John, 25, just started contributing to his employer's 401(k) plan and started an IRA account. He is choosing to invest only in bonds and secure investments instead of high-risk stocks. Is John pursuing a wise investment strategy?

Yes; retirement income should be protected from turmoil in the stock market.

Yes; as John gets closer to retirement, he can switch to higher-yielding stocks.

No; young investors can afford more risk since they have time to recover from any sudden loses.

No; bonds and safe investments are not part of good retirement plans.

Question

John, 25, just started contributing to his employer's 401(k) plan and started an IRA account. He is choosing to invest only in bonds and secure investments instead of high-risk stocks. Is John pursuing a wise investment strategy?

Yes; retirement income should be protected from turmoil in the stock market.

Yes; as John gets closer to retirement, he can switch to higher-yielding stocks.

No; young investors can afford more risk since they have time to recover from any sudden loses.

No; bonds and safe investments are not part of good retirement plans.

SmokeyBrown · Answer

In my opinion, the first answer seems to be the most correct. You don't necessarily need to make a lot of money investing with retirement funds; you just want to make sure you have enough money to live off of once you're too old to work.

Jbaena1 · Answer

Thanks for helping! I really really appreciate it!

SmokeyBrown · Answer

No problem. Thanks for using QuestionCove!