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Completely. That is simply because various investment mixes are riskier than other people, as well as your tolerance for danger decreases as you age.

Stocks – that are shares of ownership inside a corporation – offer probably the most juice for long-term development. But they are volatile, so they are able to shed you lots of cash within the brief term. When you are young, the long-term development possible of stocks outweighs the dangers. When you are older, not a lot. So you need to scale back around the percentage of stocks inside your portfolio as time passes.

Bonds – that are essentially interest-bearing loans that you simply offer a business or government – provide you with weaker long-term returns than stocks do, but much less volatility. So you need to improve the percentage of one's holdings in bonds as time passes.

Money – or "cash equivalents," like money-market funds – would be the least risky of all. However they also possess the lowest returns. You may not require money inside your retirement account at all till you are approaching retirement age or in retirement.

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