Investment Strategies for Maximizing Your 401(k) at Age 40

Investment Strategies for Maximizing Your 401(k) at Age 40

If you're 40 years old, you're perhaps entering a happy, prosperous stage of your career and your life as an investor. Being 40 is a sweet spot where you have the potential to make more and invest aggressively due to future earning years ahead.

Key Strategies:

• Target Date Funds: Optimal blend of investments based on age and retirement horizon.
• Stock Investments: Consider 90% stocks for long-term growth.
• 60/40 Portfolio: Balance risk with 60% stocks and 40% bonds.

Choosing the right asset allocation at 40 involves evaluating risk tolerance and long-term objectives. Take advantage of your earning potential and invest wisely for a secure financial future.