Investors who are younger have time on their side to recuperate losses, so it's often recommended that younger investors hold more risk than those who are older.
Next, figure out your risk tolerance. This is determined by answers that can be put into numbers and some that can't. First, there's your age, income, and how long you have until retirement. Investors who are younger have time on their side to recuperate losses, so it's often recommended that younger investors hold more risk than those who are older.