I wish to emphasis on getting your long term financial plan right first and the short and medium would be right.
As the word long term, mean long term, which really mean you need some long years eg 20 to 40 years. On the long term basis, stock market always move up. See the historical chart of Dow, STI etc, it move higher n higher. In other words to say, if you start you long term financial plan early ( mean you have many years to play with) your return will be higher even if you manage it passively. It is a little effort with good long term result benefit.
Assuming the market condition goes through the same cycle in the next 40 years, I do a long term financial plan earlier than person A. Assuming we have equal money and equal capability, I invested lesser and get more. Person A would need to invest much more to get what i got. This is the power of compounding.
Many rich have seen that, they have started this for their children and for themselves since young.
Most people want to retire early and live a good life after that. They want to have options and the choice to work or not. The only way to that is to have no worry for their finances. So by getting you long term financial plan right first, help you to eliminate these worry and whatever short of medium plan you do, will help you achieve all these faster with confident.
