Personal Finance

Goal-Based Investing

Definition

What is Goal-Based Investing?

Building separate investment strategies around specific life goals.

Example in practice

School fees use short-term assets while retirement savings use more equities.

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Money set aside rather than spent, often for emergencies or future goals.

Liquid savings reserved for unexpected expenses or income disruption.

Total assets minus total liabilities.

Annual portfolio withdrawals divided by the portfolio's starting or current value.

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