Take the Guesswork Out of Your Portfolio

Just like your car needs a regular tune-up for good performance, so does the investment portfolio in your Deferred Compensation Plan. And it isn’t as complicated as it might seem. In fact, we can help put your portfolio on cruise control!

There are two ways to tune up your portfolio:

1. If you choose your own mix of mutual funds, we have implemented an Auto – Rebalance function on the website. If you choose this option, any time one of your mutual funds falls 5% or more outside of the range you set, your portfolio will automatically rebalance, taking advantage of the ups and downs in the markets. For example, if you chose the Vanguard S&P 500 Index fund to be 40% of your mix and it grows to be 45%, the program will take the 5% growth and redistribute it to whichever mutual fund is short of its ideal percentage. This is basically skimming off the profit from one asset class by “selling high” and reinvesting by “buying low” with another. 

2. Target Date funds also accomplish this goal. This option is also known as a “set it and forget it” option because there are professional money managers who rebalance the mutual fund’s investment mix for you. A Target Date fund is a collection of mutual funds that already has the right balance of asset classes for your retirement date. They are listed by date, such as 2020 or 2035, and you choose the one closest to when you are likely to retire. Over time and the closer you get to using that money, the investments get more and more conservative, the way all retirement portfolios should be run. 

Don’t forget, we have a whole team of very knowledgeable mechanics (aka retirement specialists!) who will meet with you one-on-one to make sure your mix of investments is the right one for you. They can meet with you at your worksite when it’s convenient for you.

To reach a Retirement Specialist, please call the local Nationwide office at 858-569-0295.