Investment Time Horizons are a concept that Alex Cabot and Ed Lambert feel is often misunderstood by investors.
Alex starts with the two main factors we need to consider: how long until you need the money and how long you will draw on it. This will affect how you invest, even if the spending goal is the same distance away.
Next, Ed explains why the duration of the distributions is so vitally important. This relates back to the word of the year so far in 2022 - inflation. It will cost more to buy the same goods and services in the future as it does today. We walk through some real world numbers to illustrate this point.
Today's key takeaway is that both time horizons - how long you save and how long you withdraw - are equally as important. And being too aggressive - or too conservative - can be very costly mistakes.
Have questions about your financial future? Alex and Ed are always happy to have a conversation, whether you're a client or not.
You can always email them at info@birchrunfinancial.com or give them a call at 484-395-2190.
Or visit them on the web at https://birchrunfinancial.com/