Question

(Planning for Retirement LC)

An employee is 38 years old and has had a retirement account for 13 years, with about 29 years to go before retirement. Which breakdown of investments would a financial advisor most likely suggest for the employee at this point in time?

0% high-risk; 10% medium-risk; 90% low-risk
10% high-risk; 20% medium-risk; 70% low-risk
30% high-risk; 45% medium-risk; 25% low-risk
70% high-risk; 25% medium risk; 5% low-risk

Answer 1

Alright so, with 29 years left until retirement, the employee has more time to ride out any short-term fluctuations in the market. This means, the option (c) 30% high-risk; 45% medium-risk; 25% low-risk would be the most suitable investment breakdown for this employee.

Answer 2

:)