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Realise Your Life Goals With A Proper Goal Based Investment Plan

11 May 2022, 10:15 PM

From the beginning till the end of any work, maintaining a well-planned schedule is considered to be one of the most dependable keys to success. When it comes to achieving new goals, the initial step is to set achievable targets. When observed on a broader spectrum, any set target requires careful financing to be achieved. Therefore, careful planning and consideration are required depending on the nature of the set goals. It can be short-term, mid-term or long-term. 

Differences between traditional approach vs. the goal-based approach

Traditional ApproachGoal-based Approach
Focuses only on the risk profile of the concerned investorA goal-centric approach, which considers the investors' needs
Ensures safe returns with secured wealth generation.Ensures to achieve the set target while enhancing the wealth
Requires only risk calculationThorough research of the financial targets of the investor, the financial capacity of the investor is needed


Advantages of goal-based investment approach

  • The investor gets positively engaged in better fund management with an organised and systematic approach
  • This practice prohibits the tendency of reckless expenditure, which can lead to financial jeopardy
  • With guided channelling, the fund value enhances with the best interest of the investor thereby ensuring to achieve set targets within a stipulated time
  • Enhances the chances of achieving the set goals
  • Depending on the requirements, investment planning can always be modified and adjusted, to suit the changing nature of the current financial needs.

Planning goal-based investment

  • Prepare a list of the desired life aims to get a coherent picture of the finer details
  • Careful analysis and expert speculation is needed to understand the approximate financial requirement
  • Divide the corpus broadly into 3 segments—short term, midterm and long term, depending on the nature of the set goals
  • Based on the knowledge of the investment options, select the investment options accordingly

From the financial perspective of the market, it can be said that the types of investment goals can be divided into three segments which depend on income, outlook and of course age. Age can further be subdivided into young age, middle age involving family-building and old age. Depending on the nature of duties for each segment, if the financial investments can be programmed, then that proves to be the ideal setting with secured backing.

Most of the young age gets wasted in trying to understand the need for investment. This happens mostly because of the lack of financial discipline. But, experts suggest that the earlier the investment is planned, the better it is in the long run. The compound factor works in favour of the investor for wealth creation.

The outlook factor focuses on the basic operations that are generally performed in a lifetime—starting a family, planning the number of kids depending on the family income, the residence, etc. These life steps require planning which when executed properly, makes the achievement of goals smooth.

There is no guarantee when life will take a sour turn in the form of any unforeseen medical emergency, an unplanned pregnancy, heavy losses due to any natural calamity or any accidents, etc. Therefore, it is best to have some resources at hand to cope in such crises. 

Goal-centric investment plans cautiously intersect with a life target by generating accountability and motivation. It requires careful planning to avoid a hand-to-mouth situation under the current circumstances while saving and setting up for the future. There is not much to sacrifice if the investor plans logically and strictly observes the set plan. Periodic reviews can provide a clearer picture of the track.

5 forms of goal-oriented investments

  • Specific: Prepare specific and to-the-point goal
  • Measurable: Set coherent goals which can be easily observed
  • Achievable: Logical and practical approach is required while planning the targets
  • Relevant: Analyse the current situation thoroughly for deciding realistic future goals
  • Time-frame: Set a stipulated time frame for better tracking of the goals achieved as well as the remaining ones that need to be achieved in future.

Investment planning about post-retirement at the beginning of the career may seem to be difficult. But careful assessment won’t keep the matter that hard. Cautious self-evaluation and foresight are necessary for the respect of finances so that the old age remains financially secure. 


The bottom line is to keep oneself well-guarded against unprecedented emergencies which can hamper the regular flow on a long-term basis. It is best to start investing as early as possible and proceed gradually by fulfilling certain fixed aims and proceeding accordingly.