Goal Based Planning
Why Goal Based Planning?
“The trouble with not having a goal is that you can spend your life running up and down the field and never score.” – Bill Copeland
Anything and everything what we do in life should have purpose/target/goal. This holds 100% true when it comes to investments and savings. Everyone of us dreams about something we want to achieve in future. It is Dreams / Goals which keep us motivated to work, work hard and harder. Goals are about us, our family and we try to achieve them at any cost and keep pushing ourselves for those. Hence, it is important that we give equal importance to build a plan for achieving our goals, living our dreams like what we do to work hard for it. The key benefits of Goal Based planning are –
1. Brings Objectivity to Dreams and make the target (Goal) clear to achieve it.
2. Helps in deciding the Priorities of the Goals in life
3. Reality Check to have the way forward and have peace of mind
4. One can Get the Asset Allocation Right to achieve the goal
5. Helps in Consolidating all the Assets at one place
What is Goal Based Planning?
Any goal is a clearer version of your dream. Dreams are subjective while goals are objective in nature. Goal based planning is about converting your dreams to goals and build a path to achieve those goals. It is a three step process where
Step 1 –Convert all dreams to goals by defining the priority, target figure and tenure to achieve the goal.
Step 2 –Listing of all the assets, liabilities and investment potential which is required for building the plan.
Step 3 –Connecting the assets to goals (appropriately), taking into consideration asset type, expected returns and most importantly managing the overall asset allocation as per the goal timelines and risk appetite.
Our approach
- Initial Discussion – Discuss about the Dreams one has seen for themselves and for family
- Bring Objectivity to Dreams – Articulate the dreams to convert them into goals after considering goal figure in today’s terms and applying inflation for the defined period of the goal
- Goal Prioritization – Prioritize goals considering several aspects of financial planning
- Asset Data Consolidation – Collate all the assets one has created so far
- Asset – Goal Linking – Link all the available assets to the goals based on the suitability and identify the gaps for reaching goals
- Build Plan to Fill the Gaps – Build a detailed plan which needs to be executed for meeting the goals
We have a firm belief that success of a plan lies 20% in building a good plan and 80% in execution of the plan. Hence we provide all the assistance required for execution of the plan the best possible way.