Summary of Time and Risk
Summary of Time and Risk
As an educated investor, you should recognize that investment returns appear less volatile over long holding periods. This is true even with stocks, thus arguing for their inclusion in long-term portfolios. It is also wise to consider the other end—that is, the effects of withdrawals on a portfolio, and plan accordingly.
What You Have Learned
- Reduction of Risk over Time
- Potential to Reduce Risk or Increase Return
- Diversified Portfolios in Various Market Conditions
- Potential Shortfall: The Risk of High Withdrawal Rates
