Investment options of FOUNDATION 2 401(K) PLAN
Total Available Funds: 32
| Investment Description |
|---|
| UMB DB&T FDIC-Insured Investment Account – |
| American Century Small Cap Growth R6 – |
| Baird Baird Mid Cap Growth Institutional – |
| Federated Hermes Federated Institutional Hi Yld Bond Inst – |
| Fidelity Advisor Investment Gr Bd Z – |
| Fidelity 500 Index Institutional Prem – |
| Hartford Hartford Schroders International Stk SDR – |
| Invesco Intl Sml-Mid Com R6 – |
| Invesco Small Cap Value R6 – |
| John Hancock III Disciplined Val Mid Cap R6 – |
| JP Morgan JPMorgan Emerging Markets Equity R6 – |
| JP Morgan JPMorgan Large Cap Growth R6 – |
| Lord, Abbett & Co Lord Abbett Short Duration Income R6 – |
| Morningstar MFS Value R6 – |
| Nuveen Lifecycle Index 2010 R6 – |
| Nuveen Lifecycle Index 2015 R6 – |
| Nuveen Lifecycle Index 2020 R6 – |
| Nuveen Lifecycle Index 2025 R6 – |
| Nuveen Lifecycle Index 2030 R6 – |
| Nuveen Lifecycle Index 2035 R6 – |
| Nuveen Lifecycle Index 2040 R6 – |
| Nuveen Lifecycle Index 2045 R6 – |
| Nuveen Lifecycle Index 2050 R6 – |
| Nuveen Lifecycle Index 2055 R6 – |
| Nuveen Lifecycle Index 2060 R6 – |
| Nuveen Lifecycle Index 2065 R6 – |
| Parametric Parametric Commodity Strategy I – |
| Schwab Schwab Small Cap Index Sel – |
| Vanguard Balanced Index Adm – |
| Vanguard Inflation-Protected Secs Adm – |
| Vanguard Mid Cap Index Admiral – |
| Vanguard Wellesley Income Admiral – |
Investment model portfolios
We provide two types of investment model portfolios for FOUNDATION 2 401(K) PLAN participants. You can customize and follow a model portfolio in your plan account.
Types of portfolio strategies
- Strategic asset allocation portfolio: It invests in a diversified portfolio of multiple assets, buy-and-hold without frequently changing the asset allocation weights.
- Suitable: For long-term (more than 15 years, preferably more than 20 years), want to be tax efficient and can withstand interim drawdown or loss as high as 50% or more.
- Pros:
- Less error-prone
- Infrequent rebalancing or transactions
- Tax efficient for taxable brokerage investments
- Cons:
- Interim loss or drawdown can be substantial
- Possible low returns for an extended period, such as 10 years or longer
- Tactical asset allocation portfolio: it invests in a diversified portfolio of multiple assets, dynamically adjust stock and bond allocations to minimize losses during market stress.
- Suitable: For long-term (more than 10 years or preferably longer) capital. Investors are willing to rebalance as frequent as monthly.
- Pros:
- Reduce large interim loss or drawdown
- Less sensitive to investment entry point
- Likely to improve returns
- Cons
- Demand more frequent rebalancing or transactions
- Less tax efficient — more suitable in a tax-deferred account such as 401(k) or IRA
- Can experience a period of lower returns compared to a broad-based strategic allocation or a buy-and-hold benchmark, especially in some bull markets
These portfolios are proactively monitored and rebalanced on a monthly basis when needed, ensuring it remains in line with its target allocation.
Let us know (Email us) if you need help to create a custom model portfolio for your plan.
Retirement Plan (401(k)) Info for FOUNDATION 2 401(K) PLAN