Accumulation basics

Personal Finance | Time is on the side of those who begin building wealth when they are young | David Bahnsen

A comprehensive financial plan addresses the accumulation, preservation, and transfer of money. A godly person gives money wisely and faithfully leaves an inheritance—but both transfer and preservation first require accumulation. Let's look at three guiding principles concerning accumulation: defining goals, using time wisely, and finding the right blend of risk and reward.

Delineating goals and objectives begins the process of seeking a specific path to each goal. "Retirement" savings (defined as having sufficient funds to meet needs once earnings decline) is perhaps the most common financial goal Americans face today. Given the rapidly escalating prices of college tuition, educational savings for kids (or grandkids) is another common goal.