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3 ways to know if your 401(k) is too aggressive


Published on 2025-03-28 12:21:10 - AOL
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  • Here's how to see if your 401 (k) is too aggressive and, if so, some steps you can take to fix it. Aggressive portfolios have a high exposure to stocks and stock funds, making them more volatile over the short term. Retirement investors need to balance their need for growth and their need for stability.

The article from AOL Finance titled "3 Ways to Know Your 401(k) Is on the Right Track" discusses key indicators that your retirement savings plan is progressing well. Firstly, it emphasizes the importance of maximizing your employer match, suggesting that failing to contribute enough to get the full match is essentially leaving free money on the table. Secondly, the article advises on diversifying your investments within the 401(k) to mitigate risk, recommending a mix of stocks, bonds, and possibly other assets like real estate or commodities, tailored to your risk tolerance and retirement timeline. Lastly, it highlights the need for regularly reviewing and adjusting your contributions to ensure they keep pace with inflation and changes in your financial situation or retirement goals. The piece also touches on the significance of understanding your investment options and not just setting and forgetting your 401(k) but actively managing it to align with your retirement strategy.

Read the Full AOL Article at:
[ https://www.aol.com/finance/3-ways-know-401-k-150039438.html ]