Why S&P 500 Index Funds Are a Great Retirement Investing Strategy
Once you retire, you shouldn't just take all the money you have in savings and keep it in cash. Sure, doing so will protect you from losses, but it will also meanlosing out on substantial growth -- growth you'll need to keep up with inflation. Rather, you'll want to keep your money invested, and while bonds are a safe bet for retirees, stocks are important, too, since they typically generate much higher returns.
But if the idea of buying and holding individual stocks throughout retirement seems overwhelming, there may be a better solution for you: index funds. Index funds are set up to match the performance of existing indexes. And S&P 500 index funds track -- wait for it -- the S&P 500 to emulate its performance.
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Source Fool.com
