In Progress
4) Investing & Asset Growth
Risk tolerance and time horizon
Investing is a long game. You should only invest money that you do not need for at least 5 years.
- If you need money for tuition next semester, keep it in a High-Yield Savings Account (HYSA). If you are saving for a house in 10 years, put it in the stock market.
- If the market drops 20% tomorrow, will you panic and sell? If yes, you should have more "Bonds" (safer but slower growth). If you can stay calm, you can have more "Stocks" (faster growth but more "bumpy").
Free Resource: Determining Your Risk Tolerance
Resources
Record your progress
Mark this subsection complete to track your progress.
Share this: