The best investments for individual retirement accounts are taxable bonds and taxable bond funds, according to CNN Money. Treasury inflation-protected securities and actively traded stocks are also good options to invest in a retirement account.
Taxable bonds and taxable bond funds are taxed less when held in a retirement account, explains CNN Money. Treasury inflation-protected securities have annual inflation adjustments. Outside of a retirement fund, these adjustments are taxed annually as interest income. Actively traded stocks can yield short-term gains, which are more heavily taxed than long-term gains.
Investors should compare fees and invest with firms that offer no-load funds, such as Fidelity, T. Rowe Price and Vanguard, states CNN Money.