Asset allocation for fund investors

Time horizon an important factor
3 of 7

In a broad sense, the amount of time you have to invest will dictate your investment strategy.

The retirement portfolio of a 25-year-old is necessarily different from retirement portfolios of 65-year-olds heading into their nonworking years.

"When you're investing, the time frame is extraordinarily important. As we've seen in recent years, you could have the greatest investment in the world, but in a matter of weeks it can come down drastically because of panicked selling that has nothing to do with that company or security," says Paul Mladjenovic, Certified Financial Planner and author of "Stock Investing for Dummies" and the "Unofficial Guide to Picking Stocks."

A recovery can take several years, which may be too long if you have short-term goals such as buying a car or house or funding college.

As a general rule, the more time you have, the more risk you can take.




Show Bankrate's community sharing policy
          Connect with us

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

CDs and Investment

Where should I put my money?

Dear Dr. Don, I would like to begin investing money to use in retirement. I want to be conservative with these investments, and I don't know where to begin. Any advice on retirement investing would be appreciated. Thank... Read more



Dr Don Taylor

ETFs in retirement accounts

The availability of ETFs in retirement accounts gives investors access to a wider array of investments, but not all choices are appropriate in these accounts.  ... Read more

Partner Center

Connect with us