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3 Benefits Of Goal-Based Investment

1. Builds Financial Discipline Investing without a plan is a less disciplined approach. Many investors who do not have a specific aim in mind eventually cease investing for a variety of reasons. However, if you have precise goals in mind, you are more likely to stick with it. Because you know that if you stop investing, you will never achieve your goal.

2. GBI Balances Your Portfolio When all of your investments are tied to your financial goals, you’ll be able to examine and rebalance your portfolio at the appropriate times. It also allows you to choose the best goal-based asset allocation. This is the key to safeguarding your gains and ensuring that you will have the funds when you need them.

3. Helps You Determine Your Exact Needs When you conduct goal-based investing, you’ll make a list of the goals you want to reach, when you want to achieve them, and how much money you’ll need. And, while you do so, you’ll think about the current cost of reaching that goal and whether or not to raise the investment amount.

3 Key Takeaways 1. Goal-based investing places your financial goals at the centre of your investment plan. 2. It helps you achieve your goals through planned investing and manage your wealth. 3. You can start investing based on your risk tolerance, needs and time period of your goals. You get a clear view of your finances by mapping out all of your requirements. Goal-based financial planning can help to determine how much to invest, where to invest, and when to begin investing. Furthermore, it provides you a reason to stay invested. And it helps you in fighting your worst adversary: recklessness.

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