Learning different approaches to tying Goals to accounts
The last thing we need to consider for setting up Goal-based investing for our Robo-advisor is how to map our Goals to other core objects. In the next few chapters, we will introduce four new objects that all have a relationship to Goals: Risk Profiles, Portfolios, Performance, and Accounts.
Ideally, to achieve the full intention and power of Goal-based investing, we would want to form the following relationships:
- You should be free to create as many Goals as you wish. This seems fairly obvious, as most people have several financial Goals already, and may wish to add more in the future. Therefore, limiting investors to just one Goal would greatly decrease the capability of our Robo-advisor to assist investors in their holistic financial planning.
- You should be able to define a risk profile separately for each Goal. This is quite crucial because one of the main problems of traditional risk profiling is that one...
