Which of the following is intended primarily to enhance a person's?

Which of the following is intended primarily to enhance a person's tax advantage and retirement income?

A. U.S. Savings Bond
B. Growth fund

C. Money market fund

D. IRA

Nice. How many pages did they assign you to read in order to answer that question?

I'll expand just a little on what those are, since you don't care to read their extended definitions elsewhere:

A. A U.S. Savings Bond is a loan to the government. The yield is pretty small, but the return is pretty safe. It's considered a low-risk investment, so it's decent for keeping what you have.

B. Growth fund? I'm assuming you mean a mutual fund, in which a large number of people put their money so the fund manager can invest a huge sum. The term "growth" is applied when the intention is to buy stocks and then sell them quickly for high profits. That's what a lot of mutual funds do.

C. Money market fund most likely invests in the money market. That's where banks take your savings and trade dollars for other currencies. They can make a killing at it... but they pay you a paltry "guaranteed" sum.

D. IRA = Individual Retirement Account. An IRA allows an investor to invest in a wide variety of stocks, bonds, mutual funds, exchange-traded funds, tax lien certificates, and looey lamore. That would be the obvious answer... or would it?

Any of the above could be used to enhance one's retirement income, depending on your goals and your risk tolerance.

But on the test, mark D. And read the stinkin' book!

D IRA the others are storage of money not retirement at all. Only the growth fund could be used to make money at all the others are just storage hardly beating inflation

Roth IRA is the best. You end up paying a whole lot less taxes

A and C are very conservative investment vehicles for a retirement. You would barely keep up with inflation. If you have many years (>20) before retirement than invest in growth funds or growth stocks in an IRA.

If this is a question from some test, D is the answer.

Tags

　　Investment Account 　　Invest Money 　　Invest in Gold 　　Invest Fund 　　Income Fund 　　HYIP 　　High Yield 　　Hedge Fund

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