When planning for retirement, it's important to understand the role of stocks, bonds, and mutual funds in building a well-rounded investment portfolio.

Stocks: Investing in stocks can provide long-term growth potential. Stocks represent ownership in a company, and their value can fluctuate based on the company's performance and market conditions. For example, investing in established companies like Apple or Microsoft can offer potential for capital appreciation over time.

Bonds: Bonds are debt securities issued by governments, municipalities, or corporations to raise capital. They are generally considered less risky than stocks and can provide a steady income stream through interest payments. For instance, investing in U.S. Treasury bonds can offer a low-risk option for generating income in retirement.

Mutual Funds: Mutual funds pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities. They offer professional management and diversification, making them a convenient option for retirement planning. For example, investing in a balanced mutual fund that holds a mix of stocks and bonds can provide a diversified approach to long-term investing.

It's important to note that each of these investment options carries its own level of risk and potential return. By diversifying across stocks, bonds, and mutual funds, investors can manage risk while aiming for long-term growth and income in retirement.

References:

1. Investor.gov - U.S. Securities and Exchange Commission. (n.d.). Introduction to Investing. https://www.investor.gov/introduction-investing
2. Investopedia. (n.d.). Stocks. https://www.investopedia.com/terms/s/stock.asp
3. Investopedia. (n.d.). Bonds. https://www.investopedia.com/terms/b/bond.asp
4. Investopedia. (n.d.). Mutual Funds. https://www.investopedia.com/terms/m/mutualfund.asp