Everything You’ve Ever Wanted To Know About 401(k) Plans

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Your investing style should be based on your age

“Whether you’re too aggressive or too conservative has a lot to do with when you need the money. If you’re sixty-five years old, a sensible allocation between stocks and bonds is going to be different than if you’re twenty-five or thirty-five,” said Royal. “If you’re sixty-five and you need the money soon, you don’t want to rely much on stocks. You can have some stocks, but you don’t want to have as much as you would if you were younger. Stocks fluctuate a lot more whereas bonds are going to produce more steady income. There’s really not gonna be a lot of fluctuation over time so they’re going to be more steady cash generators.”

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