Maximize Your Retirement Investments Page: 6
20 p.View a full description of this pamphlet.
Extracted Text
The following text was automatically extracted from the image on this page using optical character recognition software:
Bonds add safety but reduce your overall return
6%, your bond would be worth about $833. But if you
held the bond to maturity, such price swings wouldn't
matter. You'd still earn 5% annually and you would
receive the full value of the bond when it comes due.
Over the long term, the performance of both corpo-
rate and government bonds has lagged the stock
market. But if stocks are too unsettling for you, or if
you have fewer than ten years until retirement, you
may want to add modest amounts of bonds or
other fixed-income vehicles to reduce the overall risk
level of your portfolio. (Your employer-based retire-
ment plan may offer a stable-value investment
option, which acts like a bond but includes insurance
to provide a guaranteed rate of return.)
Although investing a portion of your assets in bonds
may reduce your overall rate of return, the additional
diversification and safety will make for a smoother
ride toward retirement.
Mutual funds. Mutual funds offer a combination of
services that are ideal for retirement investors. They
are especially well-suited for beginning investors who
worry about their ability to select appropriate stocks
or bonds and who could benefit most from this brand
of professional management. But even experienced
investors and those with large portfolios can benefit
from what mutual funds have to offer: instant diversi-
fication, automatic reinvestment of earnings and
easy-to-monitor performance.A mutual fund pools money from many investors
and buys a portfolio of stocks, bonds or a mix of both
designed to achieve a specific investment goal. The
fund might own a selection of well-established blue-
chip stocks, small-company stocks, foreign stocks,
stocks and bonds, or a host of other investment types
or combinations. Each fund's goals and other detailsare spelled out in its prospectus-a helpful document
you should read before investing.
The categories used to describe mutual funds do a
pretty good job of indicating the kinds of investments
the funds make. To find the right funds for your retire-
ment portfolio, concentrate on the fund types whose
objectives and willingness to take risk match yours.
For example, aggressive-growth funds take the biggest
risk by purchasing shares of fast-growing companies,
trading rapidly or engaging in other risky strategies; in-
ternational funds invest in shares of companies based
outside the U.S.; and balanced funds balance their
portfolios between stocks and bonds.
Because the rate of return on your money needs toU
MAXIMIZE YOUR RETIREMENT INVESTMENTS
Upcoming Pages
Here’s what’s next.
Search Inside
This pamphlet can be searched. Note: Results may vary based on the legibility of text within the document.
Tools / Downloads
Get a copy of this page or view the extracted text.
Citing and Sharing
Basic information for referencing this web page. We also provide extended guidance on usage rights, references, copying or embedding.
Reference the current page of this Pamphlet.
Kiplinger's Personal Finance. Maximize Your Retirement Investments, pamphlet, 2010; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth639278/m1/8/: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.