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> I have a 5 year investment horizon, and are willing to take on a large risk. These two statements would be considered contradictory by common financial stand
by auxym 5y ago
> I have a 5 year investment horizon, and are willing to take on a large risk.
These two statements would be considered contradictory by common financial standards. 5 year horizon means you need the money in 5 years. However, high risk means that in 5 years (a short amount of time compared to normal equity volatility) there's a sizeable probability that you will have negative returns.
I recommend the questionnaire here as a starting point:
https://retirementplans.vanguard.com/VGApp/pe/PubQuizActivity https://retirementplans.vanguard.com/VGApp/pe/PubQuizActivit...