If you’re investing in an Individual Retirement Account, or considering opening one up, you may be wondering how you will invest the money you have in the account.
It’s okay if you’re not an experienced investor and don’t have hours to spend building an investment strategy. Consider investing in a lifecycle fund, sometimes also called a target-date fund. These funds will divide your savings among a mix of stocks and bonds that’s appropriate for your age. Over time, the mix of investments typically shifts to become more conservative as you move closer to retirement.
So, saving for retirement through an IRA can be as easy as picking the lifecycle fund that’s appropriate for your age, and letting the mutual fund company running the fund build a diversified portfolio to build your retirement savings over the years. For example, if you’re 25 today and expect to retire in your 60s, you can choose a fund targeted at investors retiring in 2055.
By investing in a lifecycle fund, you can also help avoid a common pitfall for younger investors, which is not taking enough risk with your money. If you avoid investing in stocks because you hate to see your investments rise and fall in value, you risk reaching retirement age with too little saved. It’s important to remember that if you’re 25 years old today, you likely won’t be retiring for 40 years or more.
TIAA-CREF Individual & Institutional Services, LLC, Teachers Personal Investors Services, Inc., and Nuveen Securities, LLC, Members FINRA and SIPC, distribute securities products.
Please note: the target date for LifeCycle funds is the approximate date when investors plan to start withdrawing their money. The principal value of the fund(s) is not guaranteed at any time, including at the target date.
You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877-518-9161or log on to www.tiaa-cref.org for product and fund prospectuses that contain this and other information. Please read the prospectuses carefully before investing.
There are benefits to an IRA rollover.