People invest for a variety of reasons; some want rapid growth and, are willing to take on considerable risk to achieve this; others need stable growth, and the security that their funds will be there when they are needed. In terms of retirement investing, safety is a priority that cannot be overlooked.
Investors who set aside funds to plan for their retirement value stability in their investment choices. A stable investment provides income, as well as a sense of security. In order for an investment to be considered stable enough to count on in retirement, that investment should be shielded from the extreme fluctuations in value that other investments face.
Of all the investments to make, the category of investing that is considered to be the safest is known as cash investing. This kind of investment can include simple bank accounts, money market accounts and certificates of deposit (CD) accounts. While these types of accounts are relatively safe, they do not provide the high returns that other types of investments have to offer.
Retirement investments that are still considered to be safe choices, although slightly less so than cash investments, include corporate and government bonds. Investing in these kinds of bonds delivers steady dividends over the life of the investment. This type of fixed income investment is backed by the full faith and credit of the government or business that issues the bond.