Читать книгу Investing For Dummies - Eric Tyson - Страница 70

When you establish a retirement account, you may not realize that the retirement account is simply a shell or shield that keeps the federal, state, and local governments from taxing your investment earnings each year. You still must choose which investments you want to hold inside your retirement account shell.

You may invest money for your IRA or self-employed plan retirement account (for example, your SEP-IRA) in stocks, bonds, mutual funds, exchange-traded funds, and even bank accounts. Mutual funds (offered in most employer-based plans) and exchange-traded funds, which I cover in detail in Chapter 8, are an ideal choice because they offer diversification and professional management. After you decide which financial institution you want to invest through, simply obtain and complete the appropriate paperwork for establishing the specific type of account you want. (Go to the later section “Choosing the Right Investment Mix” for more information.)