Your plan offers you several easy ways to diversify… | |||||||||||||||||||||||||||||||
Most, if not all, of the choices in your retirement plan are mutual funds.
A mutual fund pools together the money of many investors to buy a range of
in- vestments that fit a certain classification. This built-in diversification
helps reduce your risk, because if one investment within the fund decreases
in value, that loss could be balanced by possible gains made by other investments
in the fund. Mutual funds usually fit into the categories of con- servative, moderate, and aggressive, or a blended segment within those categories. |
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Your retirement plan also lets you diversify by giving you a wide choice
of investments across the different categories of risk and reward. Plus
your plan lets you mix these choices in whatever way best fits your goals. |
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You're not tying your future to the performance of one type of investment. You're balancing the different risks and rewards of every investment you select. |
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Now, how do you decide which are the investments for you?… |
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