How should my strategy change as I get older?

As you method retirement age, most specialists agree you need to steadily shift much more into bonds to shield the cash you have accumulated. But retirement can final a couple of decades, so it usually pays to preserve a wholesome dose of stocks nicely into retirement: possibly in between 40% and 50% whilst you are inside your 70s, and as much as 30% when you are inside your 80s.

If you would like to place your asset allocation on autopilot, think about "target-date retirement funds," that are accessible in numerous retirement plans. You merely select a fund that is labeled using the year you intend to retire, and it'll automatically adjust what it invests in (generally a mix of stocks, bonds and money) to maximize your return and reduce your danger as you get older.

For an concept of what the proper mix of stocks and bonds is for you personally, visit our asset allocation calculator.