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MAY 2021
Maximizing investments for your retirement
The length of time you have before retirement — your investment “time horizon’’ — is an important consideration when determining your asset allocation strategy, or the mix of stocks, bonds and money market/stable value investments you select.
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All of these investment vehicles are available in your Costco 401(k) retirement plan from T. Rowe Price, whether you choose to create your own portfolio or select a pre-assembled portfolio, such as a target date fund or asset allocation fund.
Your goals, financial circumstances and risk tolerance level may change as you go from entering the workforce to retirement and beyond.
Finding a balance, decade by decade
Your 20s and 30s: Now’s the time to start saving and investing through your workplace retirement plan. And the sooner you enroll and start saving, the better. Here’s why: When you invest through the plan, any earnings are put right back into your account. The longer your money stays invested, the more it can potentially earn through compounding.
Because retirement is several decades away, consider a higher allocation to stocks. Your investments should have time to ride out any ups and downs in the market.
Your 40s: Even if you’re just getting started, you still have 20 to 25 years to build up your savings. So make the most of these years.
Historically, stocks provide better long-term growth potential when compared with bonds and money market/stable value investments.
Your 50s and over: As retirement approaches, you may want to consider cutting down on stock allocations, which are more vulnerable to ups and downs in the market.
Before passing up too much growth potential, though, remember inflation and the power it could have to erode your money. Consider keeping a portion of your portfolio in stocks to help stay ahead of inflation over the 20 to 30 years you may need your nest egg to last.
Resources for you
To learn more about your Costco 401(k) retirement plan — and saving and investing for retirement — log in to your account at RPS.TRowePrice.com. Visit the “Investments” page to review the investment options offered with your plan, including access to investment performance and fund fact sheets.
To learn more about your Costco 1165(e) retirement plan — and saving and investing for retirement — log in to your account at RPS.TRowePrice.com. Visit the “Investments’’ page to review the investment options offered with your plan, including access to investment performance and fund fact sheets.
To learn more about your Costco 401(k) retirement plan — and saving and investing for retirement — log in to your account at RPS.TRowePrice.com. Visit the “Investments” page to review the investment options offered with your plan, including access to investment performance and fund fact sheets.