Importance of planning
An individual earns money from employment when young and healthy; but eventually they retire or get sick- either early or after going old.
Many expenses are very predictable. Hence set up a retirement fund, children’s education fund, health/ emergency fund. Many people fail at doing this.
Goals
Investment horizon and age
One should be clear about the investment horizon: when does one intend to withdraw money from the fund, with what frequency etc..
Connection to risk
Long term investors (eg: very young people) are capable of taking greater risks than short-term investors (eg: older people, about-to-retire people); because they can afford to ride out market turmoil.
Long term investing
One should not be fooled by market jitters (or perhaps even by medium term booms and busts) in deciding on worthiness of securities; though jitters can be exploited later, while purchasing it.
Lifestyle post-retirement
Different living conditions will require different incomes. Projected cost of living should be calculated considering the cost of living, adjusted to the rate of inflation at the future abode. Living wage estimates: here.
To reduce need for money, one can lead a frugal lifestyle, live in a developing location/ country/ boat (at least part of the year) where cost of living is low and where, due to the exchange rate, savings in foreign currency can be exploited.