On the other hand, if you are younger and have a longer timeline ahead of you, there is ample time for you to ride out the ups and downs of the market. Riskier financial assets may undergo more fluctuations, which makes it harder for your portfolio to recover in the short term. Generally speaking, the older you are, the shorter your time horizon.Ī shorter investment horizon means that you should be exposed to less risk. AgeĪge is the most obvious factor in determining your time horizon. The good news is, whatever your answers are, you can find a way to meet your financial goals as long as you understand your investment horizon.Īge, financial goals, and risk tolerance are major factors that influence how you would structure your portfolio, and whether you wish to lean towards the high-risk, high reward end, or stay in a relatively safe zone.
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