Investment Guide: Getting Started with Target Date Funds

Target Date Funds (TDFs) are professionally designed and managed specifically for various target retirement dates. TDFs were created to further simplify investing by providing a convenient "cruise-control" alternative that automatically becomes more conservative as you get closer to retirement and manages the glide path after retirement to help meet ongoing income needs. Each of these TDFs is well diversified and contains a mixture of stocks, bonds and alternative investments. 

The investment mix within each TDF considers risk that is appropriate for each retirement date and appropriate investment allocations during the working years and the retirement years. For example, allocations to more conservative investments will automatically increase in the Funds as an investor ages.  With TDFs, allocations are dynamic and change as participants age.

ADDITIONAL FEATURES

Automatic Re-balancing

These TDFs were designed to provide the investor with "cruise control" operation. One of the convenient features is automatic re-balancing, which is re-allocating the funds within each TDF back to their original allocation percentages. This is necessary because some funds will grow faster than others, causing them to have allocations to some funds that are much larger than intended. To prevent the TDFs from becoming too unbalanced, CCOERA will re-balance each TDF at the beginning of every quarter.

All-Source Inclusive

To further simplify investing for your retirement, all of your existing account balance from each source (ie. Employee Contributions, Matching Employer, Deferred Compensation, etc.) are automatically re-allocated according to the percentages in the TDF that you selected. Additionally, all future contribution sources will be allocated in the fashion. There are no confusing forms to complete or allocation formulas to calculate.

Professional Oversight

CCOERA, and our professional investment advisor, will continually monitor the performance of each fund in the TDFs. When a fund fails to perform, it will be deleted and replaced - automatically. Additionally, each TDF allocation is reviewed each year, and revised as determined by CCOERA's investment advisor.