How to Pick 401(k) Investments: Allocation Guide
Build the right portfolio based on your age, risk tolerance, and timeline
Your 401(k) investment allocation is the single biggest factor in your long-term returns. Get the stock-to-bond ratio right for your age and risk tolerance, keep costs low, and rebalance regularly.
Age-Based Allocation Guidelines
A common starting point: subtract your age from 110 for your stock allocation percentage. At age 35, that means 75% stocks and 25% bonds. Adjust based on your risk tolerance and other income sources.