Optimizing Savings with a Goals-Based Approach

Optimizing Savings with a Goals-Based Approach

Financial planning, by definition, is a goals–based profession. And yet, to date, many financial planners have focused on just one goal—retirement—at the expense of others.

Most individuals have important financial goals on their way to retirement, with no real plan to achieve them.

35

Years to Retirement

$120K

Salary

$50K

401(k)

$20K

Debt

Retirement

College

Weddings

Travel

A simple approach can work well when an individual’s only priority is retirement, but rarely is the financial picture so black and white.

The true secret to successful planning goes beyond building portfolios, and begins with goal prioritization.

Financial Goals
  • Retirement

  • College

  • Weddings

  • Travel

Goal Prioritization
  • Very High

  • High

  • Medium

  • Low

Once we know which goals to focus on, we can start to fund them from a savings perspective over time.

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This goals-based framework better serves an individual’s needs and can lead to 15% more wealth.*

A holistic approach gives investors more choices and more freedom to prioritize and plan their lives.

Read David Blanchett’s latest research for insights into how a goals-based planning approach can help increase a household's wealth by more than 15%.*