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Time Horizon Tool
Your investment time horizon is simply the projected amount
of time that you will be investing your money. This tool
takes into consideration such items as your life expectancy
and the age at which you will start to withdraw your money
in calculating an average projected time horizon. The tool
then adjusts your time horizon for your specific risk tolerance.
- Please click on the link above to access the time horizon
calculator and enter the information requested in questions
1, 2, 3a/b (if needed), and 4.
- To advance to the next question, simply use the arrow
keys on your keyboard, press the 'Tab' key, or click on
the desired cell.
- After you have correctly filled out the questions, your
adjusted investment time horizon and the corresponding recommended Radius portfolio will be shown at the bottom of the
page (you may need to scroll down for this).
A note on multiple time horizons:
Investors often have multiple purposes for their investment
portfolio. For example, one might have a $100,000 account
where $50,000 is for a house down payment, $25,000 is for
a child's college fund, and $25,000 is retirement savings.
There are two ways to deal with this situation. The first
is simply to open up a separate investment account for each
of the objectives (e.g. House Account, College Account, Retirement
Account). In this way, the time horizon is clear and easy
to calculate for each account.
The alternative is to have just one "multipurpose"
account. Please note, however, that this time horizon tool is designed for the first alternative.
If you have all your investments in one account, you will
need to calculate your time horizon for each purpose separately
and then manually calculate the weighted average for the entire
account.
If you have any difficulty
using this tool, please contact us.
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