Despite last year's downturn, long-term investors can take great comfort in the C Fund's performance. Financial experts yesterday urged savings plan investors to keep looking to the future and not dwell on last year's downturn. They actually had a pretty good year. These plans are long-term accumulation plans, and participants who are going to be successful in the long term are going to stay the course. My advice is, and always has been, you do not make plan-related decisions on current stock market conditions.
People have a tendency to look at things only once or twice a year.
This is something you should sit down and talk about with your spouse. In particular, Morgan said, federal employees need to review their investment allocations and examine what risks they are willing to take in coming years. The S Fund will invest in stocks of medium and small companies tracked by the Wilshire 4500 stock index, and the I Fund will invest in major European, Australian and Asian stocks tracked by the EAFE index. Wray said the new funds will give savings plan participants a chance to diversify their investments. Both indexes dropped in excess of 15 percent last year.