QVGS Goals waterfall

QVGS Goals Waterfall

Investment Plan for the purpose of funding and financing goals

Overview

The QVGS Waterfall is designed to fulfill goals by assigning them different attributes in order to rank them. Prioritizing goals allows the investor to fund and achieve multiple goals in parallel by setting clear targets. This means the long-term and time-critical goals get funded first after which the incremental funding can spill into aspirational short-term goals.

Goal Attributes

Goals are Personal

Individuals and Families have multiple goals that spark their interest. However, the money available for these goals is always finite (more money means more number of goals which may be more expensive). It is often difficult to choose between 2 very “similar” goals when the funding is finite. This requires prioritization of one goal over the other so as to complete at least the more important ones first than others. The QVGS Goals Waterfall assigns attributes to various goals in order to make choices easier for individuals and families to prioritize. We have identified 4 essential attributes.

Key Features

Warterfall Design Principles

Funding vs.
Financing

Funding portfolios can be used for Financing goals but not vice versa.

Essential vs.
Aspirational

Essential portfolios can be used for Aspirational goals but not vice versa.

Time-critical vs.
Open-ended

Time-critical portfolios can be used for Open-ended goals but not vice versa.

Long, Medium
or Short-term

Short-term portfolios can be used for Medium and Long-term goals and Medium-term portfolios for Long-term goals but not give versa.

Investment Objectives

Core & Satellite Objectives
of the QVGS Goals Waterfall

Core Objectives
Satellite Objectives
Portfolio Cascade

Core & Satellite Portfolios
of the QVGS Goals Waterfall

Core Portfolios
Satellite Portfolios
QVGS Waterfalls

Ready-made Investment Plans
for Individuals and Families

Waterfall Model

The pecking order of funding

The Waterfall Model is a method of splitting available funding among different needs and desires that allow for funds to follow an uneven distribution. The Waterfall Model can be thought of as a series of pools that fill up with the available funding and then once full, spill the excess funding into the additional pools that are lower in the pecking order (of needs and desires).

While some of the needs and desires are common to most individuals and families, others can be highly personalized to the specific investor. The key to successfully investing, in order to fulfill the needs and desires, an investor should be able to prioritize them in a structured and logical way without biases and events clouding the judgment of the investor.

Some of the needs are essential and weaved so deeply into the structure of life, that they may be overlooked easily while the investor is focussed on the more obvious aspirational desires. The solution to defining the pecking order is to follow an investment plan which covers the expected and unexpected aspects of investing for individuals and families.

QVGS Wealth waterfall
Investment Plan for the purpose of becoming rich, staying rich, creating new wealth, and leaving a legacy
QVGS Cash flow waterfall
Investment Plan for the purpose of supplementing and replacing income or generating profits