In financial planning, we have our own “cone of uncertainty,” and it relates to Financial Independence. We run retirement projections for clients based on known current information, but the projections run through their life expectancy which can be many decades.
I come from a long line of worriers. So far, over multiple generations, I don’t think it’s done us any good.
From a financial planning perspective, however, asking about “the trade” is the wrong question. Instead, it’s more important to focus on your “trade-offs.”
Already I saw some potential “red flags”, sensing someone who was solely investment-focused as opposed to being financial planning-focused. My suspicions proved accurate when the caller went on to say that he was: looking for significant returns in the realm of 10% per year; expected to outperform the S&P 500; and intended to double his investment in 5 years, as that was when he intended to retire.