[Verse 1] Meet Sarah, twenty-five and starting out Her paycheck's steady, no financial doubt She's got forty years until she'll retire Can handle market swings, her goals won't tire But Tom is sixty, needs his money soon Market crashes make him sing a different tune [Chorus] Time and tolerance, they go hand in hand The longer you can wait, the more risk you can stand Ability and willingness, both must align Risk tolerance and time horizon combined Time and tolerance, the investor's guide When both work together, your wealth can ride [Verse 2] Ability means can you take the hit If markets fall, will you still benefit Your income, expenses, and emergency fund Determine if risk leaves you overgunned Willingness is how you sleep at night When portfolio values are out of sight [Chorus] Time and tolerance, they go hand in hand The longer you can wait, the more risk you can stand Ability and willingness, both must align Risk tolerance and time horizon combined Time and tolerance, the investor's guide When both work together, your wealth can ride [Bridge] Young investors, time's your friend Compound growth will make amends For market dips and volatile days Time smooths out the market's ways Older investors, be more wise Preserve your wealth, avoid surprise When time is short, play it safe Let stable bonds your future save [Verse 3] Conservative, moderate, aggressive too Your risk profile depends on you Match your timeline with your comfort zone Don't invest in what makes you groan If you can't sleep when markets shake Then lower risk for your peace's sake [Chorus] Time and tolerance, they go hand in hand The longer you can wait, the more risk you can stand Ability and willingness, both must align Risk tolerance and time horizon combined Time and tolerance, the investor's guide When both work together, your wealth can ride [Outro] Before you invest, know yourself well Time horizon and risk tolerance tell The story of how your money should grow Take time to learn what you need to know
← Return Objectives in Your IPS | Liquidity Needs and Tax Considerations →