Building Your Wealth with Goal Based Investing

Key Takeaways

• 1. Setting goals and staying committed to your goal by tracking your progress increases your likelihood of success.
• 2. A long-term strategy might help you achieve your investment goals better.

What Is Goal-Setting In Investment?

A recent study shows that setting goals can increase the likelihood of success, and this increases further when you stay committed to your goal by tracking your progress.

This can be applied to investing and is known as goal-based investing.

Why Goals Matter

When it comes to investing, setting and staying committed to your long-term wealth goals can be beneficial.

A 2016 report from Dalbar1 found that both the average equity and bond mutual fund investor stay invested for less than four years. They also achieved lesser returns than what the average equity mutual fund or bond mutual fund could deliver because of a short holding period. This indicates that a long-term strategy might help you achieve your investment goals better.

Having a goal can help you stay focused while a detailed action plan keeps you on track. With goal-based investing, you can grow your wealth more efficiently and effectively.

Track and monitor your wealth goals with Citigold Total Wealth Advisor, which can provide a comprehensive picture of your goals and analyse your current financial situation, to help you achieve your aspirations.

New to investing? Read more on our complete beginner’s guide to investing.

Sources

• 1. Quantitative Analysis of Investor Behaviours, 2016, Dalbar, Inc. www.dalbar.com

Disclaimers

This article is for general information only and is not intended to be a forecast of future events nor a guarantee of future results and should not be relied upon as financial advice. All views and opinions are as of the date hereof, and are subject to change based on market and other conditions without notice. The article has no regard to the specific objectives, financial situation and particular needs of any specific person. It is neither an offer nor a solicitation to purchase, nor endorsement or recommendation of any products or services mentioned therein, and the products or services mentioned may or may not be offered by Citibank Singapore Limited, its related entities and their respective directors, agents and employees (together "Citigroup").

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