Question

an employee is 38 years old and has had a retirement account for 13 years, with about 29 years to go before retirement. which breakdown of investments would a financial advisor most likely suggest for the employee at this point in time? 0% high - risk; 10% medium - risk; 90% low - risk 10% high - risk; 20% medium - risk; 70% low - risk 30% high - risk; 45% medium - risk; 25% low - risk 70% high - risk; 25% medium risk; 5% low - risk

Explanation:

When planning retirement investments, a younger investor (with many years until retirement, like 29 years here) can afford more risk for potential higher returns. The employee is 38, so has time to recover from market fluctuations. A balanced approach with some high - risk (for growth), medium - risk, and less low - risk (which is more conservative) makes sense. The option with 30% high - risk, 45% medium - risk, and 25% low - risk allows for growth through higher - risk investments while still having a reasonable amount of medium and low - risk to balance. The first option is too conservative (too much low - risk, not enough growth potential). The second option is still relatively conservative. The last option is too risky (too much high - risk, which could lead to large losses that are hard to recover from with less time than a very young investor).

Answer:

30% high - risk; 45% medium - risk; 25% low - risk