Chapter 4: Time Horizons
There are three risk tolerance profiles to know: conservative, moderate, and aggressive. Here are the benefits of each:
If you need an option that could maintain your money with little growth in the short term, consider a conservative approach.
If you have time on your side and are willing to try to make money with some degree of risk, go with a moderate or aggressive profile instead of a conservative one.
The Just the Facts: Investing Worksheet is a great resource to help you identify your risk profile.
Your Chapter 4 Checklist:
- Watch the Time Horizons video
- Download the Just the Facts: Investing Worksheet
- Think through your goals and how investments could help