Recommend this page to a friend. Our panel of experts answers your mutual fund questions. Over time, you might make a small fortune. Gio Mallard did it. And so did Knute Iwaszko.
Stocks outperform bonds and cash investments over time.
Again, if you have a long time frame, go with slightly more risky investments, such as technology, electronics, or speciality stocks. Funds with low turnover, such as index funds, can safely be kept outside the retirement plan. Older investors near retirement might consider shifting to bond funds, and guaranteed investment contracts that give them a set rate of return. Bonds have less risk than stocks and tend to preserve capital. Then, when you can join, increase the initial investment amount by as much as you can afford, and use what you have saved to live on.