How Long Should Your Time Horizon Be in the Stock Market? - A Wealth of Common Sense

For a specific financial goal with a 5-year time frame, investing in the stock market can be risky due to the wide range of potential returns and the risk of loss when the money is needed; instead, utilizing a target date fund or robo-advisor that diversifies and adjusts risk tolerance over time is a more suitable option.

awealthofcommonsense.com

Relevant topic timeline:

8/29/2023

Avoiding Market's Worst Days Beats Chasing the Best

Investors often focus on trying to time the market to catch the 10 best days, but they often overlook the 10 worst days, which can significantly impact portfolio performance; therefore, avoiding these periods of severe capital loss may be a more logical strategy.

8/30/2023

Jim Cramer’s guide to investing: How to invest as you get older

As you age, your investing goals may change, with less risk being ideal in later years according to CNBC's Jim Cramer, who recommends investing the first significant amount of savings in an index fund while gradually curating a diversified stock portfolio and considering fixed income assets in the thirties or forties.

9/1/2023

1 Ridiculously Easy Way You Can Beat the Stock Market Experts

Investing in the stock market can be simplified by buying high-quality businesses at reasonable valuations and holding them for the long term, and index investing in low-cost funds that track the S&P 500 can outperform professional fund managers while eliminating the need for complex decision-making.

9/8/2023

Target-Date Funds Turn Retirees into Unwitting Contrarians

Target-date funds, which automatically decrease equity allocations as retirement approaches, are turning retirees into contrarians by selling stocks as the market rises and buying when it falls, according to a study by MIT and Brandeis University. The study also found that the growing popularity of target-date funds has made the stock market less volatile.

Topics

Posted 8/24/2023, 7:25:36 PM