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Timeline Investment Strategy

The Timeline Investment Strategy separates your investment plan into manageable portions so that you can create appropriate strategies for money needed for short term, intermediate, and long-term goals. Each segment of this strategy plays an important role in working toward the long-term goal of investing for retirement. The Timeline Investment Strategy allows you to use short-term money for your current living expenses and allows your long-term growth portfolio to remain untouched until it is needed. The see how the Timeline Investment Strategy works, start with the description of the short-term assets and work your way up to long term.

Short Term (0-24 months): 
First, work with your Avantax Advisor to determine the amount of money you need over the next two years to live comfortably. If you are still working, this may only be an emergency fund. However, if you are nearing or in retirement, this segment should have enough money to meet your income needs over the next two years. The focus of this segment is principal protection. Utilizing cash and other liquid investments is advised. 

Intermediate Term (the next 3 to 6 years):
The next segment well include assets that will generate the income needed for the next four years of your life. You will need the help of your Avantax Advisor to determine how much to allocate to the intermediate term, how to invest your money, and how to manage risk in a way that makes sense for your investment goals and investment preferences. While it may be important to protect principal, this segment may also have more potential for growth and risk that the 0-24 month segment.

Long Term (7 years and further):
The final segment includes assets set aside to generate a long=term retirement income. The greatest risk to a retirement that lasts 20 years or longer is inflation. If inflation averages around 3%, after 20 years have gone by $100 is worth only $54. In this segment, we are seeking growth assets over time while balancing investing with your comfort level for risk in mind. Every investor is different, and the guidance and expertise of your Avantax Advisor is important in creating and monitoring a strategy that will help you pursue your goals. 

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