Are you thinking about the duration until which you need your money that is invested? #financialplanning
Investment Time Horizon. When most people think of an investment allocation, they think of a stock-to-bond ratio: 60/40, 80/20, 90/10 etc. However, as financial planners, it is our job to think about the micro goals the investments in the portfolio are trying to accomplish. As we get closer to a goal, volatility (the up and down fluctuations of the market) become a larger threat. This is because if there is a market downturn, the assets do not have as much time to recover before the funds that are needed for the goal are pulled out. Below is an example of how we allocate our investments based on when the funds are needed: *This for educational purposes only, and is not intended to be specific financial advice*