Investments in Index Funds Investor Risk and the 5 Ways to Evaluate It

Investor Age and Asset Allocations

Regarding investment plans, younger investors should be better off with a portfolio featuring more stocks and greater growth opportunities. Older investors nearing or already in retirement should prefer portfolios with a greater percentage of bonds and their more reliable revenue streams and a lower proportion of stocks and their associated risks. The traditional 60/40 buy and hold stock strategy may yield an average of 10 percent per year over a long enough timeline, which may or may not be the correct proportion for you or your financial needs.