Should my risk tolerance change as I get closer to a goal like retirement or buying a house?

Your capacity for risk should shift as the goal nears, even if your personality doesn't. Money you'll spend in the next few years shouldn't ride the stock market, because a badly timed 30% drop right before you need it can be devastating and you'll have no time to recover.

A common approach is a 'glide path': hold mostly stocks while the goal is far off, then gradually shift toward bonds and cash as it approaches. For a house down payment two years out, that money belongs in high-yield savings, CDs, or short-term Treasuries, not equities. For retirement, you de-risk over years, not overnight. The principle is simple: the shorter the runway to spending, the less volatility that specific pot of money can afford, regardless of how bold you feel.