December, 2025 | Notes from a Small Investor

Why a 20–30 Year Investment Plan Is Not as Simple as It Looks

Playing with historical data leads to several observations that may be relevant for anyone considering long‑term investing on their own, for example building a pension outside of traditional pension funds.

Data and Methodology

The analysis is based on the following data sources:

Comparing Balanced and High-Risk Strategies Over 20 Years. Part#1

Building long-term financial stability is more than just investing — it requires structuring your money according to risk, goals, and liquidity needs. Many advisors recommend dividing investments into three layers:

Safe fund: extremely liquid, covers urgent needs (accessible within days or 1–2 weeks)
Medium fund: moderately liquid, accessible within 4–12 months, used for larger purchases or income protection
Risky fund: long-term growth, higher volatility, less liquid

This article compares two strategies for a young investor with modest income, no major family obligations, and the comfort of parental support in emergencies. We simulate 20 years of investing, including a financial crisis and post-crisis recovery.