Manage

At least two times a year, be sure to compare your current asset allocation to your investment strategy and re-balance your portfolio as necessary. Did you intend to have 60% of your funds in stocks, 30% of your funds in bonds, and the remaining 10% in cash equivalents? Well, over time, your asset allocation can drift away from your original strategy as one type of investment out-performs another. For example, if the value of your stock funds grows more rapidly than the value of your bond or cash funds, then you may find that over time 70% of your current holding is invested in stocks, rather than the 60% you intended. Your portfolio may now be more aggressive or risky than you intend. You can correct this asset allocation drift and re-establish your original investment strategy, by regularly re-balancing your account. You may re-balance your account online by logging in to your account and following the links to “Rebalance Portfolio”.

Remember that quiz you took that suggested you were an Aggressive Investor? Well, you’re not 25 anymore. Now that you have fewer years until retirement, you may find that you no longer have the investment horizon to weather the ups and downs of the market. As you near retirement, you may want to have a larger percentage of your funds invested in more conservative funds like balanced funds, bond funds or cash equivalents. Regardless of your circumstances, time changes a lot of things including your investment profile. Make sure that you regularly review your portfolio to make sure that your asset allocation reflects your current tolerance for risk.

Have you had a major life change? Did you get married, divorced, or maybe you had children? Be sure that your beneficiary designation is up to date, reflecting your current life circumstances. You can update your beneficiary designation easily online by logging into your account and following the links to “Beneficiaries”. Remember, if you designate a beneficiary other than your spouse, your spouse’s notarized signature is required to validate your beneficiary designation.

Be sure to regularly review your paychecks and your retirement plan statements to make sure that your contribution amount is correct. At least annually, review your contribution percentage. When you get a raise, consider using part of the raise to increase your contribution percentage. Are you saving enough to live your retirement dreams?

When you retire or change jobs, you can take a distribution from your account. You may take a cash distribution or rollover your funds to an individual retirement account (IRA) or to your new employer’s qualified plan. If you receive a cash distribution, your distribution is subject to a 20% mandatory withholding for federal income taxes. A 10% tax penalty may also apply if you are under 59 ½ years old. If you rollover your funds to a qualified plan or IRA, you will continue to defer paying taxes on your account balance. To request a distribution, login to your account and download a distribution form by following the links to “Forms” or request an online termination distribution by following the links to “Termination”.