In episode 14 on the Wilson Wealth Management YouTube channel, we look at how an investor’s time horizon in attaining planned financial objectives impacts the Investor Profile.
Remember, you will have multiple time horizons based on your individual financial objectives. We discussed this in “Episode 12: Objectives and Constraints”. Your investing strategy and tactics will be different for your shorter term goals versus long term objectives.
You also need to consider the relationship between your specific time horizon and your investment funding and investment risk levels. If your time horizon is close at hand, but you are a long ways from your goal, then you will need to increase your funding pattern and/or assume more investment risk. The longer out your goal, the greater the flexibility you will have on funding and risk assumption.
The interrelationship between an investor’s time horizon, the funding requirements, and risk assumption reflects the concept of compound returns. You may also wish to quickly review “Compound Returns”, “Compound Return Investment Lessons”, and “Real Power of Compound Returns”.
Hopefully they will motivate you to begin your investment program at the earliest possible opportunity.
