Setting Realistic and Favorable Investing Timelines – Why You Should Do it With an Expert like Rani Jarkas.

Investing for short-term goals differs from long-term investment, so it’s critical to know the “when” of your financial objectives. Your investment timeline—which refers to the amount of time you are willing to keep your money invested—will determine what investment strategy is best for you.

Short-Term Timeline (3 years or less)

The shorter your timeline, the less risk you should take. In a short-term portfolio, you’ll want to prioritize safety and liquidity rather than development. Among the products suited for short-term timelines are liquid investments—those that can be sold with zero to little loss of value. These include money market accounts, treasury bills, and other lower-risk investments. The maturity dates on these types of investments are short. Treasury bills, for example, mature in 13 or 26 weeks.

If you have a short-term timeline, investment manager Rani Tarek Jarkas recommends choosing investment products that don’t have any penalties or costs for taking your money out before the maturity date. Do note that these investments pay lower interest rates than longer-term products—often not enough to keep up with inflation. But because you plan to use the money right away, inflation should not have a huge impact on its purchasing power.

Mid-Term Timeline (3 to 10 years)

Investing optimally for a mid-term timeline is often harder than investing for short or long-term goals. This is because you need to find a successful balance between protecting what assets you have while also achieving growth that will help offset inflation.

For managing a portfolio of mid-term investments, Rani Jarkas Financial Services recommends balancing your portfolio with a combination of high-quality fixed-income products (like high-yield CDs and mid-term government bond funds) and modest-growth investments (like a diversified stock fund). It’s essential to monitor the investments closely. You also have to be prepared to sell during major market downturns to limit your losses.

Rani Jarkas of Cedrus Investments also recommends establishing limits for gains and losses if you’re investing for a mid-term timeline. For example, you can decide to sell investments that increase by 20% or decrease by 15%, or whatever number you’re comfortable with. As the deadline of your timeline approaches, it’s best to reinvest your portfolio in less volatile products.

Long-Term Timeline (10 years and more)

The longer your timeline, the more risk you can afford to take with your investments. Many long-term investors choose to invest the majority of their portfolio into growth investments, which may include individual stocks, stock mutual funds, and stock exchange-traded funds (ETFs).

No matter what your timeline is, through Cedrus Investments, Rani Jarkas Services can provide you with access to global markets, particularly Greater China. Cedrus has teams of reputable local investment managers who speak the language, understand the culture, and have built relationships with key players in business communities in different parts of the globe. Contact us to learn more.