Broker Check

Golf and Your Time Horizon

April 16, 2019


If last summer's scorecards indicate anything, I'm not the most qualified person to write a blog post on golf. But there's a parallel between golf and investing that I'll discuss despite my uninspiring lack of golfing ability, which I am working on.

Great golfers master distances. From the tee to the fairway, the fairway to the green, and then into the hole, a different approach is used depending on the target distance.

A similar concept applies to pursuing financial goals over different time horizons, whether long-term (15 or 20+ years), medium-term (5-15 years), or short-term (0-5 years).

Are you saving for retirement? A child's education? A down payment on a home? Like using different golf clubs to reach different distances, you should use a tailored investment approach to pursue financial goals depending on your time horizon:

For example, longer investment time horizons should typically include an asset allocation with riskier assets (i.e. stocks) and less of a need for liquidity. Asset allocations for shorter investment time horizons should typically include more conservative assets (i.e. bonds) and a greater need for liquidity.

However you choose to prioritize your financial goals, make sure you have the right investment approach to give yourself the highest probability of success in pursuing those goals.

Questions, comments, or golf tips for this summer? Feel free to reach out to me or another member of our team.




Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. Investing involves risk including loss of principal. Asset allocation does not ensure a profit or protect against a loss.