(d) Money Market Funds (MMF)
It is a form of mutual fund that deals in debt obligations. It is not a FDIC-insured account. These funds usually invest in U.S. Treasury funds, U.S. Government funds, general purpose corporate funds, & tax-free money market funds.
(e) Savings Accounts
It is deposit account that is usually opened at a bank or other financial institution with modest interest rate on deposited money. However, it may also have some restrictions on the number of transactions allowed per month.
(4) Direct Reinvestment Plans (DRIPs)
It is one of the best retirement investment options for a stronger retirement. Direct reinvestment plan (DRIP), also known as Dividend Reinvestment Plan (DRIP), is a plan that allows reinvestment of any cash dividend. These cash dividends are received through purchasing of additional stocks or fractional stocks on dividend payment date.
Several DRIPs allows investors to purchase additional stocks commission-free & even at a discounted rate of 1% to 10% as compared to prevailing stock price. However, you have to pay the taxes on cash dividend even though you have not received the cash in hands.
It is a best retirement investment options but the stock price may drop along with dividend payment to nullify your benefit from dividends.
Thus, you have to review & assess its performance from time-to-time to ensure that it is meeting your investment goals perfectly.
Image Source: Shutterstock