As individuals progress through different stages of their lives, it is essential for them to adapt and change their investment strategies accordingly. This is especially true when it comes to managing a 401k account, as retirement savings need to be optimized for maximum growth and security. With their long-term record of 10 percent annual returns, stocks are an attractive investment, but they fluctuate a lot in the short term.
Discovering the average 401(k) balance for different age groups in 2024 can provide valuable insights into how one's savings compare to their peers. Learning how to benchmark your retirement savings and boost your 401(k) can help individuals set realistic goals and make informed decisions about their investments.
Target-date funds are designed to age with you by automatically rebalancing your portfolio from growth investments toward more conservative ones as retirement approaches. These strategies can help investors generate income while preserving capital in retirement, ensuring a comfortable and secure financial future.
Many financial firms publish savings benchmarks that show the ideal levels of savings at different ages relative to an individual's income. This information can serve as a guide for individuals looking to assess their current savings and make adjustments as needed to meet their retirement goals.
If you're a 50-year-old 401(k) investor, you could still have 15 years (or more) until retirement. 50-year-old investors still need to carefully consider their investment strategy and asset allocation to ensure their savings continue to grow steadily over time.
Typically, people invest their 401(k) dollars into funds, pooled investments that spread money across hundreds (if not thousands) of different stocks and other assets. This diversification helps reduce risk and maximize returns over the long term, making it a popular choice among retirement savers.
- Set realistic goals. First item for consideration: your savings and investments thus far. Hopefully, you've been stashing away money consistently. Individuals may need to change the investment strategy and asset allocation they used in their 30s when they reach their 60s.
