Building an investment portfolio requires balancing growth potential with your level of risk tolerance – there’s no one-size-fits-all approach.
Younger investors can typically handle more risk since they have decades for recovery from market downturns.
Asset allocation should reflect your personal timeline, goals, and comfort level with volatility.
A common guideline is to subtract your age from 100 to determine your stock allocation percentage.
Rebalance periodically to maintain your target allocation as different investments perform differently.
Don’t let your emotions drive investment decisions – stick to your long-term strategy through market ups and downs.
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