As the markets rise and fall, your portfolio will gradually move away from its target allocation. This is important to note because, as an investor, your investments should be allocated according to your risk tolerance, time horizon, and personal goals.
Market volatility, like the roller coaster experienced last week, can test even the calmest of investors. Constructing and following a sound asset allocation strategy for your long-term retirement goals will provide peace of mind even during extreme market movements.
Although many firms offer TPA services to retirement plans, not all offer the same quality of services due to the nature of their business. One major example of this is payroll providers.
Contributing to your 401(k), deferring money from a paycheck to save for retirement, is a simple, convenient and important action we advise all employees to take advantage of at their workplace when offered.
Target Date funds have been growing in popularity for the last decade. Their rise in popularity can be attributed to a number of factors, however their “auto-pilot” or “hands-off” approach is what has led many investors to choose these funds for their retirement portfolios.
There is no magic number as to how much is “enough” to have saved for retirement. Each individual has different goals and different financial circumstances.