ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -With several decades left until full retirement age, you should focus on stocks, as you will have enough time to benefit from the long-term growth potential while riding out any short-term volatility.

Detailed explanation-2: -Long-term investments almost always outperform the market when investors try and time their holdings. Emotional trading tends to hamper investor returns. The S&P 500 posted positive returns for investors over most 20-year time periods. Riding out temporary market downswings is considered a sign of a good investor.

Detailed explanation-3: -There’s risk, but there’s also potential for huge rewards. But if you’re still decades from retiring, the stock market’s probably the best option for your retirement savings.

Detailed explanation-4: -Balance income and growth Ideally, you’ll choose a mix of stocks, bonds, and cash investments that will work together to generate a steady stream of retirement income and future growth-all while helping to preserve your money.

Detailed explanation-5: -The advantage of long-term investing is found in the relationship between volatility and time. Investments held for longer periods tend to exhibit lower volatility than those held for shorter periods. The longer you invest, the more likely you will be able to weather low market periods.