Liability Matching

You have one kid graduating high school in 12 years. You’ll need about $100,000 for their college. Another kid will head off to college 14 years from now. Another $100,000 needed then.

When you invest, you have to keep these future cash needs in mind. You need to have enough to pay these college bills.

By taking those looming future payments in mind, you’re involved in liability matching. You are matching your investing goals to future obligations you’ll eventually have to pay.