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Time Frame - Big Sky Financial Solutions

Time Frame



The “investment term” is one of the major factors influencing your financial strategy and the investment selection therein.

The longer the term of the investment the greater the possible exposure to “growth” assets. Growth assets can have a greater degree of volatility in the short term while providing higher returns over a longer time period.

It is important to remember that “Long Term” does not signify a specific time period. Investment term is the period you have invested for. Retirees should consider their entire life span as their investment time frame, whilst a younger person may consider their investment time frame as the event or goal they wish to achieve. This could vary from saving for a deposit on a home to building wealth and saving for retirement.

In the case of retirees investing for their life span, how do we predict the time we may live for? As we have no way of knowing this, we have to rely on statistics. Ongoing research allows statisticians to work out an average number of years an individual may expect to live. Life expectancy, as it is called, is different for men and women and may also vary with the year of birth.

It is extremely important to understand all the factors that influence the way your investment portfolio is constructed. Big Sky Financial Solutions Financial Planners spend time with you to understand your lifestyle goals, your attitude towards risk and the time frame for investment. After a detailed study of all these factors an appropriate financial strategy is recommended.