How to Tell If Your 401(k) Is Invested Right for Your Retirement Timeline
The big story in investing is almost always the balance between risk and reward.
How to Tell If Your 401(k) Is Invested Right for Your Retirement Timeline
Overview
There is no single way to invest. Each person is different. However, every investor still needs to figure out how well they are achieving their financial goals. If you are looking at your 401(k) and wondering whether it is invested property, here are some things to consider before making big changes.
Before you can assess where you are with retirement planning, you need to know where you are going. It doesn't need to be a perfectly laid out goal, but you need a target of some kind. One way to create that target is to look at what others have done and at least aim to hit the average savings for your age group, which you can find online. The average savings for those just shy of retirement is a solid end goal, though targeting something higher would clearly put you in a better financial position. An alternative is to use some broad income-based guides, such as 1x your income at 30, 3x at 40, 6x at 50, and 8x at 60.
Image source: Getty Images.
Details
Source
Originally published at www.fool.com.
