F.A.Q. #7 - What exactly is Goals-Based financial planning?

Updated: Oct 15, 2020

In an earlier blog post, I talked about "needs-based" financial planning and that it was a product of financial companies putting their own "packages" together on a low-cost, but highly profitable basis for these companies and calling it "financial planning".

Here is that blog post here:


Today, let's talk about "goals-based" financial planning. What IS "goals-based" financial planning? Simply put, it's the notion that "I have $500/month (or I have $250,000 in a lump sum) that I want to put aside every month so I can have a larger lump-sum of money to do x, y, and z with it."

What's the problem with that?

1. Where did you come up with the initial amount from your budget? What if we could double, triple, or even quadruple it… by reprioritizing and repositioning some of your assets and cash flow? Would that help you to achieve your goals faster? Many investment reps may not even bother with that as it may not be seen as a worthwhile use of time OR they may choose to charge you a fee to prepare a plan (that may run you hundreds of dollars itself).