Whenever you buy an investment, it’s a good idea to think about how long you want to own it. This is called your investment time horizon. Are you hoping to make a quick profit so you can take a nice vacation this summer? Or are you investing for retirement, which may be 20 or 30 years away? The longer your time horizon, the more volatility (price change) you can tolerate.
Sink the vacation money into a volatile stock fund and you may end up staying home this summer. But put your retirement money into the same fund, and you could... Articles Tagged ‘volatility’
Investment Time Horizon
Whenever you buy an investment, it’s a good idea to think about how long you want to own it. This is called your investment time horizon. Are you hoping to make a quick profit so you can take a nice vacation this summer? Or are you investing for retirement, which may be 20 or 30 years away? The longer your time horizon, the more volatility (price change) you can tolerate.
Sink the vacation money into a volatile stock fund and you may end up staying home this summer. But put your retirement money into the same fund, and you could...
Tuesday, April 28th, 2009
Whenever you buy an investment, it’s a good idea to think about how long you want to own it. This is called your investment time horizon. Are you hoping to make a quick profit so you can take a nice vacation this summer? Or are you investing for retirement, which may be 20 or 30 years away? The longer your time horizon, the more volatility (price change) you can tolerate.
Sink the vacation money into a volatile stock fund and you may end up staying home this summer. But put your retirement money into the same fund, and you could... 
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