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Staggering Your Investments: What It Is, What It Means For Payouts, And What It Means For Your Future

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There are so many ways to invest today that you might feel a bit overwhelmed with how to invest and how to manage your wealth once you have accumulated some of it. Private wealth management services can help you, especially in the area of staggering your investments. If you are not sure what this means, the following information can help define it for you, define what it means for your investment payouts, and what it means for your future.

What "Staggering Your Investments" Means

When you stagger your investments, you are investing in several products that will have multiple payout times staggered out over several months and years. For example, if you invest in bonds, you know that it will take "x" number of years for those bonds to mature. Then you will want investment products that pay out sooner than the bonds and products that will pay out later than the bonds. In this way, you are setting the stage for your wealth to be paid out at different times, which can be a very wise move especially if you do not have great budgeting skills. Other, smaller investments, such as short-term annuities and short-term CDs can fill in the gaps set by your longer-term investments so that you (almost continuously) have money coming in from everything in your investment portfolio.

What It Means for Payouts

As you invest more and more, be sure to fill in the gaps in your payment schedules for your other investments. Your financial planner can help you determine what these gaps are, what amounts of money you would like returned to you on your investments, and what investment products can best accomplish this in each case. The idea behind staggering your investments is to get monthly, quarterly, semi-annual, and/or annual lumps of cash from your investments when you retire. If you and/or your financial planner have done an excellent job of staggering your investments, you can be quite comfortable and relaxed about your future.

What it Means for Your Future

When you have done well to stagger your investments and set all of them up to pay out on specific dates in the future, you can relax. You will not be quite as anxious as someone who has done nothing to prepare, or has not done enough. You can budget and plan well in advance, knowing that you will have "x" amount of dollars on all of your future payout dates, and that will allow you a lot more freedom to plan travel, major purchases like a summer home in another state or a country home in your home state, and even pursue your favorite hobbies.