← Money & the Inner State
Money & the Inner State · Card 4
Long-Term Perspective
Same allocation.Opposite verdict.
- Retiring next year
- Started earning at 24
- 70% equity looks reckless
- The same looks conservative
The exact same financial decision, how much to save, how much risk to take, looks completely different depending on how many years you have left to let it play out.
In Practice
Putting 70% of savings into equities looks reckless to someone retiring next year and looks conservative to someone who just started earning at 24; same allocation, opposite verdict, because the real variable is time.
Generic Example
Planting a tree looks pointless if you're moving out next month, and looks like the best decision you made if you're staying for twenty years.
Ask yourself
Am I judging this decision by how it looks this year, or by how many years I actually have for it to work?