Fiction: Young people don't need to worry about taking on risky investments.

Fact: Typically, younger investors do have a longer time horizon for their goals (e.g., retirement), but that doesn't necessarily mean they should take on high-risk investments. Time horizon is one of the defining factors in creating a picture of an individual's risk tolerance, but it is not the only factor.

Overall goals and timeline for each goal, as well as personal feelings about volatility and risk in general, must be explored. A young person, like anyone else, needs a sound long-term strategy tailored to his or her situation.


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