A Word on Investment Time Frames

Here’s a hypothetical situation I want to pose: You’re a business owner in your early 50s who is doing quite well and have accumulated some cash—let’s say a few hundred thousand dollars. Since you want to grow this money in the stock market for retirement purposes, you decide to reach out to a professional you like and feel you can trust and get started on making investments.

You soon come to understand that succeeding in the stock market requires a long-term strategy, but, a few months later, realize you need to tap into your assets to fund a renovation or some other major project. What should you do?

Well, the truth is that the stock market is not a place for short-term money. If your circumstances have changed since you made your investment, you may need to liquidate or lighten up your assets in a way such that the stock market isn’t “holding you hostage.”

What I mean by that is, given the cyclical nature of the market, those who need to liquidate shortly after investing may be forced to sell at a loss.

So, ultimately, you really need to know your time frame before you invest.

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If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.