what is goals-based investing?
At its core, goals-based investing separates itself from traditional investing because it focuses on the individual's real-life goals rather than a market benchmark. Simply put, traditional investing asks "where do you want to go?" while goals-based investing asks "how will you get there?"
Horizon has developed a goals-based approach to investing and provides investment strategies customized to meet the individual's goals. On the journey to funding a goal, Horizon has identified three major stages and has designed strategies to achieve the outcomes that each stage demands.
Accumulation of wealth
The period of time when the client is actively investing with the objective of growing assets to fund the goal. At Horizon, we call this the GAIN stage.
Preservation of wealth
The period of time shortly before the actual funding of the goal, when the client’s objective is to ensure that potential investment losses don’t jeopardize the goal. We call this the PROTECT stage.
Distribution of wealth
The period of time when the client’s objective is to actively use their accumulated assets to fund the goal. This is what we call the SPEND stage.
WHY GOALS-BASED INVESTING ?
"Goals-based investing enables advisors to help clients identify their most important and meaningful financial goals in life, so they can position their investment capital to aim for those specific key objectives—on time and in-line with their risk tolerance."
