2Sem.
If it's grandma and she's never had anything to do with shares, I would urge caution!
Not everyone can cope with a 50 or 60% slump, as stocks have already had a few times. The stress level often rises to such an extent that beginners sell at the lowest point and never want to talk about it again.
Ergo: a pure equity ETF solution is not for grandma because of the vola. An allocation with lower volatility would be better, e.g. Ray Dalio's all-weather portfolio. It rises less, but almost always. It's much more relaxed for Grandma. And ultimately for you too.
Not everyone can cope with a 50 or 60% slump, as stocks have already had a few times. The stress level often rises to such an extent that beginners sell at the lowest point and never want to talk about it again.
Ergo: a pure equity ETF solution is not for grandma because of the vola. An allocation with lower volatility would be better, e.g. Ray Dalio's all-weather portfolio. It rises less, but almost always. It's much more relaxed for Grandma. And ultimately for you too.
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@Epi How did you come up with grandma?
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•2Sem.
@DusselDuck Sorry. Mother-in-law always makes me think of grandma... You're right. But the factual point remains the same.
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