There are many ways to invest the money in your IRA. If you want to be conservative, your best bet is a bank certificate of deposit, or T-bills even. These do not pay high rates of return, but they are guaranteed by the US Government and it doesn’t get any more secure than that. But, if you want to see higher yields on your investments, maybe you’d like to invest your IRA in mutual funds.
Investing your IRA in mutual funds
You could always invest in an index-fund, or even choose the stocks yourself, but why take chances when there are so many good mutual funds already out there? A good mutual fund is invested in high-growth stocks for high yields, as well as an assortment of bonds for diversity and security. If you’re going to go with a mutual fund, go with the best and let the professionals make the call.
The best in mutual funds
- Vanguard Total Bond Market Index Fund (VBMFX) – Vanguard is one of the oldest and most trusted names in the business. With a well-diversified portfolio, Vanguard has a proven track record investing in agency and corporate bonds.
- Third Avenue Value (TAVFX) – Third Avenue has a long track record of 10% average returns over the years. When investing in the markets, you must be prepared to stay in for the long term. Since 1926, the stock market has averaged 10% gains.
- Dodge And Cox Stock (DODGX) – Dodge And Cox has been around ever since 1965, investing conservatively with a traditional value approach. Dodge And Cox focuses on dividend-oriented investments that produce substantial rates of return with security, Dodge And Cox has regularly produced dividends of up to 20%.
Again, if you want higher returns on your IRA, mutual funds are the way to go. Put your trust in the seasoned professionals.