401(k)s let you contribute part of each paycheck into a retirement account, where you can generally invest your assets in various types of mutual funds, such as index funds or target date funds. The ability to invest for retirement is a major incentive to use a 401(k)—investing your mo...
Yields in mutual funds vary, and to a certain respect depend on the investment objective of the fund. The vast majority of mutual funds aim to return investment yields significantly greater than those of CDs. The investment yields of 401k plans are dependent upon the chosen investment options in...
What is a prospectus and why is it important to mutual funds? Think of the prospectus as the owner’s manual of a single mutual fund. It tells you what it is,what its investment goals are, andhow it’s going to reach those goals, andhow much they will charge you to make you money...
In most organizations, 401(k) and other retirement plans are managed by ahuman resourcesdepartment as part of abenefits administration. Since the introduction of the 401(k) plan in 1978, it has become the most popular type of retirement fund account sponsored by employers in the United States...
Most of the money in 401(k)s is invested in mutual funds. You’re told that over the long term, you can do well in the stock market. But over thelast 20 years, the average equity mutual fund investor has earnedonly 4.25% per year, beating inflation byonly 2.1% per year, according...
Few investors have been more shaken by the rash of mutual fund scandals than the 47 million Americans saving for retirement in 401 (k) plans. One in every four dollars invested in mutual funds is held in a defined-contribution retirement plan. For most investors, those accounts make up ...
What is a mutual fund? A mutual fund is a company that pools money from many investors and invests the money in securities such as stocks, bonds, and short-term debt. The combined holdings of the mutual fund are known as its portfolio. Investors buy shares in mutual funds. Each share re...
If your employer doesn't offer a 401(k), you still can open atraditional or Roth IRAto save for retirement on your own. With either type of IRA, you can put your cash into a range of investments, such asindividual stocks,bonds,index funds,mutual fundsandCDs. And just like with a 40...
A Roth 401(k) is an employer-sponsored retirement savings account that is funded with after-tax money. As long as certain conditions are met, withdrawals in retirement are tax free.
A mutual fund fact sheet is a basic three-page document that gives an overview of a mutual fund. “It's a great starting point when you're evaluating an investment,” said Roger Whitney, a certified financial planner at WWK Wealth Advisors. Fund sheets differ a bit from fund to fund and...