Nearly 38% of Baby Boomers Are Making This Alarming Retirement Plan Mistake
Saving for retirement is a good way to ensure that you're able to pay your living costs once you stop working. After all, Social Security will only replace about 40% of your preretirement paycheck if you're an average earner, and most seniors need roughly 70% to 80% of their former income to keep up with their expenses. In the absence of a robust pension, saving in an IRA or 401(k) is your next best bet. And the good thing about these accounts is that they allow you to invest your money for added growth.
But an alarming percentage of older workers might be investing their retirement savings too aggressively. A recent analysis from Fidelity found that almost 38% of baby boomers have a higher percentage of stocks in their portfolios than recommended. And 7% are 100% invested in stocks, which is a dangerous mistake that should be corrected.
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Source Fool.com
