Home < Human
Resources and Benefits Briefing < July
2006
It was your first week as a new UC employee, and there were just too many decisions to make. You knew you wanted to start saving for your retirement, so you enrolled in UC’s Tax-Deferred 403(b) Plan and designated a fund for your contributions. Now, months, even years have gone by and your 403(b) Plan contributions are still being invested in the same single fund. If you haven’t done so already, now is a good time to take a look at your whole investment portfolio—including your Defined Contribution and 457 Deferred Compensation Plan accounts—to determine if it is properly diversified.
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Diversification means making sure you have a mix of equities (stocks), bonds, and interest-income assets. By spreading investments among different asset classes that have varying degrees of risk and growth potential, you can protect your investments from drastic swings in the market and potentially outpace inflation.
The UC Retirements Savings Program has a number of ways to help you diversify your portfolio:
- Invest in a single, diversified investment option such as one of the UC Pathway Funds or the UC Balanced Growth Fund. Each fund holds a combination of asset classes in varying mixes.
- Create your own investment mix by investing your contributions in a combination of single asset class options such as the UC Equity Fund, the UC Bond Fund, and so on.
Currently UC and Fidelity Investments Tax-Exempt Services Company (FITSCo) are embarking on a campaign to encourage those whose Retirement Savings Program investments remain in only a single non-diversified fund to consider diversifying their asset allocation.
For more information about the UC Retirement Savings Program and the investment options offered, visit the FITSCo website at www.netbenefits.fidelity.com or talk with a FITSCo Retirement Services Representative at 1-866-682-7787.
