When most people think about investing, they immediately ask one question: “What’s the highest return I can get?”
But that question often leads investors down the wrong path.
In this episode of The Ridgeway Report, we take a different—and smarter—approach. Instead of chasing returns, we focus on aligning your investment strategy with your goal.
Why Goal-Based Investing Matters
Whether you’re saving for a wedding, college education, down payment, or helping a family member, your investment strategy should be built around:
- How much money you need
- When you need it
- How much you can contribute
- How much risk you’re willing (and able) to take
Chasing higher returns without understanding risk can derail even the best financial intentions.
The Real-World Scenario
Let’s say your goal is to gift $60,000 in 12 years.
You already have $15,000 saved, and you can contribute $500 every three months.
Using time-value-of-money calculations, we determine that you only need to earn about 5.03% annually to hit your goal.
That’s it.
Not 10%. Not 12%. Not 20%.
Why Chasing Higher Returns Can Hurt You
Many investors assume that a 10% investment is only “twice as risky” as a 5% investment. In reality, the additional risk could be three, four, or even five times greater, depending on the asset.
Risk isn’t determined by the return—it’s determined by what you invest in.
Fixed Income vs. Market Risk
If you can find a fixed product offering your required return, your goal becomes more predictable. If you invest in the market, variability matters—but averaging your required return over time is what truly counts.
That’s why annual reviews, rebalancing, and understanding sequence of returns are critical components of retirement and investment planning.
Final Thoughts
Financial planning isn’t about perfection—it’s about preparation.
By setting clear goals early, giving yourself time, and choosing investments intentionally, you create flexibility, reduce stress, and increase the odds of long-term success.
If you’re planning a future gift or major purchase, the smartest move you can make is planning ahead.
📺 Watch the full video above for the full walkthrough.
📞 Schedule a consultation if you’d like help applying this strategy to your personal situation.
About the Author
A.B. Ridgeway, CPWA® is the founder of A.B. Ridgeway Wealth Management and host of The Ridgeway Report. He specializes in helping retirees and pre-retirees create reliable income, invest with clarity, and make confident financial decisions.
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About The Ridgeway Report:
As Christians, we were taught to be good stewards over our tithing and giving to the less fortunate. But when it came to our personal finances and investing we were left clueless on what the Bible says. What does the Bible say about managing debt, leaving a legacy, investing, and planning for your retirement? Mr. Christian Finance answers these and many other questions because we want to teach you how to become rich and righteous!
Meet A.B. Ridgeway:
A.B. Ridgeway, MBA, CPWA®️ (info@abrwealthmanagement.com) is the owner and Christian Financial Advisor with A.B. Ridgeway Wealth Management. With a decade in the finance industry, his goal is to give believers clarity around the most confusing topic in the Bible, money, and tithing. A.B. Ridgeway helps tithing Christians become cheerful givers but unlocking their money-making potential, so they can prosper and be the great stewards of the wealth God has entrusted them with.
*Disclaimer: This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy or the completeness of any description of securities, markets or developments mentioned. This is strictly for information purposes. We recommend you speak with a professional financial advisor.
*Some elements in this blog was created, restructured, edited or summarized by AI and may have altered from the original content. Warning: There may be errors that were creating during this transition that were not in the original content. Please double check all information.
