17th February 2022 - 6 min read
When it comes to saving money, there is usually more than one thing we’re saving up for. Whether it is for retirement, a new home, a new smartphone, or even your annual holiday, it is extremely unlikely that you’ll focus only on one of these goals at a time. And of course, now that we know its importance, many of us are now building up an emergency fund, too.
With multiple financial goals to save up for, it is easy to lose track or worse, get demotivated from the seemingly slow progress. Thankfully, an investment concept called goal-based investing has helped many people across the world to achieve their short- and long-term financial goals. Goal-based investing has many benefits – but the most important one is helping you stay focused and maintain your investment contributions to reach your targets. And, thanks to technology and smart algorithms, you can get fairly accurate estimates on when you can reach these goals based on your investment input, and then adjust them accordingly.
Amanah Saham Nasional Berhad (ASNB) recently upgraded its myASNB mobile app to include a new goal-based investing feature named Target Labur designed to help users save up for multiple goals. Let’s find out how you can achieve your financial goals with Target Labur!
As mentioned earlier, goal-based investment focuses on helping you reach your financial goals, giving purpose to your investments instead of earning as much return as possible. This gives you a mental model of a target to achieve, which will motivate you to stay invested and hit those goals.
Before placing an investment, you can choose your personal goals and a suitable investment portfolio or strategy will be recommended to help achieve these goals. For example, if your goals are to save up for retirement (a long term goal) while setting aside some funds to travel next year (a short term goal), a goal-based investment platform may suggest a more aggressive portfolio or strategy for the long-term goal to maximise returns over a longer investment horizon, and a more conservative one for your holiday fund to preserve your capital.
As goal-based investments give you focus on the end result, it also helps you to be less jittery towards poor market conditions and make impulsive decisions.
One aspect of traditional investing is to seek positive returns over time, but without a specific goal or profit amount, an investor can be tempted to take profit or cut losses without further consideration. Worse, the investor may even stop investing and use the funds to spend on unnecessary items instead.
But when you invest with a clear reason in mind – and especially for important ones – you’ll be more likely to remain motivated throughout the investment cycle, regardless if it is a short-term one or a longer-term investment.
With the enhanced myASNB app, users can set up not just one goal, but multiple investment goals easily. Simply click on Target Labur on your myASNB and select a suggested goal or create your own goal. The selection of goals available on Target Labur covers both short- and long-term goals including creating an emergency fund, planning for a retirement and various others.
Once you’ve selected your goal, you can then key in your target amount and time frame to reach it according to your own preference. The app will then offer suggestions for monthly investment amounts based on myASNB’s investment products, their risk profiles, and historical returns. What’s more, you can create as many goals as you like, so each and every one of your savings goals can have its own entry.
After setting your goals, it’s only right to keep a close eye on the progress so you know you’re on track and stay motivated. With Target Labur, you can get an overview of your progress towards your goals on the app conveniently. Moreover, the overview report is presented in an easy-to-understand format that includes charts showing overall progress towards your goals.
In addition, it also breaks down the goal into smaller monthly goals for a more focused perspective. As investors are able to observe their progress and actively participate in realising their goals, they will feel more encouraged to stay committed and continue setting aside funds each month.
And then, there’s the highly satisfying feeling of accomplishment when you meet the target amount within your targeted time frame!
Although movement restrictions have eased, we’re still practising social distancing measures to prevent the spread of Covid-19 and may not leave our homes as often as before. The upgraded myASNB app and its Target Labur feature bring convenience to investing as users can get started digitally without visiting any physical branches. Simply follow the steps below to get started:
If you’re already investing with ASNB, the ‘Initial Investment’ feature on Target Labur allows you to allocate part or all of your existing investments in ASNB products towards a goal, giving you a “headstart” to reaching your targets.
To further encourage Malaysians to invest, ASNB is always running contests to give users the opportunity to win some prizes. This time around, ASNB users who set up two goals worth RM5,000 on Target Labur will stand a chance to win prizes worth up to RM200,000.
Now that you know more about Target Labur, you can download the myASNB app and start working towards your financial goals today!
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