Staff Retirement Plan Benefits
Where can I invest?
Each investment company offered by Plan C gives you the choice of investing in stock mutual funds, bond mutual funds, short-term reserve funds (money market accounts), and balanced mutual funds (made up of stocks, bonds, and short-term reserves). In addition, you have annuity funds available from TIAA-CREF. Each investment has a different level of risk and a different opportunity to earn money. Some investments are riskier than others. The more risk you are willing to take, the better the chance for reward (higher returns on yur investment). For more information about any of the funds categorized in the table below, please contact the respective investment company.
| Risk Tolerance and Investment Strategies | TIAA-CREF | Vanguard |
|---|---|---|
Conservative. |
TIAA Traditional Annuity CREF Money Market CREF Inflation-linked Bond |
Prime Money Market Short-term Corporate Short-term Treasury |
| Moderate. Accepts a somewhat lesser return to minimize your financial risk. |
CREF Bond Market | Wellesley Income Asset Allocation Equity Income Wellington |
| Moderate to aggressive. Earns greater potential returns over a longer period of time. Risks the typical ups and downs of stock and bond funds. |
CREF Social Choice CREF Real Estate CREF Stock |
500 Index Growth Index U.S. Growth Windsor II |
| Aggressive. Trades a high degree of risk for the potential of high returns. |
CREF Global Equities CREF Equity Index CREF Growth |
Explorer Mid-CAP PRIMECAP Total International Stock Index |
| Balanced funds. Maintains your selection of funds. |
CREF Social Choice | Lifestrategy Income Lifestrategy Conservative Growth Lifestrategy Moderate Growth Lifestrategy Growth |
| Social conscience funds. Gives consideration to certain social and political criteria. |
CREF Social Choice | N/A |
Before you make investment decisions, be sure to review all the information provided by each fund manager. You may also want to discuss your investment decisions with your financial advisor.
Investment Key
Four basic types of investments that make up your investment options and the potential risks and rewards offered by each:
- Stocks
represent ownership of a small piece of a corporation. A stock becomes more valuable through an increase in its value or market price. Also many stocks pay dividends. The value of a stock can change every day for many different reasons. It can be affected by the economy, the stock market, or how well the company is performing. But over long periods of time, stocks have historically given investors higher returns than bonds or short-term reserves.
- Bonds
are loans you make to a company, the government, or a government agency. The bond issuer agrees to pay back the loan with interest within a certain period of time. Some examples are U.S. Treasury bonds, corporate bonds, and U.S. government agency bonds. Bonds are not as risky as stocks, but they carry some risk too. There are many factors that can affect the value of a bond. For example, the price of a bond moves in the opposite direction of interest rates. When interest rates rise, the value of your bond goes down. When interest rates fall, the value of your bond goes up. Also, there is the risk that the issuer of the bond could default on the loan.
- Short-term Reserves
are short-term investments issued by banks, the government, or insurance companies, which seek to preserve the original amount that you invest while providing income. Short-term reserves are considered to be a very conservative investment. Over the long term, however investments have produced lower returns than investments in stocks and bonds. And most of the investment returns from short-term reserves can be eaten away by inflation, or the rise in the cost of living, over longer periods of time.
- Annuities
guarantee your principal as well as a specified minimum interest rate. In addition, an annuity fund can grow through dividend returns. Annuity funds are the move conservative investment choice. However, like short-term reserve, returns from annuity funds can be eaten away by inflation, or the rise in the cost of living over longer periods of time.
