Personal Finance For Dummies (9th Edition) by Eric Tyson
Author:Eric Tyson
Language: eng
Format: epub
ISBN: 9781119517887
Publisher: Wiley
Published: 2018-11-06T00:00:00+00:00
Balanced/target-date mutual funds
Balanced mutual funds invest primarily in a mixture of stocks and bonds. This one-stop-shopping concept makes investing easier and smoothes out fluctuations in the value of your investments — funds investing exclusively in stocks or in bonds make for a rougher ride. These funds are solid options and, in fact, can be used for a significant portion of your retirement plan contributions. See Chapter 10 to find out more about balanced funds.
Some fund companies offer funds of funds known as a target date fund. These funds include a mixture of stocks and bonds; the mix gets gradually more conservative (less risky) over the years as a person nears retirement.
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