A prospectus describes in detail the objectives of a particular mutual fund or variable annuity. Be sure to read these descriptions carefully since they will help you determine which investment options are most appropriate for you. It's also a good idea to speak with an experienced, professional financial advisor. Besides providing a snapshot of your account, you can also use it to monitor whether your investment choices continue to reflect your personal financial objectives. The money in your plan account will be subject to investment gains and losses based on the investment experience of the options you choose - this is often referred to as the trade off between risk and return.
Any investment involves some degree of financial risk.
Investment return means your account earns income, such as dividends and interest, plus or minus any change in the value of the investment option. In general, the greater the potential for return on your investment, the higher the risk. On the other hand, the less the potential return on your investment, the lower the risk. Each of your investment options offers a different degree of risk. Therefore, as you develop your investment portfolio, be sure to balance your tolerance for risk against the rate of return you wish to obtain.