How does a person's age typically influence their investment strategy?

A person's age typically influences their investment strategy due to varying financial goals, risk tolerance, and time horizons associated with different life stages. Younger investors often have a longer time horizon until retirement, allowing them to take on more risk in pursuit of higher returns. This means they may invest in more volatile assets, such as stocks, which can offer potential for significant growth over time.

On the other hand, older investors are usually closer to retirement and may prioritize capital preservation. As they approach retirement, the need for security in their investment portfolio increases, leading them to shift towards more stable and conservative investments, like bonds or cash equivalents, which offer lower risk and more predictable returns.

Thus, the correct choice reflects this generational difference: younger investors might embrace higher risk for the potential of greater gains, while older investors generally focus on preserving the wealth they have accumulated. This not only aligns with their financial objectives but also mitigates the risk of large losses as they near retirement.