Below are critical factors to watch. Age and time horizon . Age and the number of years until retirement are two key factors in your strategy decision. Consider reducing investment risk as you age. The opposite could be true if you're older and within five to 10 years of spending your savings.
Risk tolerance is the wild card here.
Your personal appetite for risk will shade how conservative or aggressive you are within your suggested range. The first goal of retirement investing is to work toward beating inflation. If your investments lag behind inflation, your savings' buying power will erode. An investor set on retiring at age 62 may need more savings than someone willing to work to age 67. Investors planning to receive their benefits through installment payments may want to consider some equity exposure even after retirement.