Which breakdown of investments for retirement savings would a financial advisor most likely suggest for someone who is 35 years old?

Option A: 5% high-risk; 15% medium-risk; 80% low-risk
Option B: 10% high-risk; 80% medium-risk; 10% low-risk
Option C: 35% high-risk; 30% medium-risk; 35% low-risk
Option D: 50% high-risk; 5% medium-risk; 55% low-risk

I feel like I'm just being stupid but I have no idea how to answer this but I'm going to take a wild guess and say Option C?? I'm not quite sure how to answer this and I don't just want to base it off of a guess either.

Question

Which breakdown of investments for retirement savings would a financial advisor most likely suggest for someone who is 35 years old?

Option A: 5% high-risk; 15% medium-risk; 80% low-risk
Option B: 10% high-risk; 80% medium-risk; 10% low-risk
Option C: 35% high-risk; 30% medium-risk; 35% low-risk
Option D: 50% high-risk; 5% medium-risk; 55% low-risk

I feel like I'm just being stupid but I have no idea how to answer this but I'm going to take a wild guess and say Option C?? I'm not quite sure how to answer this and I don't just want to base it off of a guess either.

bigdaddydave · Answer

i was thinking c also

kittybasil · Answer

Hey! Let's not do direct answers on this site please, we still want people to learn from tutoring! Your contributions are appreciated nonetheless. ♪

bigdaddydave wrote:

i was thinking c also

kittybasil · Answer

According to a comment on Financial Samurai:

Quote:

I want to start off with high-risk high reward funds, seeing as I potentially have 30 to 40 years to invest.

Based on this, we can assume that the younger you are the easier it is to use high-risk savings as you've got time to salvage if you get the short end of the stick, so to speak. As time passes, it would be logical to decrease the risk of your investments because you have less and less time to recoup if your plans fall through, so you should be correct with choice C. Let me know if that helps! Cheers, • Kitt

redsky · Answer

My apologies! I'll make sure not to put answers down but yes, thank you very much for the help!

kittybasil · Answer

@redsky wrote:

My apologies! I'll make sure not to put answers down but yes, thank you very much for the help!

Oh no, you're fine! I didn't mean you, I meant the individual who answered before me with only the answer choice they thought was correct. There is no issue with your putting down answer choices, so there isn't anything to apologize for. Thank you regardless! And good luck on your studies ♪ if my response helped you with your homework, feel free to click "Best Response" on my comments to give a medal! 🏅 Cheers, Kitt