Investing to Grow Your Retirement Savings

There are three practices that help put you on the right track for financial freedom in your future.

  1. Start early.
  2. Target 15 percent of your pay for retirement savings.
  3. Put your money to work by investing it.

Part of a complete lineup

While each of the above steps are equally important, understanding retirement plan investment options can be challenging. Purdue’s investment platform includes a range of investing options to serve the diverse needs of faculty and staff participating in the defined contribution programs offered. As part of a well-rounded lineup, a selection of managed mutual funds and a self-directed brokerage are included to suit participants who wish to actively manage their portfolio. While some prefer the hands-on approach when it comes to managing their retirement funds, the idea of investing can be intimidating for others. Target date funds and the option to employ the services of a professional management program allow peace of mind for those who prefer to be less involved with monitoring their accounts.

S=Self Directed Brokerage, C=Core Fund Lineup, T=Target Date, M=Managed Account

S Self-directed brokerage: Self-directed brokerage may be appropriate for those who are experienced, confident and prefer to invest outside the plan’s core lineup.

C-Core Funded LineupCore fund lineup: A mix of fixed-income, domestic, international and specialty funds may be appropriate for participants who prefer to create their own asset allocation strategy from a limited set of options.

Target Date FundsTarget date funds: Appropriate for those who prefer a more hands-off approach to their portfolio and have relatively basic needs, including many young investors.

Managed AccountManaged account: Appropriate for “do it for me” investors with more complicated needs, including a spouse’s assets, multiple retirement accounts or a Defined Benefit plan.

If you need help deciding where and how to make the best of the dollars you are accumulating for retirement, perhaps you could consider one of the following:

Use a Target Date Fund

No time? No confidence? Not your area of interest? Target date funds (TDFs) and managed accounts are part of the investment line-up available to you.

Target date funds offer one-stop shopping for busy folks whose focus may not be on monitoring the investment world. The concept is simple: just select the target date fund with a date that is close to the time you expect to retire. As you continue to accumulate retirement savings, your dollars are invested so that your money works for you until you need it. Those investing in TDF generally do best when they concentrate their savings in just the target date fund since the investments are diversified and are kept in an appropriate balance of stocks and bonds based on the number of years before money needed for retirement.

All Purdue retirement plan participants have access to target date funds and are the default option for those who do not actively choose their investment options within the Fidelity retirement plan programs. Public Employee Retirement Fund (PERF) participants have the option to invest their Annuity Savings Account in target date funds through INPRS.

Enlist Fidelity to Help Manage Your Account:
Portfolio Advisory Service at Work

Another option for those who just don’t have the time and/or expertise to actively manage their own workplace savings accounts is the Portfolio Advisory Service at Work (PASW) service. PASw is a type of “managed account” offered to help participants in the Purdue Standard or Matching Retirement and Savings Plans maintain an appropriate asset allocation mix based on personal factors, such as investment temperament, financial position and retirement horizon. Using Purdue’s lineup of investment options, a team of professionals actively manage and rebalance your model portfolio. For those who choose to take advantage of this service, a modest fee applies.

If you would like to learn more about engaging a team of professionals to manage your portfolio that takes into account your own personal situation, please check out PASw by calling 866-811-6041 or visiting www.fidelity.com/pas.

Authorize Your Own Financial Advisor to Help Manage Your Account:

You may have already developed a relationship with a financial planner and have entrusted them with other financial information. To authorize another person to access your retirement account information on the Fidelity platform, complete and return this form to Fidelity.

Although other organizations may be advertising retirement services and calling or emailing our employees, Purdue does not have business relationships with, nor does it endorse, other financial advisors.

Self-Directed Brokerage Link:

For participants of either the Purdue Standard or Matching Retirement and Savings Plans, a “platform” of funds is offered to give a range of high performance, low cost investment options. Some participants prefer an expanded array of funds beyond the standard offerings. This is where the Fidelity BrokerageLink comes in and meets the need for more experienced investors.

The BrokerageLink offers a wide range of mutual funds across a variety of companies with different fee structures. This type of account is appropriate only for those with expertise and experience that allows them to feel comfortable managing the risk of selecting and monitoring the portion of their portfolio invested through the BrokerageLink. Note that there are investment products that retirement plan regulations have identified as unsuitable for retirement savings, and these are not available through the BrokerageLink, such as securities, bonds, exchange traded funds (ETFs) and commodities (not a complete list).

Purdue’s dedicated Fidelity office appointments

If you have questions – whether they’re about target date funds, Portfolio Advisory Service at Work, or anything else related to your retirement plan – Fidelity’s retirement planners are ready to help you find answers. You can schedule a one-on-one appointment at Fidelity’s office in the Purdue Memorial Union; just go to Fidelity's Purdue-dedicated website at http://netbenefits.com/purdue and click "Contact Us" and then "Meet".

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