Your Guide to Retirement Funds
Retirement funds include the option to have someone be in control of the fund, choosing investments and the amount for each investment. Retirement funds may also be in control of the individual that is investing. In either case, a retirement fund allows individuals to invest for their retirement, so that they can have an additional source of income.
There are a variety of types of
retirement funds. Some may include only long term investments, while
others include frequent trading of stocks. Each type of retirement fund
has risks, but some are much more risky than others.
When
an individual selects a retirement fund administrator, they must be
certain that they handle the type of investment requested. Some
administrators may deal only in high risk investments, which can put
the retirees future in jeopardy, while others only handle long term and
low risk investments.
There are some retirement
funds which are administered by employers. For example, a 401k can be
considered a retirement fund, although the money can be used for other
purposes such as education and the purchase of a first home.
401k
plans may include a certain percentage of company stock, as well as
other types of investments. Although the employer may administer the
plan, employees can generally make selections as to the amount of risk
and type of investment utilized for the plan.
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