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Your Investment Strategy

Now it is the time to determine your personal investment strategy. To determine your strategy you will have to consider:

Financial goals: How much money will you need to retire?
Time Horizon: How much time do you have until you need to use your money?
Risk: How much risk are you willing to take?
Return: How much return do you want?

Your plan offers professional money management.
Your plan offers a range of investment options that are managed by professional investment advisors (also known as "money managers"). The sole focus of these money managers is to select securities and invest your money according to specific guidelines and strategies. Money managers conduct economic research, evaluate financial data and use their professional experience to make these investment decisions. Mutual funds are also managed by professional investment advisors.

  • Find out the different investment goals of your plan options and see how they match your goals.
  • Look at what kinds of securities (stocks, bonds and others) make up each fund option.
  • Review the kind of companies in which the stocks are invested. Have you heard the company names before? In what industries do they do business? Are the companies large, medium or small? Are they growing rapidly?
  • Check the types of bonds in the bond fund. Are they corporate bonds, government bonds, mortgages or a combination? Are bond maturities short (3 years or less), intermediate (3-10 years), or long (10 years or more)? Are they high-quality or low-quality/higher yielding bonds?
  • Review the insurance companies and banks that provide stable income or investment contract fund options for your plan. Are you familiar with these insurance companies or banks? How are they rated by national credit rating agencies?

You'll become more comfortable with your investment alternatives when you understand them better.

Volatility  Investment Time Horizon