Investment Tip #3: Consider Why You May be Risk-averse
According to a recent article in Money Magazine, the number of people under age 35 who are willing to put their money at risk has declined. It’s no longer the case that young people are more risk-tolerant than older people! The article reasons that young people who just started investing have only experienced turbulent financial markets, and therefore are soured by the idea of investing and keep most of their money in cash. It seems like Jenny, who is 28-years-old with $100,000 in the bank, may fall under this category. It’s important to remember that taking financial risks, including losing money on paper in the short-term, may be required to meet your long-term financial goals.