Choosing a Life Stage Fund

 

If you donít have any reason to choose differently, allow the Age Based Investing program to make your investment decision for you.This program reduces your exposure to the stock market as you age.

 

Here are some examples of reasons some people have chosen a Life Stage Fund that is different than the Fund they would have under the Age Based Investing program.

 

1)†††††††† If you got a late start in the industry and want to take a bit more risk in the hope of greater investment returns to make up for your late start, you may want to choose a Life Stage Fund that gives you greater exposure to the stock market than you would have under the Age Based Investing program.

 

2)†††††††† If you are confident that the NASI Pension Fund, along with Social Security, will provide you and your spouse with a strong monthly income, and you are comfortable taking a bit more risk in your investments, you may want to choose a Life Stage Fund that gives you greater exposure to the stock market than you would have under the Age Based Investing program.

 

3)†††††††† If you are concerned that your SIS Pension money might lose value the way it is currently invested and do not want to take the risk of the stock market, you might want to give up the possibility of greater appreciation for the security of steady interest growth.This can be accomplished using the Capital Preservation Life Stage Fund.

 

4)†††††††† If you do not want to sacrifice all possibility of capital appreciation but you are concerned with the level of risk in the Life Stage Fund in which you are now invested, you may want to choose a Life Stage Fund that gives you less exposure to the stock market than you would have under the Age Based Investing program.

 

 

Internal Links

 

Back to How Should I Invest My SIS Pension Money?

Back to Planning for Retirement

 

External Links

 

Investopedia Ė Risk