If you are using mutual funds indicate if you are going to use target date funds, balanced funds or a portfolio of individual funds and why you made that selection.

The instructions indicate that the project is focused on retirement investments and you will be required to make your investment decisions like you would when you start your new job. The list includes four mutual funds (Fidelity Vanguard TIAA-CREF, TIAA CREF, T. Rowe Price), and you are given instructions to find and use one.

Fidelity will be my first choice. The website is easy to use and offers many investment options.

The next step is to choose a Roth IRA. This decision was made because my retirement income is higher and I want the freedom to take my contributions without tax.

Also, I plan to use index funds (passive) Because index funds have higher long-term performance and lower fees than active funds, I chose this option.

Exchange-traded funds are what I plan to use because they offer liquidity and flexibility, and can be traded like stocks.

For the selection of funds, I’ll use a mix of individual funds. Research has shown me that diversifying across different sectoral funds will reduce the risk. I chose funds with low expense ratios and good track records.

If I work at 25 and retire at 65, then I’ll save $500 each month. If I take a 3% rate of return, my retirement account will be $375,000

This allows me to withdraw $1.500 every month until retirement.

My understanding of available investment options and my ability to accept risk were the key factors in my decision-making process. The portfolio I’ve chosen of ETFs and individual funds will allow me to reach my retirement goals cost-effectively and in a diversified manner.