The stock market has been turbulent this year, and the S&P 500 is down nearly 20% from its peak in early January — closing in on bear market territory once again this year.
Many investors are also worried about a potential recession, adding to the stock market concerns. With all of this volatility, is it still safe to retire right now? Or should you hold off a few years? It depends on a few factors.
1. Is your asset allocation appropriate for your age?
Asset allocation refers to how your investments are divided up in your portfolio.
When you’re younger, it’s generally best to invest primarily in stocks, with little money allocated toward bonds and other conservative investments. While stocks are higher risk than bonds, they also see higher returns, on average. And if the stock…