Why Rising 401(k)s Are No Cause to Celebrate: Vanguard MSCI Emerging Markets ETF (VMO)

What to do now
In order to keep from falling behind, long-term retirement investors need to understand that it takes a combination of ambitious saving and what may feel like overly aggressive investment strategies in order to reach their financial goals. As difficult as it may be to set aside 8% of your salary, finding ways to boost that level to 10% or even 15% will leave you in much better shape to withstand the ups and downs of the market.

Meanwhile, with stocks near all-time highs and bond prices still holding up well, it may seem ill-advised to get more aggressive with your retirement portfolio. For those who have decades to go before they actually need their retirement money, though, adding to better-performing asset classes has a high probability of long-term success even if it brings more volatility along the way.

The article Why Rising 401(k)s Are No Cause to Celebrate originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger owns shares of Vanguard FTSE Emerging Markets ETF. You can follow him on Twitter @DanCaplinger. The Motley Fool has no position in any of the stocks mentioned.

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