Applying the “three lines of defense” in multi-asset income
Facing volatile markets and lower rates, how can investors seek yield while managing risk?
Asia has a strong savings culture but not everyone can successfully save enough to meet their retirement goals. Some may drift from year to year and pay for whatever expenses that come along without adhering to a targeted retirement plan. While others may make a conscientious move to improve their life in retirement. So as you map out your retirement goals, you may wish to pay closer attention to this viable option.
Goals-based investing is crucial to investing for retirement. As the name suggests, it is a strategy that aligns your investment strategies by goal, based on risk tolerance and investment horizons, so that you can use time to your advantage.
By segregating your money into separate accounts for different purposes, you are less likely to spend that money for “unselected” purposes. This is because dipping into those accounts for an unrelated expense would effectively violate a rule and trigger a sense of guilt, an emotion that would make you think twice before acting. This bucketing approach can also help you get a better read on where you stand relative to each goal.
Goals-based investing works. Consider this tried-and-true approach as you create a retirement plan and stay the course.
Download Retirement Insights Publication: Investing for retirement