Advisory Firm Launches Sites Funding People’s Goals With Gifts

A blog post alerted me to GoalMine, which bills itself as the simplest way to save and invest for your goals.

At first, I was put off by the idea of raising money for personal goals this way, but it’ actually not a bad idea.

A young couple that is trying to buy a house can publicize their financial goals using GoalMine on Fabebook. When a soon-to-be-married couple registers at a department store or online, they’re doing the same thing.

The big difference is they are likely to register household items and not a house! In other words, GoalMine allows a young couple to focus on longer term goals rather than small items. That’s a good thing.

The problem with GoalMine is that the advisory firm behind it, Gratio Capital, launched a couple of mutual funds in which the gifts gets invested, and the funds are not inexpensive. The bond fund carries a 1.15% expense ratio, while the stock fund has a 1.4% expense ratio, and that’s after a waiver of the manager’s fee. That’s about 1% a year more than you would need to pay for index funds.

But the idea of allowing young savers to announce their goals via social media and get friends and relatives to fund them is a good one.

What do you think?


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