What is goal-based investing?

Goal-based investing means investing towards a concrete amount within a set period, rather than simply aiming for maximum return.

Your goal and horizon determine the strategy: the shorter the period, the more cautious the mix. As your end date approaches, risk is reduced automatically, so a market drop just before the finish doesn't derail your whole plan. Unlike a pension, you can access it in the meantime. More on goal-based investing.