Do you have a hard time deciding how much of your retirement plan savings to invest in the different asset classes? While no one can predict how investments will perform in the future, the past can provide some guidance.
Historically, stocks have outperformed bonds and cash alternatives over the long term. But stocks are also subject to short-term volatility. Bonds tend to provide more modest returns than stocks but are generally less Volatile. Cash alternatives (such as U.S. Treasury bills) are considered the least risky of the three main asset classes, but they offer the lowest potential returns.*
There is no single asset allocation mix that is right for every investor. But the right mix for you will depend on your goals, time horizon, and risk tolerance.
* Note that cash alternative investments may not be federally guaranteed or insured and that it is possible to lose money by investing in cash alternatives. Returns on cash alternative investments may not keep pace with inflation, so you could lose purchasing power.
This publication is prepared by DST for the use of the sender. The sender and DST are unrelated companies. Articles are not written or produced by the sender.
This publication is designed to provide useful information about retirement plans and investing your plan account savings. While the information contained herein was obtained from reliable sources, it cannot be guaranteed as to completeness or accuracy. Before acting on any of the information provided, consult your professional advisor.
FR2017-0629-0025/E © 2017 by OST Systems, Inc.