Planning for retirement can be tricky! This article talks about how a person nearing retirement age can make the most of their savings.
It looks at different ways to grow money before retirement, like investing in bonds (safe but slow growth) or stocks (riskier but potentially faster growth). It also suggests a mix of both.
It emphasizes the importance of considering your own comfort level with risk.
- Investing in bonds is safer but offers lower returns.
- Investing in stocks offers higher potential returns, but also more risk.
- A mix of stocks and bonds balances risk and potential return.
| Investment | Potential Return in 5 years |
|---|---|
| Bonds | $328,291 |
| Stocks (S&P 500) | $402,628 |
| 60/40 Portfolio (Stocks/Bonds) | $380,615 |
