Investment options of TAX-FAVORED SAVINGS PROGRAM
Total Available Funds: 19
| Investment Description |
|---|
| MFS GLOBAL EQUITY R6 MUTUAL FUND |
| FIDELITY US BOND INDEX MUTUAL FUND |
| FIDELITY EXTERNAL MARKET INDEX FAI MUTUAL FUND |
| FIDELITY INVESTMENT MONEY MARKET GOVERNMENT PORTFOLIO MUTUAL FUND |
| S&P 500 INDEX PLC CL E COMMON COLLECTIVE FUND |
| WT SMID CAP RESEARCH EQUITY 4 COMMON COLLECTIVE FUND |
| FIDELITY GROWTH COMPANY POOL 3 COMMON COLLECTIVE FUND |
| DIAMOND HILL LARGE CAP COMMON COLLECTIVE FUND |
| GALLIARD STABLE RETURN X COMMON COLLECTIVE FUND |
| PRINCIPAL DIVERSIFIED REAL ASSET CIT T1 COMMON COLLECTIVE FUND |
| BLACKROCK TOTAL RETURN COMMON COLLECTIVE FUND |
| HRDG LVNR INTL BN COMMON COLLECTIVE FUND |
| VANGUARD TOTAL INTL STOCK COMMON COLLECTIVE FUND |
| SS TARGET RET INC IV COMMON COLLECTIVE FUND |
| SS TARGET RET 2020 IV COMMON COLLECTIVE FUND |
| SS TARGET RET 2025 IV COMMON COLLECTIVE FUND |
| SS TARGET RET 2030 IV COMMON COLLECTIVE FUND |
| SS TARGET RET 2050 IV COMMON COLLECTIVE FUND |
| SS TARGET RET 2060 IV COMMON COLLECTIVE FUND |
Investment model portfolios
We provide two types of investment model portfolios for TAX-FAVORED SAVINGS PROGRAM 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 TAX-FAVORED SAVINGS PROGRAM