Used Traditional Investment for Retirement Investing
Saving for retirement is the same as saving for other things. Here are some investment options to prepare for your retirement.
Stock
Stocks provide the highest growth potential of all Retirement Investments but also come with the highest risk potential. Investing requires more attention, so you need a lot of time if want to invest in stocks.
Bond
Although the profit rate is lower than stocks, but bonds have the advantage in terms of a small risk. Bond has been chosen people with a reason.
Mutual Funds
Mutual funds are the container and the pattern of fund management / capital for the group of investors to invest in investment instruments available in the market by buying mutual funds. These funds are then managed by the Investment Manager (MI) into the investment portfolio, whether it is stocks, bonds, money market or securities / other security.
As retirement investing, mutual funds can be a good way to diversity your portfolio without micromanagement that may be involved. Mutual fund allocation decisions must be made based on what types of stocks or bonds they invest in along with the type of asset allocation in the mutual fund itself.
Retirement Investment Retirement Account
When saving for retirement, you have several tools that are not available for other investment types. This Retirement Investing which was built specifically to support your retirement investment. The following is a brief overview of various types of retirement investment accounts available.
IRA
Individual Retirement Account (IRA) is similar to a 401k with tax deferral feature. He only has a $ 5,000 annual contribution limit and no opportunity for employer contributions. Once you have fully contributed 401k, you should put the remaining money into the IRA until the limit is reached.
Annuity
Retirement annuities offered by life insurance companies and have a very high cost of around 3% per year. This instrument should only be used for pension investment if the special features offered commensurate with the cost of 3%. This investment retirement rather is driven by financial salespeople because the commission is very high that they provide. Make sure you get information before diving headlong into something that could very well be a poor investment choice for your retirement.