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compelled to sell equity holdings if market prices plummet, because their basic spending needs are preserved for the next few years. 3. It is more than just financial assets. Individuals accumulating assets should certainly consider their disability insurance to be part of their longevity portfolio, since a disability that significantly reduces their cash flow would be a devastating blow to their future plans. The same is true regarding pensions, Social Security, life insurance, and long-term care insurance at various parts of the life cycle. 4. It coordinates portfolio performance to your financial plan. Goal-based investing enables investors to connect their investment performance to their financial plan and focus on progress toward their goals instead of less important measures like market performance. According to Dr. Richard Thaler, a professor at the University of Chicago and one of the founders of the field of behavioral economics, he states "benchmarks are one of the great evils in preventing successful investment at every level." The S&P500 might have returned 1.19% in 2015, but the index does not know you or care about your goals. Therefore we see this as an arbitrary benchmark. Goals-based investing requires investors to focus on long-term absolute performance in the context of their financial goals, instead of comparing their portfolios to index VUE ON FORTUNE V U E N J . C O M 123

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