Page 8 - SGH Profit Sharing & 401(k) Plan and Trust

Target Date Retirement Funds Looking for a way to spend less time worrying about saving for retirement and more time preparing to enjoy it? Consider one of the target date retirement funds available to you through the Plan. What Are Target Date Retirement Funds? Investing in a single target date fund may give you a complete retirement investment portfolio, consisting of a diversified mix of investments. Think of it as a ready-made meal: one fund intended to provide the balance of asset ingredients necessary to help maintain a healthy portfolio. This can be a smart strategy, especially if you lack the time, confidence, or desire to actively manage and monitor your investments yourself. HOW TARGET DATE RETIREMENT FUNDS WORK: Target date funds put investment selections and portfolio diversification in the hands of professional fund managers. Each fund tracks toward a defined year, the target date, when you plan to retire or stop contributing. Its investment strategy becomes progressively more conservative as that target nears. The intent is to allow you to remain in the same fund from the time you begin to save until you retire. People typically invest in the fund with the target date closest to their planned year of retirement, but other factors—such as current savings, outside investments, or risk appetite—should be considered so you can choose a fund that aligns with your financial goals. But target date funds don’t automatically adjust if your personal circumstances change, so it’s a good idea to regularly review your goals and holistic financial picture. Keep in mind that, as with all investments, there’s no guarantee that target date funds will achieve the returns or provide the income necessary to last through retirement. 8 SGH Profit Sharing & 401(k) Plan and Trust