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When you exercise, stretching and improving
your balance can help you stay in shape.

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Turns out your retirement plan can 
benefit from a little balance too.

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It’s called asset allocation.

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By having the right mix of investments, you
have the potential to achieve your goals 
while helping manage your risk.

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There are three basic types of investments.

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Cash and stable value investments help 
keep your original investments safe,

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but have limited potential for growth.

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When you buy a bond, you’re lending money 
to a corporation or government entity.

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In return, you receive regular interest payments
 until the money is repaid.

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Bonds can provide a relatively 
stable form of regular income,

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but typically offer only moderate growth.

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Buying stocks gives you part ownership in companies.

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Your goal is that the company’s value
will increase over time,

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and your investment will be worth 
more than when you bought it.

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Historically stocks have produced higher 
returns than either cash or bonds,

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but they can also involve greater downside risk.

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The further away your retirement, the 
more stocks you may want to hold

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because you’ll have time to benefit 
from long-term gains

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and recover any short-term losses.

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Find your balance by deciding the 
level of risk you’re comfortable with

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based on your retirement time horizon.

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Then choose investments that match 
your level of risk and timeframe.

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Remember, not having enough money
for a comfortable retirement can 
be the greatest risk of all.

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Just as balancing requires constantly 
making small adjustments to keep from falling,

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balancing your retirement plan 
requires regular adjustments too.

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At least once a year, or more, if 
there’s been unusual market activity,

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you should check your retirement plan’s asset 
allocation and make sure it’s still in balance.

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For example, if you split your assets 70% in 
stock mutual funds and 30% in bond funds,

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and the stock market 
performed particularly well,

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the value of your stock funds might grow 
to represent 80% of your investment.

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To keep your balance, you’d want 
to shift 10% of your stock funds 

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back into bond funds to return to 
your original asset allocation.

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Now it’s time to find your balance.

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Take a look at your asset allocation online 
or call a retirement specialist now.