How Are Contributions Invested in Retirement Plans?
The way contributions are invested depends upon the plan, and how it is administered. With an employer-sponsored plan, you may have a choice of investments within a defined pool. For self-directed retirement plans, many investment options are available. These include:- Mutual funds- Stocks- Bonds- Regular savings accounts or certificates of deposit (CDs)- Money market accounts- Insurance annuities A number of factors will influence your choose of investments.