A group savings plan that has the exclusive purpose of providing a secure retirement income for those who leave the work force because of age. The ability to transfer accumulated benefits from one plan to another when a worker changes jobs. An Individual Retirement Account based on after-tax contributions. Earnings on contributions and distribution of funds are not taxed. The theory that says a combination of an individual's savings, Social Security and a private pension will provide secure retirement income.
D bonds are the least likely to be able to repay.
A Mutual Fund that invests in a mix of bonds, preferred stocks and common stocks with the three-part goal of conserving the investors initial principal, paying current income and achieving long term growth. This disciplines investors to buy more shares when prices are low and to buy fewer shares when prices are higher, thereby creating an average market cost over time. The central banking system of the U.S., supervised by the Federal Reserve Board, which determines the prime interest rate. Age is usually a primary factor in setting investment objectives. Such securities may include cash equivalents, such as bank CDs, Treasury Bills, etc.