Your Retirement Plan’s Investments – Keeping Focused on the Long-Term
When you participate in your retirement plan with Cone Health, you can choose from a variety of investment options based on your personal situation and how involved you’d like to be in managing your portfolio. Understanding your plan’s investments and creating a long-term strategy can help you achieve your desired future. Let’s review a few investing principles.
Asset classes and creating an investment strategy
The first concept to understand is how certain investments are categorized or classified. Asset classes are groupings of investments that have shared characteristics and follow similar regulations. A few examples include stocks, bonds and cash or cash equivalents.
Throughout history, the total annual returns for these different classes have either led or lagged. To help minimize your risk when investing it can be important to not solely rely on one type of asset class.
Asset allocation is a strategy that involves the selection of a variety of assets classes to create a balanced and diversified investment portfolio. Diversification, the process of helping reduce risk by investing in several different types of individual funds or securities, works hand-in-hand with asset allocation.
How your retirement plan fits in
The asset allocation that is right for you will also depend on factors like your timeline to retirement, personal goals and tolerance for risk.
For example, as you get closer to retirement, your focus will likely shift from growing your assets to maintaining your income throughout retirement. That’s why it can be especially important to review your investments with your financial professional as you get closer to your retirement age.
To help you create a balanced portfolio, Cone Health’s retirement plans offer a variety of mutual funds along with a fixed interest option that each invest in a different mix of asset classes depending on that fund’s specific objective and strategy.
You can actively manage and diversify your retirement account balance by selecting from the available mutual funds in the plan. To learn more about the investment options available to you, visit conehealth.corebridgefinancial.com or contact a member of your Corebridge financial professional team.
Target date portfolios, a hands-off approach
Cone Health’s retirement plans also give you the opportunity to invest in target date portfolios designed by Veratis Advisors, Inc., an independent investment consultant for Cone Health.
These portfolios are a single investment choice that help you diversify your retirement balance among the plans’ investment options and maintain an asset allocation strategy aligned with your personal risk tolerance and target retirement year. As you get closer to that target retirement year, your portfolio will automatically become more conservative to help reduce your risk and exposure in the market.
Questions? Let us help.
We understand that investing can sometimes feel complicated or overwhelming. The good news is that your dedicated financial professionals are here to help you make sense of it all. They can meet with you to review your investment options, answer questions and help you create a strategy to meet your personal needs.
Keep in mind that neither asset allocation nor diversification ensure a profit or guarantees against market loss.
The principal value of an investment in a target date fund is not guaranteed at any time including at or after the target maturity date. The target date is the approximate date when investors plan to start withdrawing their money. The fund will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date.
RO 2965429 (7/2023)