Intro to Retirement
Investing Your Retirement Savings
You also said that different funds have different investment strategies. What does that mean?
Mutual funds are typically focused on stocks, bonds, or some combination of the two. Some mutual funds specialize in conservative investments, which typically means less risk and lower returns, while others pursue a more aggressive strategy, usually meaning more risk and potentially higher returns.
How is a pension different from other retirement-savings programs?
Your withdrawals are tax deductible
Your funds be withdrawn without penalty for a home purchase
The contributions come primarily from your employer
You have greater flexibility with your investments
What are the consequences for withdrawing money from a retirement account before you’ve reached retirement age?
You have to pay taxes on the money you withdraw
You have to pay both taxes and a 10 percent penalty on the money you withdraw
There are no financial consequences for early withdrawals as long as it’s for a good reason
You have to pay a 10 percent penalty on the money you withdraw