We all want a thick nest egg for our retirement savings, although all individuals may have different approaches.
Where do you invest money for retirement savings? Some of us are comfortable taking chances in high-flying stocks while others prefer to stay in the safety of bonds and cash.
According to a recent survey where retirees talk about their investments, the following are the places where today's savers put their money to work.
The survey found that 16% of Americans use ETFs (exchange-traded funds) for their retirement savings. ETFs were launched in 1993 and have become increasingly popular in recent years.
21% of Americans said they chose annuities for their retirement savings. Although experts agree that annuities are undervalued, they should be a major part of retirement planning.
The old adage "cash is king" rings true with the 46% of Americans putting at least some of their retirement savings into the greenback.
But that doesn't mean that cash is a completely secure way to store your money. Inflation can reduce the value of cash over time.
47% of Americans chose individual securities for their retirement savings. Individual securities include stocks, bonds and options.
Millions of Americans rely on mutual funds to do a great job building a nest egg, and with good reason. That's why maximum 49% of people use mutual funds for retirement savings.
However, 27% of people used other methods for retirement savings. There are many ways you can save for retirement that go beyond buying stocks or stuffing cash into a bank account.
In today's technology era, some people have started investing in cryptocurrencies and NFTs in hopes of getting rich quickly.
How should you save for your retirement? You should not follow the crowd, but rather follow a way that suits your individual wants and needs.