A retirement mutual fund helps you plan for your lifestyle after you stop earning a regular income.
Retirement mutual funds allocate investments to both stocks and bonds, gradually shifting towards lower-risk options as retirement approaches. They offer regular income for retirees and have no exit fees with low expense ratios. However, they come with a lock-in period that can last up to five years or until retirement.
Characteristics of Retirement Mutual Funds
Retirement Mutual Funds are made for the long haul, matching your retirement plans. These funds usually need you to keep your money invested for around 5 years or more. This helps stop you from taking out your money too soon and keeps it ready for your retirement.
Retirement funds spread your money across different assets like stocks, bonds, and sometimes real estate