401k Help: What if My Plan Doesn't Match My Risk Appetite?

When saving for retirement, there is a good chance that you will be looking for 401k help at some point. Many people are not sure if the investment plan that they have embarked upon matches their personal risk at that. Here are a few things to consider about matching your investment strategy with your appetite for risk.

Changing Course

The good thing about a 401k investment strategy is that it can always be changed. It is never too late to change your course in midstream. You simply have to sell some securities and buy new ones. This can easily be done with the help of your 401k provider.

Reallocating

If your current plan does not suit your appetite for risk, you will need to consider reallocating resources to other types of investments. For example, if you believe that you are taking too much risk with your retirement funds, you may want to lower the percentage of your account that is made up of stocks. You can then take that money and use it to purchase fixed income securities such as corporate bonds. If you believe that you are not taking enough risk, you may want to do the opposite. For example, you could sell your shares of mutual funds and use the money to purchase individual stocks.

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