Final answer:
For low-risk retirement savings with interest, consider investing in mutual funds and transitioning to bond funds closer to retirement while weighing tradeoffs between risk and return.
Explanation:
Mutual funds can be a suitable option for Uma to invest her money in a low-risk place while earning interest for her retirement. Mutual funds are diversified with assets like stocks and bonds, managed by professionals, offering a balance of risk and return.
As retirement approaches, transitioning a portion of savings into a bond fund can provide stability and protect against market downturns. This strategy helps maintain returns while safeguarding funds for retirement expenses.
Considering the tradeoffs between risk and return is crucial for individuals when deciding where to invest based on their life stage and financial goals.
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