Goals based investing is a great way to make wise financial decisions when you are overwhelmed by the choice of investment options.

In this podcast episode, I talk about how to navigate the myriad of investment products available today by clarifying what you are really aiming for in the future.

If you would prefer to read about it, there’s also a transcript below.


Goals-based investing is this week’s topic and a great way to help you make wise financial decisions.

Investors today are bombarded with an overwhelming number of choices and investment options. With so many options available, it can be very difficult to determine which one is the best fit for your individual needs.

This is where goal-based investing comes into its own.

Goals-based investing is an investment strategy that focuses on achieving specific financial goals.

This type of investing can be used to reach a variety of financial goals such as retirement, buying a home, or saving for child’s education.

You need to set financial goals to help you make wise financial decisions and also as reward for your own efforts.

Goals should be clear, concise, detailed and written down. Because remember. Unwritten goals are just wishes.

There are many benefits of goal-based investing including:

1. Improved clarity on what you’re trying to achieve

When you invest with a specific goal in mind, you will have a clearer understanding of what you need to do in order to reach your goal.

This can help you stay on track and make better investment decisions over time.

2. Greater focus on the long term

With goals based investing, you are less likely to be swayed by short-term market fluctuations. This can help you stay invested for the long haul and avoid making impulsive decisions that may not be in your best interests.

3. Enhanced discipline

Having a specific goal can help you maintain a disciplined approach to investing, which is essential for success over the long term.

4. Increased motivation

When you have a concrete goal that you’re working towards it can be motivated and encourage you to stay the course, even when times are tough. But in order to achieve all of your goals, you will need a plan.

Starting from assets you already have available, you will need to determine how much more you will need to accumulate and when you will require it.

Goals-based investing also helps you to increase your chances of financial success. There’s no one size fits all answer to the question of how to set goals.

However, there are some basic principles that can help you get started, and the first step is to decide what you want to achieve. This may seem obvious, but it’s important to take the time to really think about your goals.

  • What you want to accomplish in the short term?
  • What are your long term goals? etc

Once you’ve decided what you want to achieve, you need to set realistic and achievable goals.

That means setting goals that are:





Time bound

In other words, being SMART.

So let’s look at the first one being specific.

Your financial and personal goals need to be as specific as possible, because otherwise they wouldn’t give you enough direction to follow through.

smart investment goals

Look at your goals, like a lamp lighting the way. The brighter the light, the clear the road is ahead.

If you don’t have clearly defined goals you will procrastinate. Think about your life and what you want to achieve, and what action you need to take to achieve the outcomes that you want.

Next is measurable.

Give yourself realistic deadlines, adding specific dates, amounts, etc makes your progress quantifiable to complete your goals and visualize a finish line.

Next is attainable.

Be honest with yourself and set realistic goals. Decide what you want to accomplish. So start with the goals that are highest on your priority list. It’s easy to be overwhelmed by everything that needs to be done, so start simple.

Next is relevant.

Align your goals with the direction you want, you like to take. Balancing the alignment between long-term and short-term, will give you the focus that you will need.

And lastly is time-bound.

Having a finishing line will mean you get to celebrate when you accomplish your goal. Having set deadlines gives you a sense of urgency. That is lacking when goals are open-ended.

So in reality, it’s about setting realistic goals.

Each goal will be assigned an amount, an investment period, a level of risk and an order of priority.

Do you have the means to make additional investments necessary to accumulate the required assets to achieve your goals? Don’t neglect to consider the effect of taxes on your savings and investments, it is a big factor and always needs to be taken into account.

So after considering all of this, you might determine that you can achieve some goals in less time. And that’s often the case. Or you might find that it could take longer.  However, the time horizon is important to setting realistic goals.

Get In Touch

If you would like to help with Goal Based Investing, get started with a free 30 minute call:

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