Well, this depends a lot on how much you have saved and how long you have until retirement
Budgeting For Retirement
The first thing you need to do is develop a budget for how much money you will need to live on during your retired life.
Next, determine how much of your guaranteed income, like Social Security and pensions, you can use to pay for your projected budget. You can estimate the size of your Social Security checks with our Social Security Calculator.
Now that you know the difference between what you will have and what you will need, it is time to decide how to invest your current retirement nest egg.
CDs and Money Market Funds
If you were a smart cookie and started your savings right out of high school, then a money market account or CD may be perfect for you. They are low risk, but they also have meager returns. The good news is, you have plenty of time before you retire to eke out the money you need for a healthy retirement.
But if you are like most Americans and got started with your savings plan late in life, you may need to consider taking a risk to get a retirement worth living.
Bonds and Stocks
Standard bonds are a little better than money market accounts and CDs in terms of returns but are less risky than playing the stock market. Despite the risks involved, stocks and bond funds are the most likely to give you the best return on your money.
The best thing to do is take into consideration how much money you currently have saved and how much more you need to save before you retire. Then decide how much of a risk you are willing to take to get the life you want.