But what if stocks don’t do well? What happens then to my retirement?”

Risk can be a quotient topic. Risk tolerance equations can change when divisible by time but they can also change with knowledge. Some of the long-held, common sense wisdom regarding risk might actually be more fallacy than fact. When considering your investment time horizon, Famed Boston University professor Zvi Bodie and financial planner Paula Hogan recommend that investors focus on how much they are willing to lose first, not how much they are willing to gain.

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Does risk really decrease over  your investment time horizon?

There is a common investing axiom that investing risk diminishes with time. Bodie and Hogan, in a piece titled “For Long-Term Investors,...