10 Retirement Pitfalls: Investing Too Aggressively

The other side of #9 Investing Too Conservatively is this last pitfall, being too aggressive with your portfolio. 100% in foreign small cap stocks is probably too high for anyone, while you do have the potential for high returns, you also have the potential for high losses. While it is advocated that younger investors take some sort of risk, taking too much risk is just as bad as taking too little risk. For the older investor, you want to balance your desire for high returns with your need for capital preservation. If you take a 20% hit in your 40s, that could derail your retirement plans and push you to work a few more years to make up for it. Find that happy middle ground based on your risk tolerance and age.

Source: Yahoo Finance