Investing in the S&P 500 for Retirement: Strategies by Age Group
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. With lifetime returns averaging 10%, low-cost index funds or exchange-traded funds (ETFs) that track the S&P 500 provide retirement-focused investors a solid opportunity for at least part of their portfolio.
Risk, timeline, and goals are the driving forces behind investor portfolios. The general rule is that investors take on less risk as they approach retirement. Younger investors, with time on their side, can generally take on more risk and have a larger portion of their portfolios allocated to stocks, like S&P 500…
