Schwab MoneyWise ®

Financial must-do: Think twice before ruling out stocks. (1 min.)

Carrie Schwab-Pomerantz, CFP ® and senior vice president at Charles Schwab & Co., Inc., discusses how your risk tolerance may evolve as you age and why staying in the stock market can be a smart risk.

You’ve probably heard that as you get older, you should get more conservative with your investments. But don’t be too quick to rule out stocks. It is true that when you are younger you can handle more risk because you have more time to ride out the ups and downs of the market. But if you’re a healthy 50-year-old with a family history of longevity, you could live another 40 years or more. If you avoid stocks, you will eliminate stock market risk, but you also take on risk that your money will lose considerable value due to inflation.


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