Online Investing Goals

January 22, 2021
Family walking during sunset
Share
How goals work within our Online Investing platform

You can choose from six different goals. Each goal tells us something unique about how you want to invest your funds. Some of the goals have guard rails on them to help protect your money based on needs and time frames. The guard rails are used to calculate your proper asset allocation. For example, we would suggest not being 100% invested in stock if your need for the money is less than one year from the start of your goal. Our guard rails would prevent that from happening. Of course, you can reach out to us at 877.851.8847 or investonline@ubt.com to talk about any possible manual overrides to your goal.

  • General Investing: As the “jack of all trades” option, this goal is perfect for when you want to invest additional funds but don’t have a specific purpose in mind. While you must enter a target date for this goal, it doesn’t impact the goal’s asset allocation over time, which is one reason this goal doesn’t have built-in guard rails. Your score from your risk tolerance questionnaire will be the percentage of your portfolio invested in stocks. For example, a risk score of 68 will result in a portfolio that is 68% stocks and 32% bonds.
     
  • Safety Net: Think of this goal as an emergency fund. Similar to General Investing, you must enter a target date for this goal, but it won’t impact the goal’s asset allocation over time. The Safety Net goal differs from General Investing in that you may need the funds sooner rather than later. As such, there is a safeguard in place to reduce the risk in your asset allocation. The Safety Net goal allows for equity exposure in the range of 20% to 50% equity. Your allocation will not change unless your risk score is changed.
     
  • Retirement Prep: This goal is designed to help you save for retirement and can be used in an individual account or any IRA. The slick thing about this goal is that your risk level will automatically shift to a more conservative portfolio as you get closer to the target date, which should align with your retirement date. Your asset allocation will not continue to change once you meet your target date. At this time, you can consider the In Retirement goal.
     
  • In Retirement: Use this goal if you’ve moved into retirement. Retirement is a great time to reassess your financial plan, and maybe moving your Retirement Prep goal into the In Retirement goal makes sense for your plan. Your target date in this goal should align with your life expectancy. As with retirement planning, your asset allocation will automatically shift to a more conservative portfolio as you get closer to the target date. Don’t worry about the asset allocation, as we have built in safety nets in this goal to help protect your investments. This goal can be used with an individual account or in any type of retirement account.
     
  • Major Purchase: Use this goal to plan for a major purchase down the road — a wedding, a new car, a house down payment, or anything else you can dream up. The target date is when you expect the purchase to happen, and we assume that you’ll be spending the funds on your target date — you earned it! We want to help with the asset allocation on this one as well, so we built in some guard rails to keep this goal from getting too aggressive. Your asset allocation will automatically shift to a more conservative portfolio as you get closer to the target date. The equity allocation will go all the way down to 0% once you hit the target date.
     
  • Travel: Use this goal to plan for a bucket list trip or smaller vacations along the way. The target date is when you expect to pay for that dream vacation, and we assume that you’ll be spending the funds on your goal — you earned it! We want to help with the asset allocation on this one as well, so we built in some guard rails to keep this goal from getting too aggressive. Your asset allocation will automatically shift to a more conservative portfolio as you get closer to the target date. The equity allocation will go all the way down to 0% once you hit the target date.
  • Personal
  • Online Investing

Investment products: Not FDIC Insured — No Bank Guarantee — May Lose Value.

 

Learning Center articles, guides, blogs, podcasts, and videos are for informational purposes only and are not an advertisement for a product or service. The accuracy and completeness is not guaranteed and does not constitute legal or tax advice. Please consult with your own tax, legal, and financial advisors.