BLOODWORKS NORTHWEST RETIREMENT PLAN Investment Options

How to Build a Balanced, Diversified Portfolio with the BLOODWORKS NORTHWEST RETIREMENT PLAN

Constructing a balanced, diversified portfolio is essential for long-term financial health, especially when it comes to retirement planning. As a participant in the BLOODWORKS NORTHWEST RETIREMENT PLAN, you have a range of investment options available. In this article, we'll guide you through the process of constructing a well-rounded portfolio using the four-step RAID approach: Risk Assessment, Asset Allocation, Investment Selections, and Disciplined Rebalancing. We'll focus on utilizing the low-cost index funds available to you whenever possible.

Investment Options Available in Your Plan

Here are the investment options available to you:

  • CREF STOCK R2 REGISTERED INVESTMENT COMPANY
  • CREF GROWTH R2 REGISTERED INVESTMENT COMPANY
  • CREF GLOBAL EQUITIES R2 REGISTERED INVESTMENT COMPANY
  • CREF EQUITY INDEX R2 REGISTERED INVESTMENT COMPANY
  • TIAA-CREF LFCYLE IDX 2030-INST REGISTERED INVESTMENT COMPANY
  • TIAA-CREF LFCYLE IDX 2040-INST REGISTERED INVESTMENT COMPANY
  • TIAA-CREF LFCYLE IDX 2045-INST REGISTERED INVESTMENT COMPANY
  • TIAA-CREF LFCYLE IDX 2020-INST REGISTERED INVESTMENT COMPANY
  • TIAA-CREF LFCYLE IDX 2035-INST REGISTERED INVESTMENT COMPANY
  • MFS VALUE FUND CLASS R6 REGISTERED INVESTMENT COMPANY
  • TIAA-CREF LFCYLE IDX 2050-INST REGISTERED INVESTMENT COMPANY
  • CREF MONEY MARKET R2 REGISTERED INVESTMENT COMPANY
  • CREF SOCIAL CHOICE R2 REGISTERED INVESTMENT COMPANY
  • VANGUARD 500 IDX ADM REGISTERED INVESTMENT COMPANY
  • TIAA-CREF LFCYLE IDX 2025-INST REGISTERED INVESTMENT COMPANY
  • CREF CORE BOND R2 REGISTERED INVESTMENT COMPANY
  • VANGUARD INTL GROWTH ADM REGISTERED INVESTMENT COMPANY
  • METROPOLITAN W TOT RET BD PLN REGISTERED INVESTMENT COMPANY
  • TIAA-CREF LFCYLE IDX 2055-INST REGISTERED INVESTMENT COMPANY
  • VANGUARD MID-CAP IDX ADM REGISTERED INVESTMENT COMPANY
  • TIAA-CREF SOCIAL CH EQ-INST REGISTERED INVESTMENT COMPANY
  • CREF INFLATION-LINKED BOND R2 REGISTERED INVESTMENT COMPANY
  • TIAA-CREF LFCYLE IDX RTIN-INST REGISTERED INVESTMENT COMPANY
  • VANGUARD SMALL-CAP IDX ADM REGISTERED INVESTMENT COMPANY
  • VANGUARD REAL ESTATE IDX ADM REGISTERED INVESTMENT COMPANY
  • T. ROWE PRICE BLUE CHIP GR I REGISTERED INVESTMENT COMPANY
  • VANGUARD EMR MKTS STK IDX ADM REGISTERED INVESTMENT COMPANY
  • AMERICAN FD NEW PERSPECTIVE R6 REGISTERED INVESTMENT COMPANY
  • VANGUARD FEDERAL MONEY MKT INV REGISTERED INVESTMENT COMPANY
  • MFS NEW DISCOVERY FUND R6 REGISTERED INVESTMENT COMPANY
  • VANGUARD TTL INTL STK IDX ADM REGISTERED INVESTMENT COMPANY
  • TIAA-CREF LFCYLE IDX 2015-INST REGISTERED INVESTMENT COMPANY
  • FRANKLIN SMALL CAP VALUE R6 REGISTERED INVESTMENT COMPANY
  • TIAA-CREF LFCYLE IDX 2060-INST REGISTERED INVESTMENT COMPANY
  • TIAA-CREF LFCYLE IDX 2010-INST REGISTERED INVESTMENT COMPANY
  • VANGUARD TTL BD MKT IDX ADM REGISTERED INVESTMENT COMPANY
  • VANGUARD INTR-TRM BND IDX ADM REGISTERED INVESTMENT COMPANY
  • VANGUARD INFO TECH IDX ADMIRAL REGISTERED INVESTMENT COMPANY
  • VANGUARD FTSE SOCIAL INDEX ADM REGISTERED INVESTMENT COMPANY
  • TIAA-CREF LFCYLE IDX 2065-INST REGISTERED INVESTMENT COMPANY
  • VANGUARD HEALTH CARE ADM REGISTERED INVESTMENT COMPANY
  • TIAA TRADITIONAL NON BENEFIT RESPONSIVE INSURANCE COMPANY GENERAL CONTRACT
  • TIAA TRADITIONAL BENEFIT RESPONSIVE INSURANCE COMPANY GENERAL CONTRACT

Step 1: Risk Assessment

The first step in constructing your portfolio is assessing your risk tolerance. Risk tolerance is the degree to which you're comfortable with the potential for losses in your investments in exchange for the possibility of higher returns. Your risk tolerance should be influenced by your age, job stability, financial goals, and time horizon.

