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Retirement Corner

Retirement Fund Selection Made Easier

Selecting funds for your retirement plan(s) can be overwhelming. Effective June 15, 2008, the Fund Performance Summary at http://www.utretirement.utsystem.edu/FundPerformance.html will have a new search feature that will make the process easier. You will be able to search for funds by one of the four tier structures.

Tier 1: Asset allocation or lifecycle options

These funds are designed for investors who want a simple yet diversified approach to investing. They are professionally managed funds that automatically rebalance according to their investment objective. Lifecycle funds are rebalanced according to a target retirement date; asset allocation funds are rebalanced based on risk objectives.

Tier 2: Core investment options

This tier includes a limited menu of investments that represent mutual funds primarily invested in the three major asset classes—stocks, bonds, and short-term investments. You may want to consider these options if you are comfortable diversifying your investments on your own or with the assistance of an investment or financial advisor and/or asset allocation tools.

Tier 3: Expanded Options

This tier includes a much larger menu of additional investment options for more sophisticated investors. You may want to consider this approach if you are very comfortable managing your own portfolio or have an investment or financial advisor managing your portfolio, and understand how to research, evaluate and monitor a wide variety of investments with different risk and return characteristics.

Tier 4: Annuity Options

Some Providers also offer fixed and/or variable annuity products. An annuity is a contract with an insurance company enabling you to accumulate contributions in a separate account, under which you can select from a variety of investment options including mutual funds and guaranteed fixed interest accounts. An annuity also provides the option for you to receive a regular series of income payments for a specified period or for life in return for your contributions.

Additionally, the Tier 4 funds will be searchable by either Fixed or Variable annuities and will be labeled as such in the Ticker Symbol field within the report.

Take advantage of the incredible fund lineup available to you as a UT System employee, and sign up for a UTSaver voluntary retirement plan today.

For more information go to the UT System Retirement Programs Website: www.utretirement.utsystem.edu

Contact Us

If you would like a specific topic discussed or have a question you would like answered in a future issue of this newsletter, please send your suggestions to benefits@utsystem.edu.

UT System Employee Benefits Website: www.utsystem.edu/benefits/
UT System Retirement Programs Website: www.utretirement.utsystem.edu
Your Local Benefits Office: www.utsystem.edu/benefits/contacts.asp#1