I'm 24 years old and planning to start investing in mutual funds for my retirement, but I don't know how to get started. Congratulations on your foresight. By starting to save at age 24, you should have plenty of time to build a sizable retirement fund. Historically speaking, stocks have outperformed all other categories of investments.
Investors generally buy bond funds to take some of the risk out of their portfolios.
Bonds offer more stable returns, but those returns tend to be lower than stocks, although you wouldn't know it from recent stock market results. Yes, the stock market has taken a hit in recent months, but things will eventually turn around. In the interim, think of today's down market as an opportunity to buy at a discount. When stocks begin their rebound, you'll have more fund shares in your account to benefit from the gains. Also consider some of the tax advantages out there for retirement savers.