Why SMART Goals Fail: The Goal Hierarchy Method That Actually Makes Resolutions Stick

Markets celebrated the Fed's rate cut with a rally, then absorbed Powell's hawkish reality check about what comes next.

The quick scan: Wednesday delivered the widely expected quarter-point rate cut, and markets initially cheered with a strong rally – but the celebration was tempered by Chair Powell's message that future cuts will be harder to justify. All three major indices finished solidly higher, with the Dow jumping nearly 500 points and the S&P 500 briefly flirting with its all-time record high. Yet the Fed's projections signaling just one more cut in 2026 (versus market hopes for more) reminded investors that getting what you want doesn't always mean you'll keep getting it.

S&P 500: +0.67% to 6,886.68 – coming within striking distance of its record closing high of 6,890.89 and proving that even "hawkish cuts" can satisfy bulls who've learned to take what they can get
Dow Jones: +1.05% to 48,057.75 – with blue-chip stocks leading the celebration as if making up for lost time after Monday and Tuesday's cautious retreat
NASDAQ: +0.33% to 23,654.16 – with tech stocks joining the party but showing more restraint than their cyclical cousins – perhaps reading between the lines of Powell's careful language

What's driving it: The Fed delivered its third consecutive quarter-point cut, lowering rates to 3.5%-3.75%, but the "dot plot" projections showed officials expect just one more reduction in 2026. Powell's press conference struck a careful balance, saying the Fed is "well positioned to wait and see how the economy evolves" – code for "don't expect us to keep cutting just because we did it three times." The Fed also announced it will resume buying Treasury securities (starting with $40 billion Friday), while projecting stronger GDP growth (2.3%) and persistent inflation through 2028. Three dissenting votes highlighted internal divisions about whether cutting rates further risks reigniting inflation.

Bottom line: Markets got their rate cut and rallied, but Powell's message was clear: this might be the last one for a while. With the S&P 500 up 17% for 2025 and the NASDAQ over 22%, investors who've benefited from this year's rally should perhaps focus less on hoping for more cuts and more on whether current valuations can hold without continued Fed support. Sometimes the best gift is knowing when the party might be winding down – it gives you time to plan accordingly.

The Problem With SMART Goals (And What Actually Works)

The scoop: You've probably heard of SMART goals. Specific, Measurable, Achievable, Relevant, Time-bound. Set a SMART goal, the theory goes, and you'll achieve it.

Except most people don't.

Sports psychologist Vladimir Novkov explains why: "The SMART framework enjoys widespread popularity, but its origins lie in corporate management rather than behavioral psychology." It's designed for quarterly business objectives, not human behavior change.

The problem? SMART goals focus exclusively on specific actions. "Run 30 minutes every Monday" checks all the boxes. But miss one Monday and it feels like total failure. You restart next week. Next week becomes next month. By February, you've quit.

Sound familiar?

Novkov recommends a different approach: the goal hierarchy. Instead of just specific actions, structure your resolutions across three interconnected levels.

Superordinate goals capture the "why" – your identity. "I am a healthy, independent person." This is who you want to be.

Intermediate goals provide direction – improving cardiovascular fitness, maintaining mobility. These connect identity to actionable areas.

Subordinate goals define the "what" – running 30 minutes Monday, taking stairs, doing yoga twice weekly. Your specific actions.

The magic happens when all three work together. Miss your Monday run? You haven't failed your identity as "a healthy person." You have multiple paths to honor that. Take a long walk instead. Do stretching. Try different movement.

This flexibility – what psychologists call "equifinality" – prevents the all-or-nothing thinking that kills resolutions. You're not succeeding or failing at "the plan." You're finding multiple ways to live according to your values.

For L-Plate retirees, this is particularly valuable. Retirement means disrupted routines, health changes, travel, caregiving, or days your body doesn't cooperate. A rigid "run every Monday" goal doesn't survive that reality. But "be a healthy, active person" with multiple paths? That's sustainable.

Novkov also recommends seeking synergy. Choose activities satisfying multiple goals simultaneously. A morning outdoor run supports weight loss, but also improves sleep by regulating circadian rhythm and reduces stress through movement. One action, multiple benefits.

This matters because you're often juggling multiple health priorities – cardiovascular fitness, bone density, stress management, sleep quality, social connection. Finding activities that address several at once is more efficient and more motivating.

The hierarchy also protects against identity crisis. When work ends, many lose the structure that made exercise happen. Without external frameworks, fitness becomes something you actively choose rather than something built in.

A superordinate goal – "I am a person who stays active" – creates internal motivation independent of external structure. The intermediate and subordinate goals adapt to your new lifestyle without threatening the core identity.

Most importantly, this approach acknowledges that motivation fluctuates. Some weeks you'll crush your goals. Other weeks you'll do the bare minimum. Both are fine as long as you honor your superordinate goal. Progress isn't linear, and the hierarchy accounts for that instead of pretending otherwise.

As you think about 2026 fitness goals – or adjust the ones you quietly abandoned last March – consider building a hierarchy instead of just specific targets. Who do you want to be? What areas support that identity? What actions can you take?

And remember: missing one workout doesn't make you a failure. It just means you need another way to be the person you're becoming.

Actionable takeaways for L-Plate Retirees:

• Start with identity, not action. Before setting specific fitness goals, define your superordinate goal. "I am a healthy, independent person" or "I am someone who takes care of my body" creates the foundation everything else builds on.

• Map your intermediate goals to multiple subordinate actions. If your intermediate goal is "improve cardiovascular fitness," list 5-7 different activities that support it (walking, swimming, cycling, dancing, gardening). This gives you flexibility when circumstances change.

• Look for synergy in your activities. Choose exercises that address multiple health priorities simultaneously. Morning walks in nature improve fitness, regulate sleep, reduce stress, and provide vitamin D – four benefits from one activity.

• Create "equifinality" backup plans. For each specific fitness commitment, identify 2-3 alternative actions that honor the same superordinate goal. This prevents all-or-nothing thinking when plans fall apart.

• Review your hierarchy monthly, not daily. Check whether your subordinate goals still serve your intermediate and superordinate goals. Adjust the specific actions freely, but keep the deeper identity stable.

Your Turn:
Looking back at fitness goals you've set and abandoned, were they mostly specific actions without a deeper "why" – and is that why they didn't stick?
What would your superordinate fitness goal be if you framed it as identity rather than achievement?
What activities could you choose that would address multiple health goals at once – and would that make them more appealing than single-purpose exercises?

👉 Hit reply and share your story – your insights could inspire fellow readers in future issues.

If today's article about goal hierarchies changed how you're thinking about fitness in retirement – or gave you a framework that might actually work this time, you can shout me a coffee on Ko-fi. Your support helps us bring behavioral psychology insights like this to the L-Plate community, without the corporate wellness jargon that usually comes with them.