Using Mutual Funds to Supplement Your Retirement

Mutual funds are a good choice when investing for goals other than retirement, however they can also be beneficial for use in retirement planning when you have maximized your contributions to both your retirement plan and your tax-deferred investments.

There is no early withdrawal penalty with mutual funds, which have the potential for growth while letting you redeem your shares upon request. Mutual fund investments may pay dividends or capital gains during the year and the sale of these investments is considered a taxable event. These earnings are subject to tax, so for the purposes of saving for retirement, college or other long-term goals, you may want to focus on accounts that offer tax deferral first.

As with any other type of account, when investing your mutual funds, portfolio advisors suggest changing your asset allocation — how you break down your investments among stocks, bonds, real estate and cash — depending on how soon you'll need access to your money. The TIAA-CREF family of funds includes a variety of choices in four asset classes, allowing you to allocate for goals with different time horizons.

Learn more about TIAA-CREF Mutual Funds.

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