![]() ![]() Source: Hartford Funds and Morningstar, 2/22. Since 2012, an average of 82% of the highest performing stocks worldwide have been based outside of the US.įigure 1: Even today, the US isn’t necessarily the best Percentage of world’s top 50 stocks that are non-US To help investors remain invested during periods of volatility, extend to them diversification options among strategies that could be poised to outperform, especially those with a history of delivering consistent returns to potentially mitigate volatility and smooth the ride.Īctively managed international stock strategies could present one such solution. Cash on the sidelines does not contribute to asset growth and negatively impacts retirement savings over time. The 2022 Schroders US Retirement Survey reveals that plan participants keep over 23% of their assets in cash on average as of late February 2022, when Schroders received the feedback of 1,000 US investors. They may even reduce DC contributions due to fear of uncertainty. Unfortunately, volatility can often shake investor confidence, driving participants to sell at the wrong time and wait too long before jumping back in. It’s critical that plan participants understand the long-term growth benefits of investing in the equity markets and the power of staying invested. The accumulation phase mandate is clear: grow assets. By providing defined contribution (DC) plans, many offering auto-enrollment and auto-escalation features, plan sponsors endow their employees with what may be their only opportunity to save enough for their golden years.īut plan sponsors can do so much more for employees by reimagining their approach to three areas shaping DC plan design: accumulation, decumulation/retirement income and purpose. Ascensus and Total Benefits Communications are not affiliated with Vanguard Marketing Corporation, The Vanguard Group, Inc., or any of its affiliates.Īscensus is a registered trademark of Ascensus, Inc.Employers are in a unique position to significantly improve the quality of life their employees enjoy in retirement. VGI has entered into an agreement with Ascensus, Inc., to provide certain plan recordkeeping and administrative services on its behalf. Retirement plan recordkeeping and administrative services are provided by The Vanguard Group, Inc. The collective trust mandates are managed by Vanguard Fiduciary Trust Company, a wholly owned subsidiary of The Vanguard Group, Inc. Investment objectives, risks, charges, expenses, and other important information should be considered carefully before investing. They are collective trusts available only to tax-qualified plans and their eligible participants. Vanguard Target Retirement Trusts are not mutual funds. Regularly check the asset mix of the option you choose to ensure it is appropriate for your current situation. The asset allocations Vanguard has selected for the Target Retirement Funds are based on our investment experience and are geared to the average investor. Vanguard is responsible only for selecting the underlying funds and periodically rebalancing the holdings of target-date investments. An investment in a Target Retirement Trust or Fund is not guaranteed at any time, including on or after the target date. The Income Trust/Fund and the Income and Growth Trust have fixed investment allocations and are designed for investors who are already retired. ![]() The trust or fund will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date. The year in the trust or fund name refers to the approximate year (the target date) when an investor in the trust or fund would retire and leave the workforce. Investments in Target Retirement Trusts and Funds are subject to the risks of their underlying funds. Diversification does not ensure a profit or protect against a loss. All investing is subject to risk, including the possible loss of the money you invest. ![]()
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