For young people financial theory advises against investing excess capital in bonds and for investing in stocks[1]. The idea is that in the long run stocks hav

For young people financial theory advises against investing excess capital in bonds and for investing in stocks[1]. The idea is that in the long run stocks have a higher return then bonds and the volatility doesn't matter much (agian this applies only to excess capital). If your portfolio does go south, you've plenty of time to earn some extra income and if things go up you can hit a home run. In practice people tend to increase their relative holdings in stocks, this is highly risky since it's much harder to make up losses and the end of your working life. For me: Where I live a special accounts for retirment do not exist so I don't have an opinion on those. The excess cash I'm now started earn will be invested in simple ETF's. They provide good diversification for a small price. [1] So good for you!