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Why is having a retirement plan so important?

What do I need to consider when investing?

Power of Compounding

Tax Advantages

University
Contribution

Voluntary
Contribution

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Effects of Inflation Over Time

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Stocks

Bonds

Annuities

Stocks represent shares of ownership in publicly held companies and have historically outperformed all other major asset classes. They also tend to be the most volatile asset class in the short-term, and recent market trends have shown that there can be substantial short-term loss.

Multi-asset mutual funds (which include lifecycle/target date funds) invest in a mixture of funds that in turn invest in stocks and bonds to build a diversified portfolio across asset classes. The target percentages for each type of investment are stated in their prospectuses.

Fixed-income investments are debt securities that generally pay a set rate of interest over a given period. Bond values fluctuate in response to current interest and inflation rates. Bonds can be used in conjunction with stocks to balance risk since bond values tend to be less volatile than stocks. Bond funds typically offer no guarantees. These are traditionally lower-risk, safer investments.

Money market investments are relatively safe, liquid, short-term interest-bearing investments. While they may be suitable as short-term “parking spaces” as you formulate a long-term investment strategy, money market accounts are not typically considered suitable long-term retirement investments. Please be aware that these investments are not insured by the U.S. government.

Guaranteed assets, backed by the claims-paying ability of an insurance company, preserve your principal and provide at least a specified minimum return. They are the lowest-risk alternative for long-term saving, but historically have not kept pace with many other investment returns, especially those for stocks, and may not be as liquid as other investments.

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Conservative

Moderate

Aggressive

Question 1 of 6

Which of the following is most consistent with your investment philosophy?

A portfolio will most likely...

A. Exceed long-term inflation by a significant margin and have a high degree of risk

B. Exceed long-term inflation by a moderate margin and have a high to moderate degree of risk

C. Exceed long-term inflation by a small margin and have a moderate degree of risk

D. Match long-term inflation and have a low degree of risk

Question 2 of 6

Please select the portfolio with which you are most comfortable.

	Possible Average Value at the End of the Year	Chance of Losing Money at the End of the Year
Portfolio A	$106,000	16%
Portfolio B	$107,000	21%
Portfolio C	$108,000	25%
Portfolio D	$109,000	28%

Question 3 of 6

Considering this, which statement best describes your investment goals?

A. Protect the value of my account. In order to minimize the chance for loss, I am willing to accept the lower long-term returns provided by conservative investments.

B. Keep risk to a minimum while trying to achieve slightly higher returns than the returns provided by investments that are more conservative

C. Balance moderate levels of risk with moderate levels of return

D. Maximize long-term investment returns. I am willing to accept large and sometimes dramatic fluctuations in the value of my investments.

Question 4 of 6

Suppose you owned a well-diversified portfolio that fell by 20% over a short period, consistent with the overall market. Assuming you still have 10 years until you begin withdrawals, how would you react?

A. I would not change my portfolio

B. I would wait at least one year before changing to options that are more conservative

C. I would wait at least three months before changing to options that are more conservative

D. I would immediately change to options that are more conservative

Question 5 of 6

Which of these portfolios would you prefer to hold?

Portfolio A

Portfolio B

Portfolio C

Portfolio D

Question 6 of 6

I am comfortable with investments that may frequently experience large declines in value if there is a potential for higher returns.

A. Agree

B. Disagree

C. Strongly Disagree

Risk Questionnaire Results: Aggressive

Investments

89% Equities

Stocks

11% Non-Equities

Bonds (Fixed-Income)
Cash (Money Market)
Guaranteed

“I can stomach a big drop in my investments' value — even over several years — in pursuit of long-term growth.”

Risk Questionnaire Results: Conservative

Investments

17% Equities

Stocks

83% Non-Equities

Bonds (Fixed-Income)
Cash (Money Market)
Guaranteed

“Downturns make me very nervous. I'll accept the lower long-term growth in exchange for rock solid stability.”

Risk Questionnaire Results: Moderately Conservative

Investments

37% Equities

Stocks

63% Non-Equities

Bonds (Fixed-Income)
Cash (Money Market)
Guaranteed

“I can tolerate some volatility in a small portion of my investments for the chances of a higher return longer-term.”

Risk Questionnaire Results: Moderately Aggressive

Investments

75% Equities

Stocks

25% Non-Equities

Bonds (Fixed-Income)
Cash (Money Market)
Guaranteed

“I'm willing to accept greater volatility and risk by tilting my investments toward growth.”

Risk Questionnaire Results: Moderately Conservative

Investments

37% Equities

Stocks

63% Non-Equities

Bonds (Fixed-Income)
Cash (Money Market)
Guaranteed

“I can tolerate some volatility in a small portion of my investments for the chances of a higher return longer-term.”

Conservative

Usually seeks greater stability and lower level of risk.

Moderately Conservative

Usually seeks a balance between safety and growth, but still very concerned with preserving existing accumulations.

Moderate

Usually seeks a balance between safety and growth.

Moderately Aggressive

Probably willing to take somewhat more risk in pursuit of greater growth.

Aggressive

Probably comfortable with a higher level of risk to pursue growth potential.

Equity

Non-equity

Importance of Saving

Risks

Diversification

Type of Investor

How would you like to approach your retirement strategy?

1. I just want something quick, simple and completely managed by professionals

2. I want to have some control but rely on help from professionals

3. I want to have complete control and invest on my own

I'm not sure, help me decide

Which way should you invest?

Take the Quiz

Question 1 of 3

Which best describes you as an investor?

I want a simple, convenient retirement investment

I like to have some choices but I don't want to be overwhelmed

I like to have a wide range of choices and want to be very involved

Question 2 of 3

What makes you the most comfortable?

Having my retirement funds managed entirely by investment professionals

Choosing from a select group of retirement investments on my own

Doing my homework, then choosing and managing my own retirement funds

Question 3 of 3

What gives you the most peace of mind?

Knowing I have built-in diversification and risk is automatically adjusted for me

Knowing I can have the level of diversification I want and stay involved

Knowing I'm responsible for choosing and managing my retirement funds

Your Choice:

Strategy 1

One-Step Investing

(Target Date Funds)

Your Choice:

Strategy 2

Mix Your Own
Select Choice

(Passively & Actively
Managed Funds, Annuities)

Invests similar
to market index

Tries to outperform
general market

Provides retirement
income over lifetime

Your Choice:

Strategy 3

Self-Directed
Brokerage
Account

Strategy 2

Mix Your Own
Select Choice

(Passively & Actively
Managed Funds, Annuities)

Invests similar
to market index

Tries to outperform
general market

Provides retirement
income over lifetime

Strategy 1

One-Step Investing

(Target Date Funds)

In what year were you born?

Submit

Your Target Date Fund date would be: 2035

 

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Explore other investment options

Learn about saving for retirement

Strategy 3

Self-Directed
Brokerage
Account

What would you like to do next?

Enroll now

Explore other investment options

Learn about saving for retirement

For more information:

Enrollment

U of R Retirement Benefits

Make an appointment with a TIAA-CREF consultant

Call TIAA-CREF at 1-800-410-6497