Strategic Allocation Funds-A Sweet Solution

Picture this: It’s a lazy Sunday afternoon and your hand is clutching the coin you saved all week to spend. You’re a kid again in the local corner candy store, and you are free to spend your coin on the candy of your choice. Now, unless you have an absolute must-have favorite, your head may begin to spin. “But they all look so good... and they all have such enticing names... and they all look so satisfying...” Choosing how to allocate your investments may seem like a trip to the candy store. However, there are options available that may make your decision easier, such as Strategic Allocation Funds. With a Strategic Allocation Fund, you just choose the "flavor" or type of fund that best suits your retirement savings goals and the fund manager does the rest, choosing the investments that best fit the fund’s objectives.

Selecting a Strategic Allocation Fund to help meet your retirement income needs is easy. You simply identify your retirement time horizon (how many years you have until you retire), how much money you will need in retirement, and what investment return you’ll need to achieve this goal. Then compare these factors to a Strategic Allocation Fund that best matches your profile. Choosing the various types of investments, such as stocks, bonds, and cash equivalents, and keeping the asset allocation balance in line with the fund’s investment objectives and goals, are the responsibilities of the fund manager. And so you see, investing in a Strategic Allocation Fund may be a sweet solution to help meet your retirement income goals.