What Is Goal-Based Investment Planning?
Goal-based investment planning is comparatively a new approach to wealth management that completely focuses on investing with the target of achieving specific life goals.
Goal-based investing (GBI) involves a wealth manager or financial investment advisor that helps you measure and progress towards specific life goals, like saving for children’s education or building a retirement funds, instead of emphasizing on generating the best possible portfolio return.
Understanding Goal-Based Investing:
Every individual has financial goals that he/she wants to reach within the short-term, medium-term or long-term period. Investing regularly so that to reach the respective financial goal is named goal-based investing.
For instance, if you propose to shop for a luxury car within the next 2-3 years, it’s a short-term investment goal.
Likewise, if you would like to plan for your retirement, children’s education, then these are often termed as long-term investment goals.
Goal-based investing differs from traditional investing, so, it becomes a metrics of success in co-relation to how well the investor is in a position to satisfy his or her personal life goals, instead of how well his or her investments perform against the market average, during a given period.
Goal-based investing re-defines success with to investment as it supports one’s financial needs and goals.
If a main goal is to save for upcoming imminent retirement and fund the education of young grandchildren, then the investment strategy would be more conservative for the previous goal and comparatively aggressive for the latter.
The advantages of goal-based investing include:
How Goal–Based Investment Planning Works:
Why The Gainers
We intend to provide you the best financial solutions that make us stand ahead of the league. With a team of passionate professionals who have garnered years of acumen and expertise, we are here to turn your dreams into reality. Echoing the diverse need of customers, we walk the extra mile by creating customized portfolios for every customer.