Time horizon is the length of time before you need to access your money. Before you make an investment, you should ask yourself how long you intend to invest. Risk tolerance is associated with time horizon.
A person nearing retirement has a shorter time horizon than someone who is further away from retirement. The older investor may have a lower risk tolerance than the younger investor because the older investor has a shorter time horizon to bear sharp rises and falls in the market. The younger investor may accept greater risk since he or she has more time to bear the rises and falls of riskier investments.
*Market-associated risk is involved with investing. INPRS' investment fund choices are not insured. INPRS cannot guarantee against the risk of loss based on your self-directed investment fund choices.