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Retirement Corner

Understanding Your Fund Options

The UTRetirement Programs have an abundance of funds to invest your voluntary UTSaver DCP and UTSaver TSA contributions in. All of the funds are in four major investment categories: Asset Allocation or LifeCycle Funds, Mutual Funds, Annuities, and the Self-Directed Brokerage Option.

Each of the six authorized providers has representatives who will sit down with you in a face-to-face meeting to discuss your investment options.

Asset Allocation or LifeCycle Funds

These funds are designed for investors who want a simple yet diversified approach to investing. They are professionally managed funds that automatically rebalance their assets according to their investment objectives. Lifecycle funds are rebalanced according to a target retirement date; asset allocation funds are rebalanced based on risk objectives. So, for example, if you wish to retire in 2020, you could select a 2020 Target Lifecycle fund which would automatically allocate your funds to maximize both investments and preservation.

Mutual Funds

A mutual fund is a type of investment that pools your money with many other investors who have similar investment goals. A professional money manager invests the money in stocks, bonds, and/or short-term investments. Each fund you select is managed with a goal of achieving certain objectives —including a certain balance of risk and potential return.


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.

Self-Directed Brokerage Option

In addition to Lifecycle, Mutual Fund and Annuity options, a self-directed brokerage account offers thousands of additional mutual funds not otherwise available under the UT System program. In the UTSaver DCP, individual securities are also available. The broad spectrum of investments makes it a good choice for more sophisticated investors with an understanding of how to research and evaluate individual investments. There are some restrictions and additional fees for this type of account, and it is not offered through every Provider. Contact your Provider directly for more information.

Don’t worry, help is available!

Provider representatives are always available to assist you in making the right investment choices for you.

To review the funds offered in the UTRetirement Programs visit

To schedule an appointment with a retirement provider representative in your area visit

As always, you can enroll in the voluntary UTSaver DCP or UTSaver TSA at anytime.

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