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Why Investors Need to Consider Their Time Horizon


Chuck Roberts, Managing Director/Investments of the CR Wealth Management Group of Stifel, provides comprehensive wealth management strategies for his clients throughout the United States. One of the factors Chuck Roberts considers before creating a wealth management plan for a Stifel client is his or her time horizon.

One of the most important considerations for an investor is how much time he or she is able to dedicate to investing. Simply put, each investor should ask themselves how long they intend to hold an investment. If you are investing with a certain goal in mind, for example, raising your child’s college money or your own retirement savings, then accurately determining your time horizon will help your financial advisor create an appropriate plan for you. The last thing you want to happen is to invest in a long-term, low-return security and fail to accrue enough money for your goal or invest in a high-risk, short-term security, only to have your investment wiped out in a market downturn.

Chuck Roberts has transparent discussions with his clients to identify their time horizon so he can tailor investment plans that reflect their timeline. For example, an investor with a short-term horizon – of fewer than five years – has little time to recover in case of a market downturn. This investor’s portfolio will, therefore, be comprised of more low-risk investments. 

An investor with a long-term horizon of more than ten years is in a better position to weather the volatile stock market. Essentially, he or she has more time to recover from downturns. For this investor, stocks may be a better investment since they offer a greater potential for capital appreciation in the long run.

Stifel, Nicolaus & Company, Incorporated | Member SIPC & NYSE

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