Individual Retirement Investment Options

When an individual is considering where to place their money in order to save up for retirement, they have several options to consider. The investment vehicle that they select will depend upon how aggressive they would like to earn dividends on their investment, and how much of a risk they would like to take on their principle investment.

Here is a listing of various individual investment options that an individual can consider for their retirement investment needs:

• Stocks: When an investor purchases stocks, they purchase ownership in a publicly traded company. Many individuals are attracted to this investment option because of the high earning potential that comes with stocks. However, along with high earning potential comes high risk. Stocks aren't FDIC protected financial products. An investor can lose their entire principle investment. Therefore, it's often recommended that investors shouldn't invest more money than they can afford to lose.


• Government Certificates Of Deposit: These are some of the most stable investment products for individuals. The investor purchases a government certificate of deposit, or a CD. Over a specified period of time, the CD matures. When the CD has matured, the investor is able to collect their initial investment, plus interest. CDs don't offer high rates of interest, but they are very secure investments.


• Annuities: Annuities are insurance products that are especially tailored for retirees. An individual will invest into an annuity while they are still able to work. When they retire, they will receive monthly payouts from their annuity. The investor can pre-determine how long they will receive a payout. They can designate a payout for months, years, or for the rest of their lives.


• Mutual Funds: A mutual fund is an investment product that is managed by a fund manager on the behalf of a collective of investors. The fund manager will select a portfolio of stocks, bonds, and other investment vehicles that the manager feels would be great investments, and would offer the highest returns. While many individual like mutual funds, they need to keep in mind that these products aren't FDIC insured. Therefore, the investor can lose their principle investment if the fund manager isn't careful.