Goal-based investing helps navigate market volatility

Goal-based investing shifts focus from market volatility to specific life milestones like retirement or a home down payment.

The approach is built on three core components: target amount, time horizon, and risk tolerance.

A retirement goal with a 20-year horizon requires higher growth, while a 2-year goal prioritizes capital protection.

The bucket concept divides investable surplus into separate buckets for each goal, with its own timeline and risk profile.

Goal-based investing helps avoid panic selling by anchoring decisions to life goals rather than market corrections.