Do You Have Too Much Stock in Your Retirement Account?
Swing for the fences in baseball, and you risk striking out. Swing for the fences in your retirement portfolio, and the consequences can be far more serious. An overly aggressive investing style in your 401(k) can backfire and threaten to put your retirement on hold indefinitely. Sadly, new data from Fidelity shows you might be making this very mistake by holding too much stock in your retirement account.
Fidelity's Building Financial Futures report, published in the third quarter of 2020, reveals that 23% of 401(k) savers are too heavily invested in stock funds. Even more concerning is that baby boomers are the most likely generation to be making this mistake.
If you're in that group, with a birth year between 1946 and 1964, you're either already retired or hoping to retire within the next decade. That's exactly the time you should be less concerned about growth in your portfolio and more concerned about preserving your balance.
Source Fool.com
