Investment Options
The performance of an individual investment or asset class depends
on many factors. For example, market returns, both domestically and abroad, can
be affected by geopolitical events beyond any investor's control. Additional factors
include investment approach, preferences for portfolio development and how to keep
it on track, the cost of the investments, and what you expect from your investment
company.
We believe that the most effective way to ensure investment success over the long
term is to focus on the factors that can be controlled. We also believe that index funds can help your employees build
their retirement portfolios efficiently. Index funds, specifically Exchange Traded Funds (ETFs),
offer the dual advantages of portfolio diversification and low portfolio management
costs.
Your ShareBuilder 401(k) Account provides you with different options on how you
can invest in your retirement with a diverse group of index funds across multiple
asset classes. You can select from a list of model portfolios
that take into account your risk tolerance and time horizon for investing. Each
model portfolio includes a set of index funds and a pre-established allocation percentage
for each fund.
If you are more comfortable with selecting your own investments then you can build
your own portfolio. Simply select from the list of index funds in which you want
to invest and establish how much of your paycheck contribution you want to allocate
to each fund.
To help you better understand the model portfolios and index funds available in
the ShareBuilder 401(k), visit our
Investment Center.
Features
- Diversified investment choices across multiple asset classes through 15 index
funds
- Inclusion of 5 model portfolios tailored to meet the varying needs and risk
tolerance of individual investors
- All model portfolios
are reviewed by ShareBuilder's investment advisors to ensure they are aligned with
market changes
- Employees can automatically rebalance their portfolios
quarterly to maintain their intended asset allocation
Benefits
- Index funds have lower expense ratios than mutual funds, giving employees
the potential for a greater return on their investment
- Employees can create a diversified portfolio strategy by using ShareBuilder's
model portfolios
- Employees can put their 401(k) investing on auto-pilot by using our portfolio
realignment service and rebalancing feature