Retirement funds include the option to have someone be in control of the fund, choosing investments and the amount for each investment. Retirement funds may also be in control of the individual that is investing. In either case, a retirement fund allows individuals to invest for their retirement, so that they can have an additional source of income.
There are a variety of types of
retirement funds. Some may include only long term investments, while
others include frequent trading of stocks. Each type of retirement fund
has risks, but some are much more risky than others.
When an individual selects a retirement fund administrator, they must be certain that they handle the type of investment requested. Some administrators may deal only in high risk investments, which can put the retirees future in jeopardy, while others only handle long term and low risk investments.
There are some retirement funds which are administered by employers. For example, a 401k can be considered a retirement fund, although the money can be used for other purposes such as education and the purchase of a first home.
401k plans may include a certain percentage of company stock, as well as other types of investments. Although the employer may administer the plan, employees can generally make selections as to the amount of risk and type of investment utilized for the plan.
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