Wealth Advisor: Smart Investing is Planning by Timeframes

Imagine your money as a set of stairs, each step representing a different goal.

Smart investors don't just put their money in different things; they also plan when they'll need it.

The first step (0-2 years) is for emergencies, like if you need money quickly.

The next step (2-5 years) is for things like buying a car or going on vacation.

The final step (5-20+ years) is for the future, like retirement.

By planning this way, you avoid making risky decisions when the market changes, like selling stocks when they are down, because your short-term needs are already covered.