If you’re investing in your 401(k) or another retirement savings vehicle, you’re already off to a good start. There is no “right” or “wrong” when it comes to investing, but it does come down to what you feel comfortable with from a risk perspective and when you’re going to need those retirement assets.
Someone who’s 30 years away from retirement can likely take a more aggressive approach with a higher equity allocation. If you’re five years away from retirement and at the tail end of your career, it’s prudent to be mindful of market direction and conserving assets ahead of taking the step towards your golden years. No matter where you fall on that spectrum, it’s essential to understand how you’re allocated to make sure that your portfolio matches your goals and objectives to stay on track.