How Knowing Financial Goals Helps Investment Success?
When you have defined financial goals, meaning, and understand their types, selecting appropriate investment options becomes easy. The following two are instances of understanding your financial goals and how they help you invest successfully for life’s different stages:
For the Financial Goals of Child Insurance:
When you link savings to specific milestones for your child, it becomes easier to select investment tools that align with growth, security, and long-term planning. For example, child education goals can be best fulfilled with the type of child insurance plan you choose. Here are some choices that can support child-related financial goals:
A child insurance plan can help you stay focused on future education and significant milestones
A guaranteed savings plan is suitable when you prefer stable and predictable returns
A ULIP plan can be considered if you are comfortable with market movement and want long-term growth potential
For the Financial Goals in Retirement Planning:
Similarly, retirement plans will be an easy choice for a defined goal. By planning for this phase of life, it becomes clearer when you know how much income you will need to maintain your lifestyle without financial stress.
Retirement goals are often defined as a % of the income you will save. So, for example, if your annual income is ₹10 lakhs, and your retirement need is 15% of your income, you can allocate a total of ₹12,500 per month into that scheme.
National Pension Scheme or Public Provident Fund help you build a retirement corpus through long-term and consistent savings. Planning and knowing your investment goals gives you an edge with investments. Proper and disciplined investments are the path to a prosperous future.
