If you are uncomfortable in choosing which investment options to use or you are unfamiliar with the market, you may want to look at the preset life cycle strategies. These strategies are designed to set up an investment mix for you based upon the length of time you have left to invest. Life Cycle Strategies - details and comparison Additional information about these three Life Cycle Strategies, and how to allocate your savings, is provided on the Investment Contract. Too Late The money you stash away during the first several years can be the most important contribution you'll make. That's because it has the most time to grow through tax-deferred compounding.
Some people dread the thought of losing money, so they rely on fixed income investments.
By favoring money market funds and other fixed income investments, you expose yourself to the ravages of inflation. So, if you have 10 years or more to invest, it is usually wise to include stocks in your investment mix. The ups and downs have time to cancel each other out, leaving you with more money. In One Basket You read somewhere that stocks have historically high returns. That's where I'll put all of my money.