N@N

Is your 401(k) portfolio too conservative? 3 ways to tell

The article from MSN Money discusses how to determine if your 401(k) portfolio might be too conservative, potentially jeopardizing your retirement goals. It outlines three key indicators: 1) Your Asset Allocation - If your investments are heavily skewed towards bonds and cash equivalents rather than stocks, especially if you're far from retirement, your portfolio might be too conservative. 2) Performance Comparison - If your portfolio's performance lags significantly behind market benchmarks like the S&P 500 over a long period, it might suggest an overly cautious investment strategy. 3) Risk Tolerance and Goals - If your risk tolerance and retirement goals are not aligned with your current investment strategy, particularly if you're not taking enough risk to meet your financial objectives, your portfolio could be too conservative. The article suggests that while being conservative can protect against market downturns, it might also mean missing out on potential growth necessary for a comfortable retirement.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/personalfinance/is-your-401-k-portfolio-too-conservative-3-ways-to-tell/ar-AA1yZoTy ]