Skip to main content
lifestyle goals

Goals-based wealth management helps you invest for your lifestyle

Investment portfolios are as unique as people. No two are the same. Since investments and wealth-planning strategies come in all shapes and sizes, reviewing your personal goals should be a priority in wealth management. With traditional wealth planning, your assets are usually evaluated before goals are discussed. However, if you and your family have financial dreams outside of retirement, such as a new home or saving for college, a goals-based wealth management system is a stronger option for planning for your future.

What is goal-based financial planning?

While traditional financial planning first evaluates your current finances and then considers personal goals, goals-based wealth management flips the process. Your wealth manager begins by looking at your goals, and then develops a customized portfolio for making them a reality. This approach is a more personalized method for meeting your financial needs than a traditional strategy. In addition, it helps you prioritize which goals are most important to you. After all, a college fund may be more important than a fun vacation. Outcome-based investing is better at weighing these priorities than traditional financial planning.

In addition, there are a number of other benefits to closely examining your goals while looking at wealth management.

  • First, this approach can lead to 15% more wealth versus a retirement-only outlook thanks to a sharper, more focused path to financial goals.
  • This planning method also creates a stronger relationship between the wealth manager and their client. A stronger relationship means greater trust and open communication while working together.
  • Finally, goal-based financial planning is a better strategy for hitting short-term goals, such as savings for a trip or new car.

What questions should I ask my advisor?

When meeting with a wealth manager to discuss outcome-based investing, it is important to ask the right questions to ensure your financial needs are prioritized. There are a variety of unique investment ideas out there, and your wealth manager will better know which ones fit your needs when you ask the right questions.

Here are some questions to ask your wealth manager:

  • How can you help me meet my unique investment needs?
  • Are my financial goals prioritized to fit my outcomes?
  • What are the risks of these investments?
  • Do the expected returns match how I want to live or what I want to do?
  • Does my goals-based portfolio reflect my needs versus my wants?
  • How often will I see performance reports or updates for my portfolio?

A unique financial strategy for your unique life

In summary, your vision should be reflected in your financial portfolio. A goals-based wealth management plan is the strongest approach for meeting your personalized short- and long-term goals. After all, when your wealth manager knows where you’d like to end up, they can better help you get there.