The Significance of Goal-Based Financial Planning
Why Goal-Based Planning is Essential to Navigate Market Fluctuations In the realm of financial planning, the importance of goal-based approach cannot be overstated. Here, we delve into why goal-based planning is essential and how it can help you navigate the unpredictable nature of market fluctuations. Understanding the Pitfalls of Improper Planning While many investors aim to maximize their earnings, they often do so without a structured plan, often keeping their investments solely in one asset class ( equity ). While this approach can yield high returns in a bullish market, it also exposes investors to substantial risks. When the market declines, these investors experience greater losses and may panic, leading to ill-timed decisions that aggravate their financial woes. As long as you are working / earning, the impact of market fluctuations may not be felt significantly. Day-to-day expenses are typically covered by your income, and any losses in your investment portfolio can b...