Money needed soon has less time to recover from market declines than money needed decades later.
Why it matters
Retirement is not one date; different portions of the plan may have different timelines.
What to focus on
- Use multiple time horizons
- Avoid treating retirement as one withdrawal
- Revisit as the date approaches
ExampleFunds for the first few retirement years may be positioned differently from money intended for much later years.
Put it into practice
- Estimate years to first withdrawal
- List near- and long-term needs
- Review allocation with a qualified professional
Write down one decision and schedule a short review. Small, repeatable steps are easier to maintain than a one-time overhaul.
Educational information only. Money in Reach does not provide financial, investment, tax, insurance, credit, mortgage, or legal advice.