Holicent
VIP Contributor
You’ve likely heard a lot about retirement accounts — but you may not know that all of them have unique features. Here are three things you didn’t know about these accounts.
They offer different investment options
Most retirement accounts offer the same types of investments: stocks, bonds and mutual funds. But there are some differences in how they choose those investments, so it’s important to understand what each one offers.
For instance, the 401(k) plan you work for might have a target date fund (TDF), which is an investment that automatically adjusts to your risk tolerance over time as you age and your financial situation changes. This can help keep up with inflation while still providing growth over time.
You can opt out of certain investments
Some brokerages offer a “no-load” option where they don’t charge commissions on buying or selling mutual funds or ETFs (exchange-traded funds) within their retirement account. This can save money because you won't be paying extra fees for something you may not need or want at all times.
They offer different investment options
Most retirement accounts offer the same types of investments: stocks, bonds and mutual funds. But there are some differences in how they choose those investments, so it’s important to understand what each one offers.
For instance, the 401(k) plan you work for might have a target date fund (TDF), which is an investment that automatically adjusts to your risk tolerance over time as you age and your financial situation changes. This can help keep up with inflation while still providing growth over time.
You can opt out of certain investments
Some brokerages offer a “no-load” option where they don’t charge commissions on buying or selling mutual funds or ETFs (exchange-traded funds) within their retirement account. This can save money because you won't be paying extra fees for something you may not need or want at all times.
