Optimize Your Goal Investment Amount

Goal-based Investing

All of us have dreams and goals. Unfortunately for most of us the total monthly investment required to achieve these goals is a little too much. The reasons for there are many: we don’t earn enough, we spend a lot, we have a lot of outstanding debt etc. etc.

Read this article by Sanjay Dixit who works is a financial planner at Horus Financials

How a Financial Planner can add value through savings optimization?

This talks about how one can reduce the monthly investment by 20-40% and still achieve all goals. Thanks to Mr. Centhil R. Iyer, Horus Financials for pointing me to this article.

So I made an excel calculator to automate this process for 5 goals in addition to retirement. It also has the Retirement planner Lite and general goal planner built into it.

Go ahead give it a try and let me know what you think.

Download the Goal-investment-Optimizer

Want to conduct a sales-free "basics of money management" session in your office?
I conduct free seminars to employees or societies. Only the very basics and getting-started steps are discussed (no scary math):For example: How to define financial goals, how to save tax with a clear goal in mind; How to use a credit card for maximum benefit; When to buy a house; How to start investing; where to invest; how to invest for and after retirement etc. depending on the audience. If you are interested, you can contact me: freefincal [at] Gmail [dot] com. I can do the talk via conferencing software, so there is no cost for your company. If you want me to travel, you need to cover my airfare (I live in Chennai)

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Do check out my books

You Can Be Rich Too with Goal-Based InvestingYou can be rich too with goal based investing

My first book is meant to help you ask the right questions, seek the right answers and since it comes with nine online calculators, you can also create customg solutions for your lifestye!Get it now.  It is also available in Kindle format.

Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want

Gamechanger: Forget Start-ups, Join Corporate and Still Live the Rich Life you want My second book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at low cost! Get it or gift it to a youngearner

The ultimate guide to travel by Pranav Surya

Travel-Training-Kit-Cover This is a deep dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, how travelling slowly is better financially and psychologically with links to the web pages and hand-holding at every step.  Get the pdf for ₹199 (instant download)

Create a "from start to finish" financial plan with this free robo advisory software template

Free Apps for your Android Phone

All calculators from our book, “You can be Rich Too” are now available on Google Play!
Install Financial Freedom App! (Google Play Store)
Install Freefincal Retirement Planner App! (Google Play Store)
Find out if you have enough to say "FU" to your employer (Google Play Store)

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12 thoughts on “Optimize Your Goal Investment Amount”

  1. Great tool. Can we have an enhancement to include both spuses salaries with different growth rates, different years to retirment etc and common set of goals? Because the wife may retire earlier when there is a family to take care of !

    1. Thanks. Yes this is a good idea. I was suggested this earlier. Was just too lazy to incorporate. Also I was worried if it will make it too complex.
      Easy enough to put this together. Just got to fight my inertia.

  2. Hi Pattu,

    I used your goal optimizer.. but retirement part shows huge figure I need o invest 90% of my money towards it.. which I cannot .. it rather scares me..

    Regards,
    Krishn

  3. Hi ,

    I used the same template… it gives a whopping figure of 38k to be invested per month to achieve the required retirement corpus .. if i take the net rate of interest pre-retirement (post tax) as 12%

    Dont know whether I am right or wrong

    1. I am not surprised. Typically you will need to invest each month 80-100% of your monthly expenses.

  5. I have just read the TIP investment plan on ICICI Direct. Where they claim to higher possibility to achieve the target amount.
    Sir Please can you make a calculator based to TIP strategy , and please also upload the Back testing report of TIP investment based on the Index fund NAV or NIFTY.

      1. I think after reading all above given links, this is true that SIP works best.
        According to me VIP model works best of we start it when market is at its median PE , (Say around PE of 18 ) . In this way we invest more by just adding premier to regular SIP. and invest less when PE ahead to more than 18.

        I have made a self designed worksheet in Excel , where I check the PE is greater or less than the Median PE, If PE is less than median PE then a SIP + ( Median PE – Current PE * 1000) amount is invested.

        and IF PE goes more than 18.7 ( Nifty 10 year Median PE) then SIP is started to subtracting. and almost SIP amount become 0 when PE nearing to 24.
        since last mid of 2011 , I am following this method and it has given me better result than regular SIP. because number of time in these three years market went down than median PE.

        Please sir comment on this strategy.

        1. There are many ways to this and we cant search for the best method. If you are comfortable with it, go ahead. I would personally prefer running a constant SIP and investing additional amts on market dips. I dont care if this is good or not. Just that I am comfortable with it.

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