In your post, you outlined the potential, individual opportunities. Higher returns inevitably come with increased risk. Who would have thought!?
Without wanting to rely even in the slightest on the “luck” factor, the optimal approach would probably be: simply preserving the value of one’s assets—that is, maximizing protection against inflation.
Anything more than that also means taking on additional risk.
The ideal solution would be the “jack-of-all-trades.” ☺️
Without wanting to rely even in the slightest on the “luck” factor, the optimal approach would probably be: simply preserving the value of one’s assets—that is, maximizing protection against inflation.
Anything more than that also means taking on additional risk.
The ideal solution would be the “jack-of-all-trades.” ☺️
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13H
@MozartsGeist I think the issue is actually even more complicated. The short-term risk is different from the long-term risk. In the short term, the focus is on securing liquidity; in the long term, on protecting against inflation. Ideally, the portfolio should be structured according to these two perspectives (bonds + stocks + gold).
Unfortunately, this is the first significant sum of money my parents have ever had, so they’re significantly overestimating the short-term risks and virtually ignoring the long-term ones. Trying to explain this to them hasn’t worked, though. They’re sticking to their way of thinking. 🤷
Unfortunately, this is the first significant sum of money my parents have ever had, so they’re significantly overestimating the short-term risks and virtually ignoring the long-term ones. Trying to explain this to them hasn’t worked, though. They’re sticking to their way of thinking. 🤷
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