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Investment options of Old Second Bancorp, Inc. Employees’ 401(k) Savings Plan and Trust
Total Available Funds: 25
| Investment Option List |
|---|
| Schwab Retirement Value Advantage Money Fund (SWVXX) |
| Diversified Equity Portfolio (CLSAX) |
| Bond Fund (BEGBX) |
| Strategic Dividend Fund (SVAIX) |
| Balanced Fund (MBEYX) |
| Federated Capital Preservation Trust Fund |
| American Century Mid Cap Value CL R6 (IACIX) |
| American Funds New World R6 (HVWBX) |
| Dodge & Cox Stock Fund (DODFX) |
| Federated International Equity Fund (HIEIX) |
| Federated Ultra Short DB FD Inst SH (USBIX) |
| Fidelity Mid Cap Index (FIIMX) |
| JPMorgan Small Cap Growth Fund R6 (JISGX) |
| Neuberger Berman Mid Cap Growth Inst (NMANX) |
| Schwab Small Cap Index (SWSMX) |
| T. Rowe Price All-Cap Opportunities (PNZAX) |
| T. Rowe Price Retirement 2020 I (TRDBX) |
| T. Rowe Price Retirement 2030 I (TRFHX) |
| T. Rowe Price Retirement 2040 I (TRHDX) |
| T. Rowe Price Retirement 2050 I (TRJLX) |
| T. Rowe Price Retirement 2060 I (TRLNX) |
| Vanguard 500 Index Fund (VFINX) |
| Vanguard Developed Markets Index (VDMIX) |
| Vanguard Small Cap Value Index Admir (VISVX) |
| Old Second Bancorp, Inc. common stock (FMIMX) |
Investment model portfolios
We provide two types of investment model portfolios for Old Second Bancorp, Inc. Employees’ 401(k) Savings Plan and Trust 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 Old Second Bancorp, Inc. Employees’ 401(k) Savings Plan and Trust