Stocks and Shares

When you’re younger, saving for something that’s years away—like retirement—may not seem important. But that is exactly when you should start saving. The more time money is invested, the more time it has to grow. And one of the ways to give money a chance to grow over the long term is by investing in some form of stocks—stock mutual funds, exchange-traded funds (ETFs), or a well-diversified mix of individual stocks.
An appropriate mix of investments should be based on a person’s time horizon, financial situation, and tolerance for risk. But, as a general rule, those with longer investment horizons have the capacity to take on the risk associated with a significant, broadly diversified exposure to stocks because there is likely time to recover from any short-term losses.
No matter your age—and how far away retirement is—you want to enjoy your retirement years and do the things you want without having to worry about money. To help you achieve that, the historical odds favor a diversified mix of investments with a significant exposure to stocks. So, beware of investing too conservatively. Get used to riding the ups and downs of the market. For those investing for the long term and saving regularly, a downturn can even help boost savings—because the same amount of money can buy more shares of a stock, stock mutual fund, or ETF at lower prices.