What should I invest in?
- When do I need to start investing for my retirement?
- How much money do I need to invest for retirement?
- Where should I put my retirement money?
- What should I invest in?
- Stocks? Bonds? What's the right mix?
- Should my asset allocation change as I get older?
- What's the best asset allocation for my age?
- How much should I save if I want to retire early?
- How often should I check on my retirement investments?
Good question. And though zillions of books have been written about this, the basics are hardly rocket science.
There are three main kinds of investments, or "asset classes": stocks, bonds and cash. Your retirement accounts should probably contain a mix of stocks and bonds - and maybe cash too.
You can invest in stocks and bonds in one of two ways: by buying them individually or by buying them via a mutual fund. A mutual fund is simply a collection of stocks, or bonds, or cash equivalents - or sometimes a mix of all three.
Some people also invest in "hard assets" like real estate or gold, but those aren't always great choices for the average person's retirement account.
