mid-term financial goal usually takes three to 10 years to accomplish. Mid-term financial goals tend to be SMART goals – Specific, Measurable, Achievable, Relevant, and Time-bound. They are targeted and used to cover specific upcoming expenses, like a down payment on a house in five years, a wedding in three years, or growing your investment portfolio over eight years.

Setting good and appropriate mid-term financial goals should include planning with an advisor, such as an investment manager at Sterling Asset Management.

Mid-Term Investment Options at Sterling Asset Management

Financial planning with your financial advisor allows you to review your goals and track your progress in achieving them.

At Sterling, there are several mid-term investments to choose from, including mutual funds and US$ bonds. 

A mutual fund pools your money with other investors to purchase assets that are managed professionally as a single portfolio. Each person owns shares of this portfolio. Sterling Global Funds’ High Yield Bond Fund is an offshore mutual fund with a moderate risk profile. The fund has generated an average annual return of over 11 per cent since 2003.

Investors benefit from the growth in the value (i.e. unit price) of their shares.

With US$ bonds, Sterling brings the global capital market directly to you, with no fees. Global US$ bonds include corporate bonds, municipal bonds, sovereign bonds and US government agency bonds. They give you access to higher returns that low risk short term investments, and provide periodic streams of income.

Your Financial Planning Checklist

If you decide to invest in the mid-term, then discussing with a financial advisor at Sterling will help you better plan your finances. Here is a checklist of things to consider: 

• Understand Your Current Financial Situation – This is the first step in financial planning. When you understand your current financial situation, you can identify opportunities and ways to improve.

• Review Savings Goals – Take a moment to decide your savings goals. What do you want to achieve over the next three to 10 years? Then determine if you’re on track or when you’d like to get started.

• What’s Your Cash Flow – Work with a Sterling advisor to understand your cash flow. Knowing how much money you earn versus how much you spend will indicate the right amount to invest.

• Choose the Right Investment Option – Knowing what mid-term investment options are available is half the battle. Mutual funds or US$ bonds are medium term options that Sterling provides. Work with one of our personal investment professionals to choose the right investment for your financial goals.

• Monitor Your Investment – Financial planning does not end once you invest your money. Monitoring and keeping track of your investment growth is crucial to better performing funds.