Why goals matter
Saving and investing are not the same. Saving usually means setting money aside in cash, where the amount stays stable but grows slowly. Investing means putting your money into assets such as shares, bonds or a managed fund. The value can rise and fall, but investing has more potential to grow over time. A clear investment goal gives the rest of your decisions a purpose. It can help you choose an investment option, work out how much you may need to contribute track your progress and stay focused during short-term market movement.
Focus on building a specific amount of money by a certain point in time.
Examples: first home deposit, education costs, family holiday or long term wealth.
“I want my KiwiSaver to reach $25,000 over the next eight years for my first home deposit.”
“I want my investments to provide me $40,000 for a family holiday within the next five years.”
Focus on the regular income you would like your investments to support.
Examples: retirement income, supplementing part‑time work or replacing income from term deposits.
“I want my investments to provide around $3,000 per month, to support my lifestyle in retirement.”
“I want my investments to replace the income I am receiving from my term deposits.”
Your timeframe helps shape how your money could be invested. If you need the money soon, stability may be more important. If your goal is further away, you may be able to accept more short-term movement in pursuit of long-term growth. Useful guide:
Generally, the longer your timeframe, the more short-term movement you may be able to accept in pursuit of long-term growth.
For income-based goals, it is also useful to think about how long you may need the income to last.
All investments can move up and down in value over time. Your comfort with risk, or risk tolerance, can change as your circumstances change.
Being specific about your outcome can make it easier to choose an investment option and track your progress.
This can help you understand whether your goal is realistic, how much you may need to contribute and whether your investment settings are still appropriate.
Thinking about retirement in terms of how much “income” you will pay yourself, can bring clarity to what a “comfortable retirement” means to you.
This may include:
As you move into retirement, your focus often shifts from building your investments to drawing a regular income from them. A few things can help you plan for this stage:
Ready to own your first home? Buying property for the first time can seem daunting, but KiwiSaver can help.
Investment goals are not set and forget. They work best when they are reviewed as your circumstances change. You may want to review your goals when:
Keeping your goals up to date can help ensure your investment approach continues to support what matters most to you. Review your goals regularly to ensure your investment settings meet your needs, especially if your timeframe or comfort with risk has changed.
Milford’s Digital Advice tools can help you review your goals, timeframe and comfort with risk. The Milford KiwiSaver Retirement Calculator can also help you check whether you’re on track for the retirement lifestyle you want.
Our team can provide financial advice to help you understand more about the Milford KiwiSaver Plan or which Milford Investment Fund option may suit your goals.
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If you have complex investment needs or are looking to invest more than $500,000, Milford’s Wealth Management and Advice Service can offer a dedicated adviser relationship and active portfolio management service.
