QMS Enrollment - Web Book - Ready - Flipbook - Page 15
5.
NEXT STEPS
If you’re new to the plan:
Enroll and select your investments. Follow your plan’s instructions for enrolling and select a mix of
investments that closely matches your desired asset allocation.
If you’re a current participant:
1
Review your current situation. You should first
know how the money in your account is currently
allocated. Look at your existing fund balances and
figure out what percentage of your total is invested
in each asset class. (Your retirement savings plan
statement contains this information.) Compare
that asset allocation with your desired allocation.
Does it match? If not, proceed to step two.
2
Reallocate your existing fund balances. To arrive
at your new allocation, you will have to rearrange
your existing fund balances. If your balance is
relatively small or your current allocation is close
to your investment profile, this step may be
fairly easy: Simply follow your plan’s instructions for
transferring money from one option to another.
3
Move large sums gradually to avoid a bumpy ride.
If you need to shift a substantial sum of money,
you might consider moving it in stages instead of
transferring it all at once. By shifting your
money gradually, you may avoid exposing the
entire amount to extreme fluctuations that may
occur in the financial markets.
4
Adjust the allocations for upcoming contributions,
too. Changing the allocation of your existing fund
balances does not necessarily mean that your
future contributions will be allocated accordingly.
Don’t forget to change future allocations to
synchronize with your overall investment strategy.
For all participants, both new and current:
Make periodic adjustments to stay on course. Minor shifts in the stock market are common — and major
changes sometimes come quickly. These changes can throw your allocation off kilter. Suppose your plan
calls for 65% of your savings to be invested in stocks, but the market surges and raises your stock allocation
to 75%. One possible solution: Get back on track by rebalancing your account once a year to “correct” for the
market’s behavior.
It’s also a good idea to reassess your personal investment profile each year by retaking the quiz. That way
you’ll stay in the driver’s seat. Your long-term goals — and not the market’s short-term ups and downs — will
determine your investment course.
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