An article in the Wall Street Journal reported the advice that a financial planner offered to a young single male who had most of his savings invested in seven stocks: “Even if he doesn’t plan to use the money soon, she thinks he should invest in something with less risk.”

a. Why does the period of time before someone intends to use funds matter in deciding in which assets to invest the funds?

b. Why might investing all of your savings in seven stocks not be a good idea?