Many of the economic entities in the market undergo a life-cycle experiencing an introduction to the market and transition into a growth stage. It is no different with individuals saving for retirement. After individuals are introduced into the market as wage earners and make their initial efforts to save for retirement, their savings must transition into a growth phase in order for them to retire on their terms. Individuals who fit into this category are generally early to midway through their careers with retirement on a more distant horizon.
Since these individuals have more time till they retire, they have the latitude to be more aggressively allocated within the products they choose and relative to their own risk tolerance. There is a fundamental relationship between risk and return necessitating higher exposure to risk to gain the prospect of higher returns. As such, someone who comes to us with the short-term goal of investment growth will have the latitude to be as aggressive as their risk preferences allow them.