Risk, time and your comfort level

Investment values rise and fall. How much that matters depends on when you need the money and how you'll feel when values drop.

Time horizon

Money you won't need for decades has time to recover from downturns. Money you need soon doesn't, which is why many people shift toward steadier investments as a goal gets closer.

Risk tolerance

Ask yourself honestly: if your account dropped by a third in a bad year, would you stay put or sell? Choosing a mix you can stick with matters more than chasing the highest possible return.

General education only, not investment advice. Nickel Gains isn't paid by any broker, fund company or adviser.