Ok, so for the first time in our lives (I’m 56), I am going to start taking advantage of the ROTH IRA through my work (1/2 matching up to 6%). I know, I know…I should’ve been doing it long ago. In my defense, I have two pensions (military and teaching), and now is really the first time we have beaten down our debt and have enough of a cushion that I feel comfortable with investing…but really, that’s just an excuse.
AT ANY RATE, now that I have that opportunity, I’m looking at different investment types, and my (small amount of) research into them has only yielded confusion for me. Would some of you find folks please break these down for me “like I’m a 5-year-old”:
Index Funds – ok, I think I at least understand that these are reasonably safe, low-earning accounts. Is that accurate?
Target Retirement Funds (State Street Target Retirement 2025 Fund and also 2030 Fund)
Stable Value Fund
Active Bond Funds – so I have a fair handle on the bond types (thanks to this subreddit)…is this just diversified between the different types of bonds?
Active US Stock Funds (specifically T. Row Price Large Cap Growth Trust)
Active International Stock Funds (specifically BlackRock International)
My primary interest at the moment is in how risk-reward they are (i.e. high risk, high reward, etc…), but I also would like just to have more of an understanding of them as well.
Any help would be greatly appreciated.