Monday, October 24, 2016

Age and investment risk

Your age has a lot to do with the amount of investment risk that you can assume.

That means when you are nearer to your retirement age, you must not invest in risky products.

If you lose your capital, you will not have enough time to earn and save for retirement.

A young person who is just out of college can assume higher investment risk.  In general, a risky investment brings more rewards.

However, that is just a general rule.

Many young people are very risk averse.

If they lose as much as 30% of their capital, even if it is paper loss, they cannot eat or sleep well.

They will lose their temper and blame everyone else.

That is why it is important to know your risk appetite before making any investment. 

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