A typical young investor should have most of their retirement money allocated in common stocks.

Question

Quizplus · Accepted Answer

As a young investor, there is typically more time to ride out market fluctuations and take on a higher degree of risk in pursuit of a higher return. Common stocks historically have the highest returns over the long-term, making them a suitable investment for young investors planning for retirement. It is important, however, to diversify the investments even within the common stock asset class.

A Typical Young Investor Should Have Most of Their Retirement