The employee usually controls how assets are invested. Growth funds tend to be more volatile than more conservative income or money market funds. A fund whose goal is income through investments in bonds that produce income or increase in value. A fund designed to duplicate the return of a selected market index. The rise in the cost of goods and services over time.
Inflation reduces buying power.
Money market instruments are one of the most liquid investments, providing safety of principal, variable interest, and quick access. A pension plan in which employer contributions are fixed and usually determined as a percentage of pay. Each share in the fund represents part ownership of many different securities and all shareholders share equally in the gains and losses of that fund. Shares are usually redeemable on demand. A plan that does not meet the requirements for preferential tax treatment under the Internal Revenue Code.