Video Tutorial for Goal-Based Investment Strategies
Some plans offer a Goal-Based Investing strategy to savers if it has been selected by the plan’s investment fiduciary. Vestwell’s Goal-Based Investing option gives savers a personalized, outcomes-oriented way to save for retirement. Instead of choosing funds on their own, employees are guided toward investment choices based on their retirement goals, such as a target retirement date and risk preferences, and the algorithm helps recommend an appropriate portfolio.
The account aggregation feature allows savers to aggregate outside accounts, other than their employer’s retirement plan, that they have earmarked for retirement. You can link up to five outside accounts through our integration with Plaid and may add five other account balances manually. Adding outside accounts to the feature will allow the tool to provide a more comprehensive view of your retirement assets.
What is Goal-Based Investing?
Goal-Based Investing is an investment experience that:
- Uses your personal retirement goals as the foundation for investment recommendations
- Suggests asset allocations designed to help you reach your retirement income targets
- Continues to monitor and adjust investments over time
The strategy remains diversified and risk-aware, aligning an individual’s investment mix with their time horizon and comfort with market fluctuations.
How It Works
When you enroll in Goal-Based Investing:
- You provide basic information, such as age and expected retirement year.
- Vestwell evaluates the your risk profile and retirement target.
- You receive a recommended investment strategy tailored to your goal.
- The portfolio automatically adjusts over time as you near retirement.