If you’re like most couples in your 40s, 50s, or early 60s, you’ve probably started to ask some big financial questions. Maybe retirement is on the horizon. Maybe your kids are (finally) financially independent. And maybe you’re wondering, What should we actually be doing with our money now?
With social media full of stock tips, crypto trends, and flashy investment gurus promising overnight wealth, it’s easy to feel overwhelmed or even a little behind. But here’s the truth no one’s shouting on TikTok: The best way to choose your investments has nothing to do with the market… and everything to do with time.
Not how much money you have. Not whether you heard about the next big thing. The real question to ask yourself is: When do we plan to use this money?
Because that answer will tell you how (or even if) you should invest it.
Let’s walk through it.
Less Than 18 to 24 Months? Skip the Market
If you’re planning to use that money in the next year or two, whether for a home remodel, a new car, a bucket-list trip, or just life’s “what-ifs” — it shouldn’t be invested. It should be saved.
That includes your emergency fund. You want this money somewhere safe and accessible. Think high-yield savings account or short-term certificate of deposit. Not stocks. Not crypto. Not even a “conservative” investment fund.
When the timeline is short, your top priority is preservation, not growth.
Two to Five Years? Get Moderate
If your timeline is a little longer, maybe you’re planning a second home, helping with grandkids’ education, or prepping for semi-retirement, then investing makes more sense. But you still want to play it smart.
This is the sweet spot for a moderate investment portfolio.
It means spreading your money across stocks, bonds, and other lower-volatility assets to balance growth with protection. You want your money to grow, but not be at risk of major loss when you need it in a few years.
Six to Ten Years? Add Some Spice
With a longer timeline, you can afford to be a little bolder. A moderately aggressive portfolio might make sense here.
Think more stocks than bonds, and a stronger focus on growth. But still with a safety net built in.
If you’re planning for retirement in the next decade or thinking of making a big lifestyle shift, this is often the “grow and protect” phase. You’ve got time to weather some market ups and downs, but not enough time to go all in.
Eleven or More Years? Time Is Your Superpower
Now we’re talking long-term. When you’ve got more than a decade before you need the money, you can afford to be aggressive.
This is where a more stock-heavy portfolio often shines, and options like Roth IRAs, long-term annuities, and strategic retirement accounts can really work in your favor.
More time means more compounding. And compounding is where wealth really builds.
But even in aggressive portfolios, you still want a plan. Regular check-ins, rebalancing, and adjusting based on your life and goals are essential.
The Bottom Line
Your investment choices shouldn’t be based on trends or tips, they should be based on timing. Ask yourself one question: When do we want to use this money? Once you know that, the rest becomes a lot simpler.
FAQs
1. How do we figure out what timeline our money falls under?
Start by labeling each chunk of your money with a purpose. Emergency fund? That’s short-term. Retirement in 12 years? Long-term. Vacation in three years? Medium-term. Once you know the purpose, you’ll know the timeline.
2. Can we still invest if we’re close to retirement?
Absolutely, as long as you’re investing according to your timeline. Even in retirement, you may have money you won’t touch for 10 or 20 years. That portion can still be invested with growth in mind.
3. What’s the risk if we invest money we need soon?
The risk is that the market dips when you need to withdraw the money, and you’re forced to sell at a loss. That’s why anything you need in the next couple of years should be saved, not invested.
4. Where do annuities or Roth IRAs fit into this?
A Roth IRA is great for long-term, tax-free growth, especially if you don’t need the money for at least five years. Annuities can offer guaranteed income in retirement, which is helpful once you start withdrawing money rather than building it.
5. We have $250,000+ in assets. Should we manage this ourselves or work with a financial planner?
If you enjoy managing your finances, go for it! Just make sure you have a clear plan and aren’t investing emotionally. But for many couples, a financial planner can offer peace of mind, help with tax efficiency, and make sure your investments match your goals and timeline.
