Walk the goals-based allocation waterfall
Apply a goals-based sequence to assign capital to essential, lifestyle, and aspirational goals.
Client meeting Sam and Iris want one risk score to answer three different funding problems. A single score hides the fact that college, retirement, and a lake house do not have the same failure cost. Goals-based sequence Secure, fund, grow, aspire Start with the goal that cannot fail, then work toward goals that can flex. Shortcut One portfolio risk score for every goal The allocation matches failure cost rather than generic risk appetite. Goals-based investing defines risk as failure to fund a goal, not just volatility. 01 Essential floor 02 Dated liabilities 03 Aspirational upside Step 1 The couple needs…
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