In mutual funds, there is no single option to invest. Based on the needs of the person, one can invest. This includes income need, an alternate source of income, life expectancy, risk tolerance etc. It is also important that retirees are careful where they invest as the investment is for their future.

The thumb rule of investment is the 4% rule of investment. This means retirement income fund must provide you at least 4% return after taking into consideration the average rate of returns and inflation.

Another investment opportunity is investing in Balanced funds. These are asset allocation or hybrid funds. The money is distributed conservatively among, bond, stocks and money market. You can either go with medium-risk or high-risk depending on your needs.

The next option available for retirement is Fixed Income Funds. These are low-risk funds with portfolios of investor spread out in low-risk funds for generating fixed income. The investor looks for interest payouts as a way for income generation. This retirement fixed in funds include bond mutual funds, money market funds.

It is important for people to building their portfolios when it comes to mutual funds. The portfolio must contain a smart mix of diverse mutual funds which meets your objective of investing e.g. using retirement funds to start a business. The high-income retirement funds and the best retirement income funds use the Core and Satellite strategy of investing. The core represents the larger portion of the portfolio like 30-40% where satellites are smaller portions like 10-15%.

It is important to choose your income retirement account(IRA). You can either choose Roth IRA for high tax bracket or traditional IRA for low tax bracket.