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How should I invest the money?

Just as with an IRA, you can hold stocks, bonds, mutual funds and certificates of deposit in a Keogh plan.

When investing for a long-term goal such as retirement, you typically want to emphasize stocks, which have the best chance to generate returns that outpace inflation. Adding some bonds or cash to your mix can help reduce the overall volatility. See the Investing section for more on investing strategies. You can also use the Asset Allocator to determine the best mix of stocks, bonds and cash for your retirement money.