As a general rule, the more time you have to invest, the greater risk you may be willing to tolerate. For example, someone who is just beginning their career may have longer to invest and can use the power of compounding interest to accumulate significant potential wealth through regular, automatic investing. This person may be willing to assume greater investment risk as a trade-off for potentially higher returns since they have a longer time frame to offset potential losses.
On the other hand, for someone approaching retirement, lower risk investments are often a preferred choice. This person may have more savings accumulated and be more interested in preserving assets than growing them since they have less time to recover from possible losses. This is why it’s critical to implement risk management that considers your investment timeline and make adjustments to your strategy as you enter different
phases of life.
If you’re looking for a qualified advisor to help guide your investments based on your time horizon, we can help. Together we can focus on growth, income, and capital preservation to help you meet your financial planning goals.
disclaimer: Securities offered through Raymond James Financial Services, Inc., member FINRA / SIPC. Investment advisory services offered through Raymond James Financial Services Advisors, Inc. Todd Dudley & Associates is not aregistered broker/dealer and is independent of Raymond James Financial Services, Inc. Past performance is not indicative of future results. Investing always involves risk and you may incur a profit or loss. No investment strategy can guarantee success.