| Our educational system fails to teach financial | | | | offered are mutual funds. |
| education and as a result millions of Americans fail | | | | Investing for retirement in an IRA has income tax |
| when dealing with financial matters. The recent | | | | advantages, and there are numerous ways to |
| collapse of real estate prices wiped out countless | | | | open and invest in these accounts. You can open |
| families who overextended themselves financially | | | | an IRA at your local bank, through a life insurance |
| and ended up with their homes in foreclosure and | | | | agent, or with a brokerage firm. Millions of |
| a low credit score. In terms of investing for | | | | Americans open an IRA with a mutual fund |
| retirement, the average investor scores poorly as | | | | company and make contributions on a regular |
| well. | | | | basis. Others roll over money from one or more |
| The level of your financial education in the area of | | | | company pension plans to a mutual fund IRA to |
| investing may very well determine the level of | | | | simplify and consolidate their retirement funds. |
| your financial security in retirement. In your | | | | Probably the biggest advantage to mutual fund |
| working years you will likely invest in a retirement | | | | investing is the broad array of investment options |
| plan at work and/or in an IRA. Once retired, you | | | | offered. In the world of investing there are |
| have hopefully accumulated a retirement nest egg | | | | basically three different asset classes or |
| that can provide you with future income and | | | | investment options, and mutual funds offer easy |
| financial security for life. All along the way financial | | | | access to all three. Stock or equity funds invest |
| education is important, because you will be making | | | | your money in stocks for long term growth and |
| investment decisions on an ongoing basis. | | | | potentially higher profits. Bond funds offer higher |
| Start your education in the investment area by | | | | interest income, and money market funds feature |
| focusing on mutual funds. These investment | | | | safety and pay competitive interest rates. |
| packages pool money from many investors and | | | | Few average investors have the time, |
| manage a portfolio of securities for their investors | | | | experience, or financial education required to |
| at a reasonable cost. Mutual funds are designed | | | | manage a portfolio of individual securities like |
| for the average or new investor and are | | | | stocks and bonds. Try investing for retirement or |
| extremely popular. In fact, if you have a typical | | | | in retirement with a team of professional |
| 401k or similar plan at work, you will notice at a | | | | investment managers on your side. Focus on |
| glance that most of the investment options | | | | mutual funds and learn all you can about them. |