What You Can Invest In

Stocks represent ownership in individual companies. When you buy a stock, you become a shareholder and participate in the company's gains and losses. Stocks can offer high returns over the long term but also come with higher risk.

Exchange-Traded Funds (ETFs) are collections of stocks, bonds, or other assets bundled together and traded on exchanges like individual stocks. ETFs offer diversification and usually have lower fees than mutual funds.

Bonds are loans you make to governments or companies. In return, you receive regular interest payments and the return of your principal at maturity. Bonds are generally considered less risky than stocks, but they also tend to offer lower returns.

Mutual Funds pool money from many investors to buy a diversified portfolio of stocks, bonds, or other securities. They are managed by professionals and can be actively or passively managed.

Target-Date Funds are mutual funds designed for retirement. They automatically adjust the mix of stocks, bonds, and other investments based on your expected retirement year, becoming more conservative as you approach that date.

You should choose your investments based on the type of retirement account you have, your personal goals, and your comfort with risk. For example, if you are many years away from retirement and have a high risk tolerance, you might allocate more to stocks or stock-based ETFs to maximize growth. If you are closer to retirement or want more stability, you may prefer bonds or target-date funds that automatically become more conservative over time. Always consider your time horizon, risk tolerance, and the unique features of your account—such as contribution limits or tax treatment—when building your portfolio. The right mix of investments will help you balance growth with protection, supporting your long-term retirement goals.