Matching resources to different goals
A fictional household needs money for an essential payment in two months and also saves for retirement decades away. What should a financial-advisor project distinguish?
A
A long time horizon guarantees a specific investment return.
B
The near-term need for accessible, stable funds and the different risk and time-horizon considerations of long-term investing.
C
Both goals necessarily require placing all money in the same volatile asset.
D
The near-term payment can be ignored because retirement is further away.
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