MODULE 1: INVESTING GROUP RETIREMENT PLANS

In less than 5 minutes, this video explains the basics of investing and how to choose the right investment path based on three simple questions

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Slide 1:  Hi, My name is Jim and I’ve been in the financial industry for 20 years.  In this quick video, I want prove to you that investing is not rocket science especially when it comes to making decisions for your Group Retirement Plan.

In my 20 years in the financial industry, I think the most common questions I get are around picking investments:

What should I Invest in?

How do I pick investments?

The good news is it’s easier than you think.  Let me show you . . .

SLIDE 2:  Making investment decisions for your group retirement plan starts by answering three simple questions:

  1. How much to you know about investing?  Are you knowledgeable or not at all?
  2. How interested are you in investing? Some people like investing while others have no interest in it at all
  3. Will you watch your investments? Will you engage in your portfolio and watch it from time to time or are you the type of person that is going to just leave it.

Be very honest with yourself!

Let’s start with the first group of people.  If you are the type of investor who is very passive and hands off because you don’t really like this stuff and you are too busy with other things, then you are an ideal candidate for TARGET DATE FUNDS.  I’ll explain what those are in a minute

SLIDE 3:  On the other hand, if you have some interest in investing and follow the portfolio a bit, you might want to move to an ASSET ALLOCATION FUND.  It’s not that much more hands on than target date funds but you should review your risk profile from time to time as opposed to being completely hands off.

SLIDE 4:  Although most people tend to be hands off, there is usually a handful of people who are more engaged.  They like investing and they watch things a little closer.

For these people, you can build your own portfolio.

SLIDE 5:  So, let’s start with Target Date Funds.

Target date funds are really designed to be hands off.  Theoretically, you can invest in a target date fund and never look at it until you retire.  The reason for this is the fund automatically rebalanced the portfolio from time to time but it also adjusts the asset allocation by making the portfolio more conservative, the closer you are to your retirement date.

SLIDE 6:  So investing in a target date fund is a piece of cake.  All you have to do is figure out the year you plan to retire and choose the appropriate target date fund that is closest to your retirement year.

For example, let’s say you are planning to retire in 2022, you would pick the 2020 fund or the 2025 fund.  It’s that simple.  Anyone can do that!

SLIDE 7:  Moving to the next group . . . For Asset Allocation funds, the investment you choose matches your personal risk profile and investment needs as opposed to your retirement date.  As a result, the funds are slightly more tailored to your personal and risk assessment.

SLIDE 8:  Investing in the asset allocation is still very simple.

The first step is to complete the Risk Profile Questionaire (370 downloads) .

Every company has their own version of these questionnaires and it really does not matter which on you use.

Once you finish answering the questions, the next step is to tally up your results.  And finally, you match the appropriate investment to your results. This is also pretty simple.

SLIDE 9:  Now for those that are inclined to build your own portfolios, you’ll have to move to the next video where I teach you a methodology or a framework to building and managing a portfolio.

Even if you are not a build your own type of person, watching the next video will give you invaluable knowledge about investing and if anything motivate you to engage in your portfolio more.  It’s easier than you might think.

SLIDE 10:  I hope you now understand that investing is not rocket science especially when it comes to investing in your group retirement plan.

If you still need help, we have a team of professionals that can help you.

 

Good luck!