Now you have determined your are eligible for a rollover and you have decided to roll to a traditional IRA or a Roth IRA, where can you invest your funds Most people would prefer a no load mutual fund or an annuity, so lets review each. Mutual Funds Mutual funds provide diversification because you invest in a portfolio of hundreds of stocks or bonds verses just one or two individual stocks or bonds.
Mutual funds focus their portfolio on goals such as growth or income, domestic or international.
Investors can diversify their programs even further by choosing several mutual funds with different goals at the same time. Indexed Annuities are the newest form of an annuity. They are a mix between fixed and variable annuities.