Investment or Saving Choices

Last updated: April 9, 2016

Stocks, Bonds, and Cash

Your investment or saving choices fall into three broad categories: stocks, bonds, and cash.

  • You can buy individual stocks or bonds through a broker


  • Gain instant diversification and professional management by selecting mutual funds that invest in stocks or bonds or some combination of the two.

  • Cash generally refers to savings accounts, money-market funds and other low- or no-risk, easy-to-access savings.

If you’re investing through your employer’s retirement plan, you’ll likely be offered a menu of mutual funds or an all-in-one target-date fund.

  • Target-date funds combine a diversified portfolio of mutual funds that grows more conservative as you near your retirement date.

There are also Exchange-Traded Funds (EFTs) that can work for individuals taking care of their own investment portfolio.

IRA owners, who can set up an account with a traditional or online broker, mutual fund, bank or other third-party administrator, can choose from almost any kind of investments or cash accounts.

Here are some possible guidelines for navigating your investment and your retirement portfolio.

*The information on this page is credited to IPT and Kiplinger. Their original materials are made available by the Kansas Securities here.