Goal-based Investing for Long-Term Financial Gains

The concept of goal-based investing helps many entrepreneurs answer important questions such as how much to invest, where to invest, and when to start investing. This is the one goal that helps investors meet their financial goals.

There are a plethora of benefits to having a goal-based investment plan. The strategies to attain them may be a little different, but having a goal in mind goes a long way in helping you get there.

So, why explore goal-based investing?

Here are a few ways in which goal-based investing helps you reach your objectives faster:

1. Maintaining Discipline

Without a goal in mind, it is easy to get distracted and lose hope along the journey. Having a goal, on the other hand, helps you stay the course while keeping you disciplined since you can measure and track your progress regularly.

A set of goals are ideal to help us strategize and improve our budgets. As a result, we enjoy a pivotal advantage that helps us deal with adverse market fluctuations.

This advantage negates the incessant desire to approach investing from an emotional point of view. With a clear financial goal, investors can remove greed and fear and be disciplined in the long term.

2. Starting Early

Often, the success of an investment is determined by how early you begin. Warren Buffet, for instance, is a good example. He started investing at the age of 11, and he says his biggest regret is not starting earlier.

Take, for example, two people who started investing at different ages, say, at 20 and 30 years of age. The one who started early will have a significantly higher portfolio value as compared to someone who started a decade later.

3. Identifying Risk Profile

Investors mostly gravitate toward rising markets and remain fearful in down markets. As a result, they end up investors buying risky securities at inflated prices and selling them when markets perform poorly. This leads to losses.

When you are a disciplined investor, you make decisions with a long-term financial gains perspective instead of responding to markets by panicking. In the long run, markets have usually gone up, nonetheless.

A sure way to do this is to have a risk profile and follow it for long. Switching risk profiles by being conservative during weak markets and becoming aggressive during bull markets will only destroy your wealth eventually.

If you choose to have 60 percent of your investments in equity and the balance in Bonds, Gold, and other asset classes, it’s important to stick to the 60 percent equity at all points in time.

4. Tracking Progress

Amidst all, track your progress, because, if you don’t know where you are going, you are probably going wrong.

Through planning, you can ascertain how far you’ve come, and this helps you analyze and iterate your strategy for future outcomes.

Unsurprisingly, many investors may not recognize the power of compounding unless they witness it in action on their portfolios in the long term.

5. Diversifying Portfolios

Through goal-based investing, one can easily have a diversified portfolio, which helps in mitigating the risks of investing in a single asset class.

Diversification allows you to achieve goals without too much volatility.

6. Goal-Based Investing Is Key To Financial Success

In conclusion, goal-based investing is the best way to maintain discipline, keep emotions in check, and solve the problem of how much and where to inject your funds.

While the idea is to have all your goals mapped out and ready, as well as their timelines (that is, how long it will take to achieve them), it is also important to have a planner help you make the most out of your portfolio.

This is why Ndovu is here for you. Ndovu puts your money on autopilot and ensures that you reach your goals faster.

Diversifying your investments means you can reduce risk while maximizing rewards. Ndovu invests your money across the entire stock market using funds.

Investing with Ndovu will help you choose a risk level you’re comfortable with, then build a custom portfolio based on your financial goals. Better yet, your money grows passively.

Auto-investing with Ndovu helps you with:

• Investing for the long term – Ndovu’s portfolios are designed to invest in low-cost funds that track the market, outperforming stock picking over the long term.

• Easy access – Manage your account from anywhere in the world with your devices.

• Dividend reinvestment – Put your stock dividends back to work, earning you more. Compound growth!

If you are ready to venture into goal-based investing, Ndovu is the place to get started.

Take advantage of this chance to diversify your portfolio and have your money work for you without breaking a sweat.

Disclosure:

Ndovu is a regulated Robo-advisory platform operated by Ndovu Wealth Limited (‘NWL’). NWL is a Fund Manager licensed by the Capital Markets Authority (Kenya). The information provided on this platform and the products and services offered are intended solely for persons in regions and jurisdictions where such distribution and utilization are in accordance with local laws and regulations. Ndovu does not promote its services in regions where it lacks the necessary licenses; It is exclusively available to persons residing in countries where it holds a valid license or has regulated partners. Ndovu does not extend its services to citizens of the United States, Canada, Japan, and other restricted territories.

Disclaimer:

All ETF products are subject to risk, including country/regional, liquidity, and currency risks. Market prices of securities within the ETF may rise and fall, sometimes rapidly and unpredictably. While ETFs provide diversification through exposure to a basket of securities, they do not eliminate the risk of loss. Diversification does not ensure a profit or protect against a loss. These are non-cis products and are registered by the SEC.

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