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Introduction to Investing: Time Horizon

Updated: May 25, 2021

By Robert Warther, Warther Private Wealth

Maybe you have just started your career, and you want to make sure your retirement goals are set properly. Maybe you are nearing the end of your career and need to reduce your risk tolerance. Either way, you may hear the term time horizon mentioned in regards to investments. Time horizon is one of the most important aspects of building your retirement plan.

Time horizon is the amount of time that you will be investing your money.

Your time horizon could be short term to fund small goals, such as a down payment for a house, or funding your children’s college education.

Your time horizon for retirement purposes will obviously be much longer. The primary goal in retirement is to ensure that sufficient assets are available to cover financial obligations when they come due until you no longer need funds (IE: not outliving your retirement). This can mean making investment decisions that will span decades.

It’s never too early to start investing, so determining when to start is easy: start now. Does your new job offer a 401k plan? Take advantage of it as soon as you can.

How do I determine my time horizon? Your investment advisor will consider several factors when helping to decide what is appropriate for your time horizon, including your goals, age, life expectancy, lifestyle, and income needs.

What type of assets should I have in my portfolio? If you have a longer time horizon, you can be more aggressive with your investments. If you have a shorter time horizon, you will need to choose investments that have less risk.

Choosing investments and building a portfolio with regards to time horizon is complex. Experience and expertise will give you the best chance of achieving your goals. We’d welcome the chance to sit down and talk about what is important to you, and how we can help.

Robert Warther may be reached (239) 276-7939, or

Securities offered through Independence Capital Company, Member FINRA/SIPC, a registered broker-dealer. Investment Advisory services offered through Warther Private Wealth, LLC, a Registered Investment Advisor ("RIA"), registered in the State of Ohio. Independence Capital Company, Inc and Warther Private Wealth are not affiliated. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. The information contained herein is based on sources we believe reliable but is not considered all-inclusive. Past performance is no guarantee of future results. Please contact your Financial Advisor with information regarding specific investments. Opinions are our current opinions only and are subject to change without notice. Generally, investments are NOT FDIC INSURED, NOT BANK GUARANTEED, and MAY LOSE VALUE.

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