Investment Strategies for 30-Year-Olds: How to Allocate Your 401(k) Money

Investment Strategies for 30-Year-Olds

As a 30-year-old investor, deciding on asset allocation is crucial for maximizing your 401(k) returns.

1. Use a target date retirement fund

• Benefit: Diversification and hands-off approach
• Example: Fidelity 2060 Freedom Fund

2. Invest mostly in stocks

• Rationale: Long-term growth potential for young investors
• Tip: Consider a percentage in stocks equal to 100 minus your age

3. Invest in a 60/40 portfolio

• Strategy: Balanced approach with lower risk
• Caution: Bonds are not risk-free

Remember, the key is consistent saving and employer match to secure your financial future.