401(k) strategy by age
Experts compare 401(k) planning to a race: strategies should shift across your 20s, 40s, and 60s.
In your 20s, the biggest mistake is not enrolling; time and compounding can support higher-risk investing.
In your 30s, consider dialing back thematic risk, using index funds, and raising contributions as income grows.
In your 40s, shift toward balance: ~60% equities and ~40% bonds, diversify, watch fees, and max $24.5K in 2026.
In your 50s and 60s, use catch-up to reach $32K in 2026, then plan withdrawals, taxes, Social Security timing, and RMDs at 73.
Iām seeing retirement planning framed as a stage-by-stage process, where your investing mix, contribution habits, and later withdrawal decisions evolve with age, balancing growth early on with stability and tax planning closer to retirement.
Leave a Reply