To help decide how much of your portfolio should be allocated to stocks versus bonds, you can refer to the MyPlanIQ Get Started Now guide. Typically, younger investors with longer time horizons can afford to take on more risk by allocating a higher percentage to stocks, while those nearing retirement may want to shift more towards bonds for stability.

Step 2: Asset Allocation

After determining your risk profile, the next step is to decide how to allocate your investments across various asset classes. The main asset classes available to you in the BLOODWORKS NORTHWEST RETIREMENT PLAN include:

  • US Stocks
  • International Stocks
  • Emerging Market Stocks
  • Real Estate Investment Trusts (REITs)
  • Bonds

You can use asset allocation templates discussed in MyPlanIQ's Asset Allocation Portfolio Templates. For example, a balanced portfolio for a moderate risk investor might allocate 42% to US stocks, 18% to international stocks, and 40% to bonds.

Step 3: Investment Selections

Once you've determined your asset allocation, you'll need to select the specific funds that match each asset class. For example:

  • US Stocks: You might choose the Vanguard 500 Index Admiral for broad exposure to large-cap US stocks.
  • International Stocks: Vanguard Intl Growth Adm provides a diversified international exposure.
  • Emerging Market Stocks: Vanguard EMR MKTS STK IDX ADM is an ideal choice for this asset class.
  • REITs: The Vanguard Real Estate IDX ADM offers exposure to the real estate market.
  • Bonds: Consider the Vanguard TTL BD MKT IDX ADM for a broad bond market index.

Emphasizing low-cost index funds where possible will help you minimize expenses and maximize returns over the long term.

Step 4: Disciplined Rebalancing

Regular monitoring and rebalancing of your portfolio are crucial for maintaining your desired asset allocation. Over time, market fluctuations can cause your portfolio to drift from its original allocation. For instance, if stocks outperform bonds, your portfolio may become more stock-heavy, increasing your risk level. Periodically rebalancing---selling some of the better-performing assets and buying more of the underperforming ones---helps you stay on track with your investment strategy.

Example Portfolio with Moderate Risk

Using the principles above, here's an example of how you might construct a moderate risk (60% stocks, 40% bonds) portfolio:

  • US Stocks (42%): Vanguard 500 Index Admiral
  • International Stocks (18%): Vanguard Intl Growth Adm
  • Bonds (40%): Vanguard TTL BD MKT IDX ADM

This simple portfolio provides broad diversification across key asset classes while keeping costs low, helping you stay aligned with your retirement goals.

Conclusion

Constructing a balanced and diversified portfolio is an ongoing process that involves regular monitoring and adjustments. By following the RAID approach---Risk Assessment, Asset Allocation, Investment Selections, and Disciplined Rebalancing---you can build a portfolio that aligns with your risk tolerance, financial goals, and time horizon. Remember, the key to successful retirement investing is to start early, stay consistent, and remain disciplined in your approach.

For more information, refer to the MyPlanIQ Four-Step Guide for 401k Retirement Investing and the Asset Allocation Portfolio Templates.

Click to view the investment model portfolios of this plan ►

Basic asset allocation templates

The following asset allocation templates are based on popular lazy portfolios. These are core or major asset class-based portfolios using ultra-low-cost index funds for each asset class. Once you have decided on your proper risk asset (stocks) allocation, you can utilize these lazy portfolio templates to scale the allocations to your risk allocation level. See Asset Allocation Portfolio Templates for a guide:

The return data shown below all have the same latest date: 05/16/2025.
Name YTD Return 1Yr AR 3Yr AR 5Yr AR 10Yr AR 15Yr AR 20Yr AR Inception
Four Core Asset Portfolio 2.77% 7.49% 7.66% 7.92% 6.31% 7.37% 6.84% 6.51%
Five Core Asset Portfolio 2.58% 7.46% 7.54% 7.79% 6.25% 7.27% 6.92% 6.70%
Three Core Asset Portfolio 2.75% 7.72% 8.47% 8.38% 6.70% 7.67% 6.98% 6.45%
Two Core Asset Portfolio 1.01% 8.53% 9.28% 8.97% 7.83% 8.86% 7.69% 6.95%
Yale Endowment Template 3.11% 7.71% 7.01% 7.92% 6.75% 8.21% 7.60% 7.78%
S&P 500 Index 1.76% 13.83% 15.73% 16.78% 12.73% 13.68% 10.51% 8.55%

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