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Which one of the statements is false?

If the interest rate is less than inflation, the purchasing power of the money declines, and the impact on your wealth will be negative.

The risk of capital losses is mitigated over time.

Retirement funds are restricted to a maximum of 25% allocation to equities.

A shorter time horizon calls for lower-risk investments.

1 answer

The statement "Retirement funds are restricted to a maximum of 25% allocation to equities" is false. There are no specific restrictions on the allocation of equities in retirement funds. The allocation may vary depending on the individual's risk tolerance, investment goals, and retirement plan guidelines.
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