Saving for Retirement

One of the most effective ways to decide between the many retirement investment choices that are available is to determine what type of investment mix is suitable for you.

Here are the most common types of investments:

Money Market
Virtually zero risk investment, but return on investment will also be the lowest.

Bonds
Debt that pays interest, typically higher risk than money market but with slightly higher returns.

Stocks
Buy buying stock, you are taking a small ownership position in a corporation. Although stocks come with a higher risk than other types of investments for retirement, there are often higher returns which can be yielded, as well as an increase in the versatility when it comes to reaping the benefits of the investment.

Mutual Funds
A mutual fund is a managed investment vehicle that you can buy that has investments in stocks and/or bonds.

ETF
An ETF is an Exchange Traded Fund. It trades like a stock, but typically tracks specific market indexes.

Retirement Vehicles
IRAs and 401ks are commonly used when saving for retirement due to the tax-benefits offered when using them. Depending on the type of 401k/IRA that you use, you'll either have an upfront tax deduction or not be taxed when you begin to withdraw funds. Inside of your retirement accounts, you'll typically have an option to invest in money market, bonds, and stocks.

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