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Investing in the S&P 500 for Retirement: Strategies by Age Group


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Published in Stocks and Investing on by Investopedia   Print publication without navigation

Fact checked by Vikki Velasquez The S&P 500, also popularly called "the market," is a benchmark that tracks the performance of around 500 of the U.S.'s largest publicly traded companies. The S&P 500 is inherently well-diversified and highly efficient.

The article from MSN Money discusses strategies for investing in the S&P 500 for retirement, tailored to different age groups. For those in their 20s and 30s, the focus is on long-term growth, recommending a higher allocation to stocks, around 80-90%, due to their longer investment horizon. As individuals reach their 40s and 50s, the strategy shifts towards balancing growth with risk management, suggesting a 60-70% allocation to stocks and the rest in bonds. For those in their 60s and beyond, the emphasis is on capital preservation and income, with a recommended stock allocation of 40-50% to minimize risk while still allowing for some growth. The article stresses the importance of regular portfolio rebalancing and adjusting asset allocation as one ages to align with changing risk tolerance and financial goals.

Read the Full Investopedia Article at:
[ https://www.msn.com/en-us/money/top-stocks/investing-in-the-s-p-500-for-retirement-strategies-by-age-group/ar-AA1Fe5vC ]

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