Finances at Four: Building a Timeline for Financial Goals

If figuring out your finances is one of your goals for 2019, experts recommend you change your investment strategies depending on what you are saving for.

Rob Grostick with Carroll Retirement Plans & Investments says there are three investment categories, short-term, mid-term and long-term.

Short-term goals

Anything that can be accomplished in less than three years is considered a short-term goal, Grostick says.

“Those are the goals that are nearest for us, and we can’t necessarily take a lot of risk with that,” he says.

Trying to save for a house, car, college that’s coming up in a year or two or pay off debt would all be considered short-term goals.

Investment strategies:

  • Money in the bank
  • Short term CD
  • Short term U.S. government bond

Mid-term goals

Goals that are three to 10 years out would be considered mid-term goals, which Grostick says are things that we can take a portion of market-risk on.

“Maybe we’ll buy a middle of the road mutual fun, but we’ll still want some sort of cash, whether it’s savings, checking, CD, something like that,” Grostick says.

Long term goals

Saving for retirement or for a newborn’s college or trade school education would be considered long-term goals.

“As we get further out, we can afford to take more market risk on now,” Grostick says. “So maybe we find a good mutual fund to do that and let the markets grow for us.”

Chart it out

People usually have a mix of shot, mid and long-term goals, so Grostick says it’s best to chart out your goals and start allocating towards what the most pressing need is.

“If we don’t plan things out, we forget about them and don’t do them,” he says.

Watch the video above for more information, or contact Carroll Retirement Plans & Investments for professional help by heading to carrollretirementplans.com.

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