If you are choose the model portfolio, you will complete the Risk Profile Questionnaire as part of the enrollment process. Your investments will be chosen for you.
If you choose hands-on investing, you can use the results from the Risk Profile Questionnaire to aid you in completing the Investment Worksheet (appears after you complete the risk profile).
The sample risk/allocation portfolio strategies that follow show you suggested allocation mixes.
Risk tolerance spectrum
The risk tolerance spectrum demonstrates the wide spectrum of risk levels among asset classes. Before you consider any investment, you need to understand risk and determine your personal risk tolerance.
This is for illustrative purposes only and not indicative of any investment. Past performance is no guarantee for future results. Future performance may be lower or higher than past performance.
Sample risk/allocation portfolio strategies
Please note that while you may choose any of these allocations, you are not limited only to them.
Keep in mind that mutual fund investments are not guaranteed and may gain or lose value. To the extent you elect to invest in mutual funds as opposed to the Prudential Guaranteed Investment, you increase your risk and potential for loss. Past performance is no guarantee for future results. Future performance may be lower or higher than past performance.
Before investing in any mutual fund, call WEA Member Benefits at 1-800-279-4030 to request a prospectus. We advise you to read it carefully and consider the fund’s investment objectives, risks and charges and expenses carefully before investing. The prospectus contains this and other information about the investment company.
The reported performance of the models is hypothetical yet based on actual performance of the underlying mutual funds and their corresponding weightings. The performance data on the underlying funds was derived from Morningstar®, an independent third party. The illustration does not reflect the actual performance of individual investors in the models. Investment models are not FDIC-insured, and they are not bank-guaranteed. Investment models may lose value. Past performance is no guarantee of future results. Model performance returns illustrate the relationship between risk and reward. The WEA Member Benefits model portfolios are risk-based. The more conservative the underlying asset weightings are, the lower the expected rate of return. Because of market changes, the makeup of your actual account portfolio will not exactly match the model portfolio. We may perform periodic adjustments of the model portfolio investments and rebalancing of your account to more closely match the model portfolio you select.
Model portfolios are developed by WEA Financial Advisors, Inc., (WEA FA) under the oversight of the WEA Member Benefits Investment Committee. Model portfolios may be adjusted at the discretion of WEA FA and the Investment Committee with prior notice to you. From time-to-time there may be extraordinary situations that will warrant more scrutiny when making adjustments. An example is the market downturn in October 2008. Although WEA FA carefully evaluates the makeup of the portfolios on a regular basis, we make no representation regarding the likelihood or probability that any or all of the portfolios will in fact achieve a particular investment goal or fulfill the risk tolerance profile as described for each portfolio. As a self-directed investor, you should carefully consider the merit and appropriateness of the available investments under your district's retirement plan in light of your own personal financial circumstances, including your other assets, income, investments, and/or cash flow needs.
Re-Assess Your Investment Needs Regularly
Because your needs, goals, portfolio, and situation may change over time, be sure to re-evaluate your investment strategy at least once a year. You can always choose a different model or create your own mix. Redemption fees may apply. When participating in a WEA Member Benefits model portfolio, you must complete the Risk Profile Questionnaire every three years. You may not continue to use the model portfolio option if you do not timely complete a Risk Profile Questionnaire. In such an event, and if we receive no other instruction from you, your plan assets will be moved to your plan's QDIA (qualified default investment alternative).
Follow this link for important 403(b) disclosures.