With increasing longevity, retirement is not a single period but a multi-stage journey. Financial plans must distinguish between the early, active "golden years" focused on travel and hobbies, and later years dominated by higher, often unpredictable medical expenses. This requires a more dynamic approach to saving and investing.

Reconcile contradictory advice by segmenting your capital. Hold years of living expenses in cash for short-term security and peace of mind. Separately, invest money you won't need for 10-25 years into assets to combat long-term inflation. The two strategies serve different, non-conflicting purposes.

Owning multiple stocks or ETFs does not create a genuinely diversified portfolio. True diversification involves owning assets that react differently to various economic conditions like inflation, recession, and liquidity shifts. This means spreading capital across productive equities, real assets, commodities, hard money like gold, and one's own earning power.

This concept quantifies a reasonable time horizon for any asset, including stocks, by measuring its sequence of returns risk. It allows financial planners to build institutional-style, liability-driven portfolios for individuals by matching assets to specific future goals.

According to investor Mike Green, your investment portfolio is secondary to your life's goals. Frame financial planning around a 'calendar of events'—major life needs and cash flows—first. The portfolio's role is to serve that calendar, not exist as an end in itself.

The modern market is driven by short-term incentives, with hedge funds and pod shops trading based on quarterly estimates. This creates volatility and mispricing. An investor who can withstand short-term underperformance and maintain a multi-year view can exploit these structural inefficiencies.

Simply "thinking long-term" is not enough. A genuine long-term approach requires three aligned components: 1) a long-term perspective, 2) an investment structure (like an open-ended fund) that doesn't force short-term decisions, and 3) a clear understanding of what "long-term" means (10 years vs. 50 years).

An elderly investor rejected a conservative portfolio by pointing to his grandchildren and stating, 'My time horizon is infinite.' This philosophy shifts focus from an individual's lifespan to multi-generational wealth, justifying a more growth-oriented, long-term strategy.

Crescent Asset Management rejects traditional stock/bond allocations. Instead, they structure portfolios into four time-based buckets (e.g., 0-3 years, 3-7 years) to meet specific lifestyle cash flow needs, thereby insulating clients from market volatility.