“Save and invest. Invest and save”. That’s been the rallying cry for the financially savvy since the rise of professional financial planning in America. 

Traditionally, savers and investors were led to focus on the highest and best returns on their money over the long term. This approach works if your only goal is to build the biggest nest egg possible, without much thought to why or what you’re saving for. 

Setting aside money for an undefined goal or uncertain deadline feels like drudgery for many, why one in five Americans cite say this is a key reason they don’t have a financial plan. However, goal-based financial planning differs in the way that success is measured. Wins aren’t measured by how well an investment performs, but instead by how investing can help reach a variety of life goals. 

Why is There a Changing Approach to Investing?

This goal-based change in financial planning stems from a response to the cultural/economic upheaval from the Covid pandemic and other global disruptions. More investors and savers are looking beyond rates of return to better align their financial and life goals. They want more realistic, satisfying short and long-term investment and savings milestones. These milestones include buying a home, buying a car, paying for college or a wedding, paying off debt, building an emergency fund or starting a business. 

This fresh approach focuses less on building as much wealth as possible, and more on setting achievable financial goals. Young savers and investors could particularly benefit later in life from dividends from goal-based investing. 

Clearer Picture of Investment: Savings Milestones

With a clearer picture of why you’re saving or investing, it becomes less of a challenge and more satisfying – perhaps even fun. Diversifying your savings and investments reduces risk, which is ideal if you need money soon, like if you’re nearing retirement or saving for a home. 

Shortening the time window for how long and how much to invest gives investors or savers more flexibility in the types of investments – stocks, bonds, mutual funds, etc. – they can take on, and as well as tolerable levels of risk. 

Why Should You Think About Goal-Based Investing?

Goal-based investing focuses savers and investors on specific reasons for devising and sticking to their short- or long-term savings plans. Being hands-on with your savings not only makes you accountable, but also makes it possible to optimize your investment risk. 

Avoid the temptation to churn investments

A goal-based savings plan guides your investments by focusing less on potentially risky assets, and more on when you’ll need your money. This can range from months, in the case of saving for a home or a car, to years, to save for your child’s college tuition, or for your retirement. 

It also allows financial planners and wealth advisors focus more on helping clients identify their financial goals and set a road map to reach them. Plus, a new goal-based investing certification trains the next generation of advisors, giving investors more confidence in goal-based financial planning. 

Starting Goal-Based Investing 

All you need to do to start is set specific, realistic financial targets for your next milestones. How else will you know when you’ve reached your investment target? Your best financial goals are achievable and rooted in reality. 

Setting these targets will allow you to see when your milestones are reached and how long you have to go to get there. When you have a clear target, you know how much you need to save to say put a down payment on a new car or home. Always remember realistic goals, are generally more achievable goals.  

You can easily manage savings goals according to your timeline. Some goals will take less time to reach than others. A short-term goal might be buying a car or home within a year. While saving for your children’s college or your retirement are long-term goals. It is important to avoid “market time’’ moving money in and out of investments based on market predictions. Use our financial calculator to get an idea of what your savings will be worth down the road.

Contact Ameris Bank today and let our team partner with you to identify your savings goals and set up a sustainable plan to achieve them. 


Reviewed April 2025

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.