If you tend to procrastinate with your financial goals, GoalMine could be just the thing. Albert Einstein said the 8th wonder of the world was compound interest, and you can’t benefit from it if you don’t get started saving and investing. If you have a vague idea of what you want to achieve financially, GoalMine is set up to help you clarify that into an achievable goal, and automatically help you reach it. But does it work as described, and is this the best option available?
Overview
There are savvy investors out there, and there are novice investors as well. GoalMine is aimed at those that are pretty much just getting started in the world of investing, or those that just don’t want to think about it too much, but want to do something about their future. Having a system that helps you visualize your goals, and also helps track your progress can be invaluable when you’re just starting out.
The Claim
They say that you can set up your goals, easily find investments, and then automate the entire process so you don’t have to think about it any more. They say that they help you find investments that fit your life, and allow you to get started with just $25 as an opening deposit.
The Hype
The hype for these sort of investment sites is that you are making a sound financial decision by using them. Of course in the grand scheme of things it’s better to invest than not invest, but there are dozens if not hundreds of different investment vehicles at your disposal, so thinking that there’s one site out there that should be the focal point of your investment strategy is a bit much.
The Cost
GoalMine doesn’t charge you to open your account, and they don’t’ charge fees to make transactions. When you buy into mutual funds you are charge 1.2% -1.4% depending on which one you go with, and they’re “no load” so you won’t pay to buy the shares. You also don’t have to worry about your account balance being too low, or paying a monthly maintenance fee.
The Commitment
The GoalMine system is set up so that you can set it and forget it. Once you set your goal and enter in how long you want to take to achieve it, or how much you can afford to put into your account each month, you basically don’t have to do much but check in to see how it’s doing.
Evaluation
The user experience is pretty fluid here, and they’ve thought about a lot of different features, and give you a lot of control over how much you want to invest, and how you want to go about reaching your financial goals. It makes it really easy to set reasonable goals for yourself, and also to make adjustments until they become more reasonable. For example, by bumping up the time needed, or bumping down your monthly payment, you can get your mind around it, and it will be more likely to actually happen.
We like the sharing feature, allowing others to see your financial goals may seem a little invasive at first, but it does put some accountability to what you’re planning, and if they’re feeling generous or you’ve got a birthday coming up, they might feel inclined to help pitch in towards your goal if they’re aware that you’re going for it.
Strictly Savings
Investing in mutual funds is not the only service GoalMine uses. If you want to avoid that altogtether you can just open a savings account with them. This is totally fee free and still allows you to use their goal planning platform to visual see how far you’ve come and where you still need to go. This is a great way to be able to use their system to help plan your goals, without paying any fees, and automating the process so you can save without consciously thinking about it.
Final GoalMine Review
GoalMine isn’t the only investment site on the planet, and competition is fierce. There are other services that have similar user interfaces, but have more flexibility as to how your money is invested. GoalMine is a little constricting in that they only have a small handful of ways to invest your money, and it could turn out that none of them will give you the best return on your investment.
However, if you know that nothing will get invested if you’re left to your own devices, then it’s in your best interest to set it and forget it with something like GoalMine. If you’re OK with the idea that you could earn more by investing on your own, but don’t feel up to the research, and don’t want to deal with the fees and minimums required at stock brokerages, this might be the answer for you.
Our Recommendation
The great thing about GoalMine is their low barrier to entry. By only needing $25 to get started, most people can justify that, and run out of excuses not to start saving. Our recommendation is to try it out and see what you think of the returns, and whether or not it’s helping you reach your goal. You can always withdraw your funds and move them into a better investment you find down the road, but this is a great way to get things started, and to enter the investment world with a pair of training wheels so to speak.
