I understand that long term goals have higher risk tolerance but isn't retirement goal is the most important goal hence with lower risk tolerance?
王暄_品职助教 · 2022年01月07日
so time horizon is more important? because there are a few factors to evaluate risk tolerance: time horizon, portfolio size, goal importance, spending needs and flexibility.
As I replied, from the aspect of Time horizon, we could say the risk tolerance of a retirement goal is relatively high. But you can also say that from the aspect of goal importance. the risk tolerance of a retirement goal is relatively low.
王暄_品职助教 · 2022年01月06日
You have to consider from the aspect of Time horizon, since a retirement goal is long term so the risk tolernace is relatviely higer from this point.
ǎng-áng💗 · 2022年01月07日
so time horizon is more important? because there are a few factors to evaluate risk tolerance: time horizon, portfolio size, goal importance, spending needs and flexibility.