Goal Based Planning
Goal-based planning means identifying specific financial goals and building a plan to reach each one. It focuses on a clear roadmap to the outcomes you want, rather than simply accumulating wealth.
What is goal planning?
A goal without a plan remains just a wish. Many people have visions, intentions and dreams that never happen because they were never planned.
Goals give you a clear idea of what you want to achieve. They can range from plain savings to retirement, your child's education, buying a house or a car, or your son's or daughter's wedding. Listing them isn't the end of the job, though. You also need a clear view of their priorities.
Save more, on a clear timeline
Save more
With well-defined goals, you can plan your income and expenses around them. A popular rule is 50-30-20: spend 50% of your income on needs, 30% on wants, and save the remaining 20%.
Set a time frame
Once your goals are set, decide when you want to achieve each one. This matters when investing: how long you invest depends on when you need the money.
Divide your goals into three categories
The best way to make this daunting task simple:
Responsibilities
Providing for your parents, your children's education and wedding, and unforeseen events. A financial planner can help you plan for each of these.
Needs
Retirement, buying a house, day-to-day living and saving for the near future.
Dreams & aspirations
A luxury car, a solitaire for your spouse or a world tour. Even if they feel out of reach, list them: they are a constant reminder to keep working towards them.
Every life goal, planned
Child's education
You want to give your child the best of everything, and the best usually comes with the biggest price tag. With rising costs and tough competition, education is one of the biggest goals for any parent, so it is important to start saving early.
How we can help
- Decide whether your child may study abroad
- Decide whether to save for graduation, post-graduation or both
- Estimate the future cost of education, considering inflation
- Insure yourself adequately, so the goal is met even if the earning member is no longer there
- Estimate how much to save each year for this goal
- Choose investments that suit the time left for this goal
- Last but not least, start investing today
Child's wedding
A child's wedding is one of the most important events in a parent's life. Time flies faster than you think, so it's wise to start planning for a grand celebration while your child is still young.
How we can help
- Estimate the future cost of the wedding, considering inflation
- Work out how much you need to save each year
- Decide for how many years you need to save
- Choose the best products to invest in for this goal
- Review your investments periodically and recommend changes
Dream house
Buying a home is a big event that needs proper research and planning. Such an important decision should be backed by a sound financial plan, and we have plans for every style and budget.
How we can help
- Estimate the future cost of the house, considering inflation
- Work out how much you need to save each year, including the down payment
- Decide for how many years you need to save
- Choose the best products to invest in for this goal
- Review your investments periodically and recommend changes
Dream car
For many of us, driving a cherished car is a childhood dream and a well-earned reward for years of hard work. Proper financial planning can bring that day closer.
How we can help
- Work out the total cost of your dream car and whether you can afford it now
- Help you choose a suitable car loan
- Check whether your savings can comfortably cover the EMIs
- Make sure your other goals are not affected
Family protection
Whether you've just had your first child or already have a young family, parenthood changes your life. Your days are busier, your income has to stretch further, and you need to be prepared for the unexpected.
How we can help
- Help you choose suitable health insurance, accident cover, term insurance and life insurance
- Plan for uncertain events, so your family stays protected
Dream vacation
Everyone dreams of a grand vacation. Planning one involves timing, weather, activities, budget and travel, and getting the finances right sets your mind at ease.
How we can help
- Work out the total cost of your vacation and whether you can afford it now
- Check whether your savings can cover any loan EMIs
- Make sure your other goals are not affected
Retirement
Saving for retirement is a real and urgent need, and the earlier you start, the easier it is. At EquityEdge Investments, we recommend starting at an early stage of life.
How we can help
- Decide in how many years you expect to retire
- Identify your sources of income and expenses during retirement
- Estimate how much to save each year for this goal
- Review and compare the retirement income options available
- Review your investments periodically and recommend changes
Custom goal
Have a goal that isn't listed here? Today is a great day to plan for it. Using the goal's current cost and its inflated value at maturity, we can plan well in advance to reach it.
How we can help
- Analyse your custom goal
- Estimate how much you need to save for it
- Work out for how many years you need to save
- Review and recommend changes periodically
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