What are some good choices for IRA funds?


Quick Answer

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.

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Full Answer

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.

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