Retirement investing requires careful risk management because active withdrawals make portfolio downturns more damaging. Younger investors in their 30s and 40s can tolerate greater volatility, and investors in their 50s may retain some risk if retirement is planned for the 60s. Once retired, comfortable asset allocation and lower portfolio risk become essential. The Vanguard S&P 500 ETF (VOO) tracks the S&P 500, offers broad diversification across 500 large U.S. companies, and carries a low expense ratio. The Vanguard S&P 500 Growth ETF (VOOG) targets faster-growing S&P 500 companies and may deliver higher returns alongside increased volatility and concentration risk. Financial-advisor matching tools can help tailor allocation decisions.
Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don't waste another minute; learn more here.(Sponsor) Retirees are often advised to limit risk in their portfolios. And there's a good reason for that.
It's one thing to be invested heavily in riskier assets when you're in the process of building wealth for retirement. In your 30s and 40s, for example, you have plenty of time to ride out stock market downturns and come out ahead. You even have some leeway to take on a fair amount of portfolio risk in your 50s, assuming you're retiring at a traditional age (somewhere in your 60s).
The Vanguard S&P 500 ETF (VOO) aims to match the performance of the S&P 500 index itself. And that index consists of the 500 largest publicly traded U.S. stocks. VOO has a low expense ratio and offers the benefit of broad diversification. After all, you're effectively investing your money in 500 different companies.
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