General wisdom suggests that as you age, you should start allocating more towards fixed income-generating bonds. But Graham believes, that choosing which type of investor you should be is based on your willingness to put time
and effort into your portfolio and your circumstances. It should not be dependent on your appetite for risk or your age.
Before choosing how you invest, you should consider the following factors:
• Are you single or married? Does your partner work, and how much money do they earn?
• Do you have children? If not, do you want children? When will high costs, such as college education, kick in?
• Will, you inherit money at some point? Or, will you have to spend money keeping a parent in a care home?
• Is your job secure?
• Do you need your investments to supplement your cash income for you to survive? If so, you should have more money in bonds
• How much money can you afford to lose on investments?
The Intelligent investor core principle lies in investments basis research and understanding of the fundamentals of the company. Two ways of doing this can be - One investing in low costs index funds and second, a talented
and capable financial advisor.