You can take more risks when you are younger because there’s more time to recoup your errors. But If you lose a big chunk of capital, it still sets you back.
Sure, it is better to lose chunks of capital at age 30 than when you’re 60, or older. Nevertheless, look at a compound interest table, and see what happens to any amount of principal, when you lose a large sum early on.
Therefore, it’s essential that investment risks always be a concern in your planning. (See the Earl J Weinreb NewsHole® comments.)
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