Goal-Based Investing

Before you start investing money into the market, ask yourself one question: What exactly are you saving and investing for? Don’t invest in a portfolio, invest in reaching each individual financial goal that you have. The portfolio is just the vehicle you need to achieve each goal, so each portfolio should represent its own goal. This is the basic principle of goal-based investing.

List of investment goals.Most of us view our retirement portfolios (IRA’s, Roth IRA’s, 401K’s), brokerage accounts, CD’s, savings accounts, etc., as numbers on a screen with no individual goal or objective attached to them. Instead of viewing our savings and investments as one big “save as much as you can” account which you are just trying to grow and preserve, think of your investment accounts as each having its own purpose.

For instance:

Money saved in one account is saved for retirement income starting at 65, while another account is meant to be used as a nest egg in 5 years.  Money saved in another account will be used to pay for a car in 3 years, another for a boat, an engagement ring, or a vacation, etc.

Investment term considerations.With today’s investing technology, where transaction costs, trade costs, account opening/transfer costs, rebalancing costs and transfer costs are much cheaper (in fact free at iInvest®), setting up multiple accounts for each goal has never been easier, and is highly recommended by the iInvest™ Team for many reasons.

Goal-based investing is an investment strategy that is more precise, greater detailed, and attaches something personal and important to you. It simply forces us to think about what matters most in our lives. Each account has its own unique plan to accomplish a particular goal by a certain date, with its own unique portfolio allocation and investment risk level.

This method compared to a more traditional save as much as you canapproach will help in developing a true understanding of what you hope to achieve at different stages of your life and will allow you to make the necessary adjustments to reach your goal as you move forward.

Investments for life goals.Strong, goal-based investing, just like setting our own personal goals in life does the following:

  • Provides direction
  • Clearer focus on what is important
  • Clarity in decision making
  • Gives you control of your future
  • Provides motivation
  • Gives you a sense of personal satisfaction
  • Gives you a sense of purpose in life

Learn more about how iInvest® can help you not only with goal-based investing, but you can link all your accounts, including external accounts to see your entire financial picture and make the necessary adjustments as your move forward to reach all of your goals, no transaction fees, transfer fees, trade fee’s, no hidden fees.

Contact a registered investment advisor today if you have any questions about goal-based investing.

Investing for retirement.

iINVEST SOLUTIONS IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. THE TACTICALSHIFT™ STRATEGY MAY GENERATE A TAXABLE EVENT IN NON-QUALIFIED (TAXABLE) INVESTMENT ACCOUNTS. PLEASE CONSULT YOUR TAX ADVISER. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE PERFORMANCE.  MoneyGuidePro® is a registered trademark of PIEtech, Inc. All rights reserved.


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