How to Manage Your 401(k) Without Lifting a Finger
A 401(k) can be a great place to stash your retirement savings, but how well it works for you depends in part on what you invest in. Choosing investments can be intimidating, especially for those who have never done it before. But you don't need to be an expert to do a great job. Here's one strategy that can make managing your investments effortless.
Part of what makes investing so complex is that people's needs change over time. When they're younger, most people invest more in stocks, which have higher earning potential but also carry greater risk. As people age, they begin moving more of their savings into safer investments like bonds. These don't grow as quickly, but the risk of loss is smaller, which is important when retirement is near.
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Source Fool.com
