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Investing Your 401(K) Money

April 3rd, 2007 at 10:26 am


Notes from Suze Orman's Women & Money book:

- if you have at least 10 years until you retire, your money belongs in individual stocks or stock mutual funds. These give you the best chance to earn more than the rate of inflation. The historical average annual rate for stocks is more than 10%. Bonds average less than half of that and savings accounts even less.

- if you want a maintenance-free plan choose a lifecycle fund. Choose a fund that has a retirement year in the name that is close to when you plan to retire. The fund will automatically hold and adjust to the right types of investments based on the number of years until retirement.

- if you want a more "hands-on" involvement go for index funds. These types of funds strive to follow the performance of popular market benchmarks such as Standard & Poor's 500.

1 Responses to “Investing Your 401(K) Money”

  1. Nic Says:
    1175596341

    I love your Women and Money "series". Thanks!

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