Are 401(k) funds safe?

Lower-risk investments such as cash, CDs, money market funds, and bonds present far less risk of loss but also lower rates of return. If you overinvest your 401 (k) funds in safe investments like these, you risk missing out on the wealth-building returns of the stock market.

Which 401(k) fund should I invest in?

Bond funds, money market funds, index funds, stable value funds, and target-date funds are lower-risk options for your 401 (k). Each investment type has its own risk profile to consider. Bond funds are a type of pooled investment vehicle for debt securities. Bond funds typically focus on a particular type of bond, such as government bonds.

What is a lower risk 401(k)?

Lower-risk investment types can help maintain the value of your 401 (k), but it is important to consider that lower risk usually means lower returns . Bond funds, money market funds, index funds, stable value funds, and target-date funds are lower-risk options for your 401 (k). Each investment type has its own risk profile to consider.