Can someone be kind enough to remind me something about this one, I am drawing a blank on this strategy. Thanks folks… Last few weeks, we’ll all get through this soon and life would be beautiful again.
when you know the exact amount that you’ll need and the exact time at which you’ll need the money, if meeting your objective is absolutely critical (like a primary objective), if you don’t think you can add to your corpus any significant new contributions in case your portfolio suffers a major fall just a few years prior to your goal date … under all these conditions we would be better off with a fixed planning horizon insured strategy. under this, we put the PV of future expense in T-bills (very safe investments) and if there is any surplus, we can try to achieve growth with that portion. in this way, we are sure to meet our goal and we also retain an upside potential given our overall risk tolerance and overall market conditions. hope this helps.