Reduce Risk as You Approach Retirement
You should know how to manage your risk. Younger people have more leeway, whereas those nearing retirement age should be a little more careful by reducing their risk level. After all, the market could drop right before you withdraw your money. And then what will you do!?
That’s why it’s important to review your portfolio regularly. If you haven’t been doing this consistently then the closer you get to retirement, the more important is to take this step now. Make sure a large portion of your 401(k) is allocated to safe investments, like money market funds and bonds.