Admit it. Most people want to know how rich people acquired their wealth. Were they hot-shot real estate tycoons, master investors or creators of wildly popular computer programs?

You may not be the next Donald Trump, Warren Buffett or Bill Gates, but you can amass considerable wealth by investing your money wisely in the retirement plans available to you.

That's why it's so important to know what opportunities exist for individuals. For example, target-date funds, which have hit the scene in recent years, are designed to make investing as simple as possible.

But other mutual and exchange-traded funds, stocks, bonds, certificates of deposit, Treasuries and the like are also among a rich arsenal of tools available to you as an investor. Bear in mind that investments have their own inherent perks and pitfalls.

Some may promise richer profits. Others come with less risk. That's why understanding how these investments function is such a vital step in crafting the best retirement plan possible. Put another way, you don't have to write a bestseller or pick stocks like a genius, but you do need to be knowledgeable.