PRINCIPLE 2: KNOW YOURSELF
The conventional wisdom says you should be willing to accept more risks when you are younger and then gradually shift to safer investments as you approach retirement. But this is only a general rule. There is plenty of flexibility for you to satisfy your individual needs and preferences. To help you choose the most appropriate funds for your investment needs, answer the following series of questions:

"What stage of life cycle am I at now?"
"What are my investment goals?"
"What kind of returns am I looking for?"
"How much risk am I comfortable with?"

 

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