Employees contribute to the plan and all contributions and any earnings grow tax deferred until withdrawal. Employers may match a portion of employees' contributions. Aggressive Growth Funds Mutual funds that invest in companies with the potential for rapid growth, such as companies in developing industries, small but fast-moving companies, or companies that have fallen on hard times but appear due for a turnaround. A mutual fund management style in which the fund manager uses analytic or forecasting tools to buy and sell individual securities for the fund portfolio. Annuity A contract between an individual and an insurance company in which the individual pays money into an account in exchange for a guaranteed payment at or during retirement.
Annuities offer tax-deferred growth.
The way in which you weight investments in your portfolio to try to meet a specific objective. A sales fee charged when you sell or redeem shares of a mutual fund. Balanced Funds Mutual funds that combine stocks and bonds in a single portfolio. Benchmark A market index used by individual investors, portfolio managers, and market researchers to determine how a particular market or market sector performs. Beneficiary One who receives the proceeds of a trust, retirement plan, or life insurance policy.