Final answer:
Investment strategies vary by age; younger investors often adopt aggressive strategies for growth while older investors typically prefer conservative strategies for capital preservation. Jesus, at 70, would likely lean toward a conservative approach, but personal circumstances must be considered.
Step-by-step explanation:
Investment Strategies for Different Ages
Investment strategies often change with age due to several factors, including but not limited to the investor's risk tolerance, investment horizon, and income needs. A 30-year-old likely has a longer investment horizon and higher risk tolerance, allowing for a more aggressive investment strategy. In contrast, a 65-year-old is generally aiming for the preservation of capital and income generation, necessitating a more conservative approach to investing. As time goes on, the ability to recover from market downturns diminishes due to a shorter time until retirement. Therefore, a younger investor can afford to take more risks, potentially leading to higher returns, while an older investor will tend to prioritize stability over high returns.
As for the specific case of Jesus, a healthy 70-year-old new to investing, a conservative strategy would generally be more appropriate. This strategy would prioritize protecting the principal and providing a stable, albeit potentially lower, income stream through investments such as bonds or dividend-paying stocks. However, individual circumstances, such as overall wealth, health, life expectancy, and income needs, should be taken into account when tailoring an investment portfolio.