When Short-Term Investments Make Money Sense

Available for Interviews: Chris Janeway

Chris Janeway is Founder & CEO Fourth Point Wealth and coaches investors throughout southern CA.  He is also a national speaker, financial coach, and advocate for financial literacy.

What Chris Janeway can say in an interview about
Financial Literacy:

What makes an investment short term? Typically, a short-term investment plan is around 1-3 years in length depending upon the situation. Some short-term investment plans can be discussed for periods under 1, depending upon the goal they are saving toward, such as a new home purchase or a child’s wedding. 

The goal of a short-term investment is about protecting what you’ve built:

Priority #1

Paramount to this financial strategy is to maintain a low-risk allocation because there isn’t enough time to recoup from significant market volatility. The last thing you want is to save diligently for a down payment on a home and when the right house comes along, your savings have decreased in value and you lose the house. 

Priority #2

Second, it essential is to keep liquidity. Any short-term investment plan should absolutely maintain an “easy out” position. For investors looking to hedge against inflation while they keep a short-term horizon, often they’ll want to pull the trigger on the right purchase with that saving on somewhat short notice. A great example is an income property investor. They’re often in competitive situations for the ideal properties and when the right opportunity arises, they may need fast access to that capital. 

Given the goal of liquidity and low volatility, most short-term investors consider investments like short-term bonds, bond funds, or t-bills. These aren’t sexy by any means but they align to the goal. CDs are common choices but they may fail the liquidity test. Similar to CD’s, bank savings and money market accounts simply have too low yields to fight inflation effectively given current interest rates. The mistake investors make, especially in a low-rate environment like today, is trying to get higher returns and taking on too much risk. The most common example is taking on high-yield bonds. Investors feel safe because they’re told bonds are safe investments, but high yield (or junk) bonds are often more correlated to equity markets than they are to bond markets. It can be a slippery slope getting away from the original target. 


Interviews: Chris Janeway

Chris Janeway is Founder & CEO Fourth Point Wealth, a wealth management and coaching firm which manages over $100 million, helping families build confidence and grow their wealth.

Chris founded Fourth Point Wealth to fix the broken investor experience. Chris works with individuals and organizations who value collaboration with a financial coach, and he’s developed a process that helps investors identify their goals, pinpoint gaps, and truly understand their wealth. Chris is passionate about client education and believes that, through a clear focus on coaching, investors are more likely to remain confident and committed to their long-term plan and avoid common imprudent decisions that damage our financial future.

When Chris is away from the office, he loves to golf, coach youth sports, and enjoys spending time outdoors with his wife, Katy, and their sons, Brennan and Graham.

Jo Allison
Managing Editor
Director of Public Relations
Success In Media, Inc.

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