More on the Three Tier Plan
Tier One – T. Rowe Price Retirement Date Funds
Designed for the investor who doesn't have the time or desire to actively track their Plan investments, the T. Rowe Price Retirement Date Funds are comprised of a number of mutual funds, one of which may be right for you, based on when you will reach age 65. Retirement Date Funds are designed to cover multiple asset classes and investment styles all in one fund. The later the retirement date you select, the higher the initial allocation will be in the stock market (potentially higher long-term returns), and the lower the allocation will be to fixed income investments (historically less volatile). Retirement Date Funds are designed to re-allocate assets from stock market investments to less risky fixed income and cash investments as you approach retirement.
Tier Two – do it yourself
Many investors choose to create their own asset allocation using the Plan's menu of individual investment options. This approach offers greater flexibility to choose an asset allocation that meets the individual investor's needs compared to Retirement Date Funds. Do-it-yourself allows participants to take a more active role selecting and managing their investments. The Plan strives to offer sound investment options in each major category. Investment options are chosen based on various factors, such as: long-term record, management stability, investment style consistency and lower-than-industry-average expenses.
Tier Three – Schwab Personal Choice Retirement Account®
The Charles Schwab & Co. Inc., (Member SIPC) Personal Choice Retirement Account® (PCRA) is designed for participants who wish to diversify their portfolio even more by investing a portion of their Plan balance in mutual funds or exchange trade funds (ETFs) not included in the Plan's do-it-yourself investment options. Get answers about the Schwab PCRA from the Self Directed Investment Account Handbook (PDF).
Target Maturity Funds are designed to provide diversification and asset allocation across several types of investments and asset classes, primarily by investing in underlying funds. Therefore, in addition to the expenses of the Target Maturity Funds, an investor is indirectly paying a proportionate share of the applicable fees and expenses of the underlying funds.
Target Maturity Funds are designed for people who plan to withdrawal funds during or near a specific year. Like other funds, target date funds are subject to market risk and loss. Loss of principal can occur at any time, including before, at or after the target date. There is no guarantee that target date funds will provide enough income for retirement.
Before investing, you should carefully consider the fund’s investment objectives, risks, charges, and expenses. This and other information is contained in the fund prospectus, which is available by calling 1-800-422-8463. Read it carefully before you invest.
Get the help you need
Contact us if you have questions about investment options with the Plan. Remember, investing involves market risk, including the possible loss of the money invested.
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