What Is Goal-Based Investment Planning?
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. 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-bas...