🧠 Goals: staying vague to stay flexible?

1st January. The season of resolutions.
But instead of listing ten, I’d like to share just one that could make a real difference to your investing journey.

It’s pretty straightforward, though i bet some of you will pull a face as soon as you hear it : setting clear goals for your investments.

“No thanks, I’m not that uptight : I want to stay flexible!”

Of course, flexibility matters.
But you first still need an initial course to deviate from.

As Seneca put it: when you don’t know which port you’re sailing towards, no wind is favourable.

So what if staying vague:

• stops you from filtering useful info from loud noise?

• makes you choose by default, not by conviction?

• forces you to improvise your exit strategy?

• pushes you towards the wrong investments?

Theory vs reality

Maybe you already have your cheap index ETFs, your costs are under control (management fees, trading fees, etc.) and your portfolio is geographically diversified.

That’s already better than most people who don’t invest at all!

But as Vanguard, the pioneer of index funds, puts it : clear goals are the foundation of success and come first, even before costs or diversification.

That’s because a personal and specific goal gives you a trajectory and a real reason to stay consistent, even when markets shake.

Their research, based on more than 10 years of data, found that investors with clear goals are 3 times less likely to sell in panic during market downturns.

Still not convinced?

In March 2020, panic led to a -35% median loss, as Vanguard reported after studying the behaviour of 18,000 clients during the COVID crash.

The traps of staying vague

1. Constant doubt about your strategy
Without a target amount or deadline, it’s hard to know whether a 15% drop is serious or just normal for your situation. Does it mean you should worry? Or is it just part of the ride? Every correction becomes a reason to start questioning everything.

2. Products that don’t fit your reality
Without a clear timeline, you can’t tell whether you need stability (short term) or can accept volatility (long term).

A 100% equity ETF can make sense over 20–30 years, but it’s risky over 3.
When you lack that clarity, you end up picking what “everyone recommends”, even if it doesn’t suit your real timeframe.

3. Less consistency day to day
Without a direction, it’s easy to forget why you’re even doing this.
Investing becomes an abstract task rather than a meaningful step towards something concrete. Your motivation fades, and your contributions become more irregular.

4. Overreacting to financial news
Negative headlines pile up : “Crash coming”, “Recession ahead”… and before you know it, those fears become your default signal. You’re more likely to sell out of fear rather than follow your plan.

5. An improvised exit
Without a specific end date, you might end up selling everything at once.
But if your goal is to build extra retirement income over 20 years, you could plan smoother withdrawals, for example, gradually shifting to money‑market funds or withdrawing a fixed percentage each year.

Without anticipation, your results depend entirely on where the market stands at that exact moment.

This list isn’t exhaustive, but it shows that a vague goal doesn’t create flexibility, it just removes direction.

The idea isn’t to become rigid or lock your plans forever, but rather to set a simple framework that makes your decisions much easier.

Try this exercise this week (22 minutes)

Morningstar has developed a simple exercise to help investors prioritise their goals.
It’s surprisingly effective, around 73% of participants ended up changing one of their top three goals after doing it.

Step 1: Write down 3 spontaneous priorities (2 min)
Grab a notepad or your phone notes.
Write what first comes to mind: “I want to…”

Then ask yourself, do I truly want this, or is it what I think others expect from me (family, friends, society, social media)?
Write down three priorities.

Add a few details: why / how much / when.
Come back to your list a few days later and choose just one goal to focus on — with a clear target, date, and monthly amount.

Step 2: Compare with Morningstar’s list (5 min)
Read through this list and tick what feels relevant:

• Live better than my parents

• Fund my education / my children’s studies

• Start my own business

• Buy my home

• Go on a dream trip

• Retire earlier

• Support my ageing parents

• Enjoy a calm, secure retirement

• Stop worrying about money day to day

• Leave something for my children

• Face medical costs more easily

• Avoid being financially dependent

• Pay off debts faster

• Build an emergency fund

• Change my professional path

Compare with your 3 spontaneous answers.
Did they change? Why do these goals truly matter to you?

Step 3: Add why / how much / when (10 min)
For each:

• Why? (Travel = 2 months a year? Keep the same lifestyle after retirement?)

• How much? (€50k to start my business? €500/month extra income in retirement?)

• When? (In 7 years or 25 years?)

Step 4: Revisit in 3–4 days and prioritise (5 min)
Let it settle, then ask yourself:

• Which direction do I truly want to take?

• Which goal would I feel proud to have reached?

Then next time markets become turbulent, you’ll know what to check:
“Is this goal still worth it, or have my priorities shifted?”

Take care, and happy New Year 2026!
Nessrine

Articles, research and studies consulted for this edition:

• Vanguard – Principles for Investing Success (November 2023)

• Vanguard – Cash Panickers: Coronavirus Market Volatility (July 2020)

• Morningstar – Mining for Goals: How Behavioural Nudges Can Help Investors Discover More Meaningful Goals (2019)
  
  Disclaimer: This content is for educational purposes only and should not be considered investment advice. Please do your own research before investing. Remember that all investments — including ETFs — carry a risk of capital loss