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401(k) investments to maximize your portfolio


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Published in Stocks and Investing on Tuesday, March 25th 2025 at 13:41 GMT by AOL   Print publication without navigation

  • A 401 (k) plan will typically offer a range of investments, maybe even a few dozen mutual funds. Some 401 (k) plans may also allow you to buy individual stocks, bonds or ETFs. These plans give you the option of managing the portfolio yourself
  • an option that may be valuable to advanced investors who have a good understanding of the market.

The article from AOL Finance discusses strategies for maximizing a 401(k) portfolio. It emphasizes the importance of diversification, suggesting that investors should not put all their funds into one type of investment but spread them across various asset classes like stocks, bonds, and possibly real estate or commodities. The piece highlights the benefits of target-date funds, which automatically adjust the asset mix as one approaches retirement, reducing risk over time. It also advises on the significance of understanding one's risk tolerance and investment horizon, recommending a shift towards more conservative investments as retirement nears. Additionally, the article touches on the advantages of low-cost index funds for their broad market exposure and lower fees, and it encourages investors to regularly review and rebalance their portfolios to align with their retirement goals. Lastly, it stresses the importance of maximizing employer match contributions to ensure you're not leaving free money on the table.

Read the Full AOL Article at:
[ https://www.aol.com/finance/401-k-investments-maximize-portfolio-003250352.html ]

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