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Member Benefits’ investment options quick reference

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Brenda EcheverriaIn our August 3, 2015 article, “What’s your investment style?” we illustrated that how you decide to invest should be based on what kind of investor you are. Once you know your investor style and understand your risk tolerance, you can make more informed choices about your specific investments. Details are in the article, but read on for a quick summary of our investment options.

Model portfolios*

A pre-defined portfolio based on your age, risk tolerance, and your retirement timeline.

Features and facts include:

  • Small investment of time and low maintenance.
  • No additional fees to invest in a model portfolio.
  • Auto-rebalances each year so your investment mix aligns with your investment goals.
  • Risk Profile Assessment required every three years.

NOTE: This is a managed fund option. You cannot mix a model portfolio with other investments in our fund line up.

Target Retirement Funds

A one-decision investment option.

  • Choose the fund nearest your retirement or withdrawal date.

Target Retirement Funds are managed funds that automatically rebalance each year and become more conservative as you near retirement.

Do-it-yourself

A hands-on approach. You are in charge.

  • Select and monitor your investments.
  • Rebalance your allocations as needed for fund growth or life changes.

Give us a call if you have questions or would like any assistance at 1-800-279-4030.

Brenda Echeverria, Financial Planner

This article is for informational purposes only and is not intended to constitute legal, financial, or tax advice. Certain recommendations or guidelines may not be appropriate for everyone. Consult your personal advisor or attorney for advice specific to your unique circumstances before taking action.

The 403(b) retirement program is offered by the WEA TSA Trust. TSA program registered representatives are licensed through WEA Investment Services, Inc., member FINRA. The Trustee Custodian for the WEAC IRA accounts is Newport Trust Company.

Keep in mind that mutual fund investments are not guaranteed and may gain or lose value. 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.

*Model Performance
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.

Reassess Your Investment Needs Regularly
Because your needs, goals, portfolio, and situation may change over time, be sure to reevaluate 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).