Goal Based Investing

How is goal-based investing different?

Historically, the investing process has worked something like this: you identify goals, then lump all your discretionary assets into a single portfolio or “bucket.” Progress is gauged by how well the strategy performs against market benchmarks over time.

Goal-based investing examines your goals and assigns each a separate investment strategy relative to the goal’s importance, time horizon and level of risk with which you are comfortable.

  • PERFORMANCE is measured as progress toward achieving each goal, rather than returns compared to an arbitrary benchmark.
  • RISK is viewed as the possibility of failure to fully achieve a specific goal. Logic dictates you can take more risk with long-term goals and less risk with short-term ones. Similarly, it makes sense to take less risk with the funds designated for needs, like day-to-day living expenses, while accepting more risk for discretionary “wishes” or “dreams” goals, like luxury vacations.
  • ASSETS include all your available resources: monetary assets, securities, real estate, employment income, social security, etc.
  • LIABILITIES are loans, mortgages, other debts, etc., in addition to the capitalized value of the needs, wants and dreams.

How do I get started?

The first step in working toward your goals is finding the right advisor to help get you there. That’s why we offer no-obligation initial consultations. These meetings provide an opportunity for you to get to know the person who will be advising you, and just as importantly, for us to get to know you.

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