Goals-based financial planning is a method that allows clients to save for multiple financial objectives across various time horizons. The planning process helps define an individual’s or family’s goals, prioritize them and determine the optimal strategies for funding them It also provides the advisor and client with greater flexibility to adjustfor fluctuations in life and the markets.
Though money in the portfolio remains and changes with market conditions, clients are encouraged to save when they can see the progress they are making toward individual goals.
It has been proven that people who are saving for specific things do better overall. Completing individual objectives, is greater than just saving for retirement as a concept.
A closer relationship between the client and their advisor achieves better results.
The nature of the process provides both the client and advisor with a better understanding of the client’s goals which acts like a supercar saving time.
The prioritization of goals allow the advisor to split them up into separate buckets and take advantage of varying risk profiles.
A better understanding of the client’s needs provides the advisor and client with a concrete goal.
This process gives the client an opportunity to think deeply about what they want from life, when they want it and what they need to do to get there — it provides them with a greater clarity of purpose.
The advisor and client work together to begin developing the financial plan. Each goal becomes a “bucket” into which is placed the optimal assets to achieve that goal.
There are two key parts to executing a goal based financial plan and both keep the client at the center — the initial discovery, definition and implementation, and the maintenance of the plan over time.
Goal based planning seeks to fund individual goals with optimal asset allocation, removing the impetus to chase returns or feel competitive — goals are not comparable.
We believe the nature of the goals-based process facilitates a closer relationship between clients and their advisors, keeping the advisor informed about changes in the client’s life that might require adjustments to the portfolio. Assam Stock Market believes in goals-based planning and has implemented the philosophy across our firm and in our technology.
