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401(k)s & IRAs For Dummies
book

401(k)s & IRAs For Dummies

by Ted Benna, Brenda Watson Newmann
October 2021
Beginner
352 pages
8h 40m
English
For Dummies
Content preview from 401(k)s & IRAs For Dummies

Chapter 13

Selecting Your Investments

IN THIS CHAPTER

Bullet Checking out your choices

Bullet Finding the right combination of investments

Bullet Keeping an eye on your pie

Bullet Knowing where to go for help

When you drive somewhere, what kind of ride do you like? A bumpy one that rises and dips like a rollercoaster, leaving you with a stomachache by the time you reach your destination? Or a smooth one that lets you arrive feeling rested and relaxed? Unless you truly enjoy discomfort, you probably prefer the smooth ride.

Investing for retirement is a lot like car rides. And I have news for you — diversifying your investments (choosing a range of different ones) puts you on a smoother investing path than not diversifying. How so? Different types of investments, such as stocks and bonds, tend to move up and down in value at different times. If you choose several investments, one may go down in value as another begins to go up, giving you a relatively even ride.

“Why not just put everything in the one investment that performs better than the others?” you ask. Great idea, in theory. But in practice, you can’t ...

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Publisher Resources

ISBN: 9781119817246Purchase Link