Risk tolerance!
While risk tolerance differs across individuals, you tend to have a higher risk appetite when you are young. As you age, your risk tolerance comes down. Early financial planning allows you to have an aggressive outlook and invest in relatively riskier asset classes like equities. Investment in equities is needed to gain inflation-beating returns in the long run, which is significant in accomplishing long-term goals like retirement.
#PsychologyofMoney#Miscellaneous#PersonalFinance
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