Soft Rock Country Standards TALK Dr. Balanced or asset-allocation funds consist of various mixes of these investments in a set percentage. Understand your time horizon. If you're years from retirement, investing most of your money in stock funds makes sense. Understand your risk tolerance.
Stocks are more volatile than bonds, and bonds are more volatile than stable-value funds.
Volatility is what we mean by risk. If you have 10 years or longer before you retire, stock funds will reward you with higher returns even though your plan value may dip at times, so you should invest at least 80 percent of your plan in stock funds. All rights reserved.