Most 401(k) plans offer a variety of investments, including mutual funds, stock funds, and bond funds. Deciding which of these investments to put your money in takes research. You don’t have to put all your 401(k) money into one investment vehicle. Unless your research tells you otherwise, you should invest only a certain percentage of your money in a high-risk investment, such as stocks. Also note that most 401(k) plans offer mutual funds whose “risk” ranges from conservative to aggressive.
To determine what percentage of your money to invest in stocks, many financial advisors recommend that you subtract your age from 100. For example, if you’re 25, you should have 75% of your 401(k) money in stocks.
To determine what percentage of your money to invest in stocks, many financial advisors recommend that you subtract your age from 100. For example, if you’re 25, you should have 75% of your 401(k) money in stocks.
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