Tiempo y tolerancia al riesgo en un plan de retiro - YouTube

When we take our investment portfolio into account, we need

to consider certain things before making a selection.

Which things? What is our timeline?

Our timeline is basically how long we will be invested

in the mutual funds we have selected. The longer we stay invested,

the more opportunities we will have to generate interests, dividends, and capital profits.

At the end of the day, this will only make our portfolio grow.

Another thing we need to keep in mind is our risk tolerance,

which goes hand-in-hand with our timeline.

If I have a long time, I won't be needing my money for seven or eight, even ten to fifteen years!

So I may be able to have a more aggressive risk profile

with the intent to invest a bit more in the stock market,

which is considered a somewhat riskier instrument. We're looking for additional growth.

In theory, the more risks we take, the better our reward should be.

This is known as the risk/reward ratio.

However, we need to assess whether we have this tolerance. I could say that,

based on my age, I should be investing in an aggressive portfolio. But this doesn't mean

I won't feel concerned or nervous whenever I see a market fluctuation

in my portfolio, as we have seen these days.

In essence, and as history has proved, the market will show

fluctuations and volatility over time, which means our money will go up and down,

though with the expectation that we will end up higher than where we started.

So we need to consider the instruments we're using,

our timeline, and our risk/reward ratio. And how that will affect

my portfolio's volatility. The more aggressive, the more volatile it will be.

The less aggressive, the less volatile, which means it will fluctuate less but with less opportunity to grow.

Other things we need to take into account when selecting those

those investment instruments is our age. The younger we are, the longer our timelines may be.

If we're somewhat older adults, we know our timeline

is a little shorter, so we need a more

conservative portfolio.

When do we need that money? We could need it for retirement, or we may want it later on.

Consider when do we need that money and when will we be using it.

It will help us determine the type of investment portfolio we should have. And ultimately,

how are we going to withdraw this money from our retirement plan? Will it be by regular periodic payments,

or will it be a lump sum? This will also help us determine whether the investment portfolio

should be more or less aggressive.

We should also keep in mind that this is not the right time to withdraw your retirement

plan fund, provided that we have an emergency fund and other assets

to use during this emergency. Avoiding such withdrawals from our plan will place us

at an advantage for our retirement and help us limit the potential for loss.

We have noticed a downturn in mutual funds, investment portfolios, and the general market.

This means that, if I were to withdraw money right now,

I would have to sell those assets at a price that is at one of its lowest points.

So we should definitely try to keep the money invested,

in as much as possible, and continue making our contributions.

We can always look for more information out there.

One of the places I would recommend to learn more is: https://www.popular.com/en/services/financial-planning/, through

Popular's website, in the Your Money section of the Popular blog,

or by contacting us with your questions or requests at [email protected].