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Asset Allocation Strategy A Simple Solution to Investing

To help you keep your retirement goals on track, GoalMaker® periodically rebalances your account to ensure that it matches your chosen GoalMaker portfolio.

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Goalmaker makes it easy to stay on track

To help keep your retirement goals on track, GoalMaker periodically rebalances your account to ensure that it matches the allocations of your chosen GoalMaker model portfolio.1

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Asset allocation

Asset allocation is simply a term to describe how you divide your portfolio among a variety of asset classes, such as stocks, bonds and stable value.

Changing economic and financial market conditions affect asset classes differently. And since you don't know which asset class will perform well next year or the year after, having a variety of asset classes is a strategy designed to help you manage your investment risk.

Diversification

Diversification takes asset allocation a step further by spreading investment dollars across multiple options within each asset class. This helps even out the return of an asset class within a portfolio, even as individual investments move up and down over time.

Keep in mind that the application of asset allocation and diversification concepts doesn't assure a profit or protect against loss in a declining market. You can lose money by investing in securities.

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Managing risk

Although there is no solution to eliminate risk, asset allocation and diversification work together to help you manage the following risks:

  • Market risk, which refers to the possibility that an investor will lose money due to a decline in the price of his or her investments.
  • Inflation risk, which refers to the possibility that the growth of an investment may not keep pace with inflation.

The chart indicates the correlation between Risk and Return for a particular asset class. Asset classes have different levels of risk associated with them and as the level of risk increases, so does the potential of greater returns. The Stable Value asset class represented by the blue circle represents an asset class with very low risk. It also has the potential for the lowest about of return. On the other end of the chart, the Global/International Stock asset class, represented by the pink star, has the highest level of risk as well as the greatest potential for higher returns.

The following asset classes are listed in order of the level of risk and potential for greater returns from lowest to highest:

Stable Value is low risk and low potential return, it is the lowest item on the chart

Fixed Income is medium risk and medium potential, it is midway between high and low on the chart

Large-Cap Stock is high risk and high potential return, it is the fourth highest item on the chart

Mid-Cap Stock is high risk and high potential return, it is the third highest item on the chart

Small-Cap Stock is high risk and high potential return, it is the second highest item on the chart

Global and International stock is high risk and high potential return, it is the highest item on the chart

Choosing multiple asset classes through Asset Allocation and Diversification will spread out the risk across the portfolio. This is a simplified illustration of the relationship between investment risk and potential rate of return. There is no ensuring that higher risk investments will provide greater returns over time. Keep in mind that application of asset allocation and diversification concepts does not assure a profit or protect against loss in a declining market. You can still lose money by investing in securities.

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This is a simplified illustration of the relationship between investment risk and potential rate of return. There is no assurance that higher risk investments will provide greater returns over time. Past performance is not indicative of future performance.

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Set yourself up for a more successful retirement

GoalMaker is designed to help participants get on track—and stay on track—for a more successful retirement outcome. Get started with a few easy steps.

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Determine your investor style

Investor style can be defined as how comfortable you are with short-term swings in the market. We can help you determine if your investor style is conservative, moderate or aggressive.

Identify your model portfolio

Next, identify the appropriate model portfolio for you. See the GoalMaker brochure for details. It's important to note that you can select a new GoalMaker portfolio at any time.

Enroll in Goalmaker

Once you're ready to choose GoalMaker as your asset allocation program, it's easy to enroll. Log in and click on "GoalMaker" from the menu of options on the left.

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Need Help?

Call toll-free 877-PRU-2100 (877-778-2100)

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Unlock the power of the Wellness Effect

With workers shouldering increasing financial burdens and risk, offering a financial wellness program isn’t just the right thing to do, it’s also smart business.

See more about Financial Wellness 

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1. Not available for residents of New York.

for compliance use only 1022654-00001-00

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Disclaimer

Details on the backgrounds and qualifications of registered persons who conduct business with you can be found on the FINRA BrokerCheck website.

GoalMaker’s model allocations are based on generally accepted financial theories that take into account the historic returns of different asset classes. But, of course, past performance of any investment does not guarantee future results. Participants should consider their other assets, income and investments (e.g. equity in a home, Social Security benefits, individual retirement plan investments, etc.) in addition to their interest in the plan, to the extent those items are not taken into account in the model. Participants should also periodically reassess their GoalMaker investments to make sure their model portfolio continues to correspond to their changing attitudes and retirement time horizon.

Before investing in a mutual fund, consider the funds' investment objectives, risks, charges, and expenses. Please call 877-778-2100 for a prospectus or, if available, a summary prospectus containing this information. You should read the prospectus and the summary prospectus, if available, carefully before investing. It is possible to lose money when investing in securities.

Retirement counselors are registered representatives of Prudential Investment Management Services LLC (PIMS), Newark, NJ an SEC-registered broker dealer and Investment Advisor Representatives of Prudential Customer Solutions LLC (PCS), an SEC-registered investment advisor. Brokerage services and products are offered through PIMS, investment advisory products and services are offered through PCS.

Shares of the registered mutual funds and investment products offered to you through the SSIRA or Brokerage IRA accounts are provided through Prudential Investment Management Services LLC (PIMS), Newark, NJ. PIMS is a Prudential Financial company

You get tax deferral of your investment earnings through the qualified retirement plan in which you participate. Because you already enjoy this tax deferral, your decision to invest in an Individual Retirement Account or other variable annuity should be based on the annuity's investment and insurance features, such as the ability to annuitize and the death benefit.

Annuities are longer term investments intended for retirement savings. They contain fee, exclusions, limitations, reductions of benefits, and terms for keeping them in force.

The sale or liquidation of any stock, bond, IRA, certificate of deposit, mutual fund, annuity, or other asset to fund the purchase of this product may have tax consequences, early withdrawal penalties, or other costs or penalties as a result of the sale or liquidation. You or your agent may wish to solicit independent legal or financial advice before selling or liquidating any assets, and prior to the purchase of any life or annuity products being solicited, offered for sale, or sold.

Amounts withdrawn before age 59½ may be subject to a 10% federal income tax penalty, applicable taxes, and plan restrictions. Withdrawals are generally taxed at ordinary income tax rates.

The PruSecure Account is a group annuity product issued by The Prudential Insurance Company of America (PICA), Newark, NJ 07102. Amounts contributed to the contract are deposited in PICA's general account. Payment obligations and the fulfillment of any guarantees specified in the group annuity contract are insurance claims supported by the full faith and credit of PICA. PICA periodically resets the interest rate credited on contract balances, subject to a minimum rate specified in the group annuity contract. Past interest rates are not indicative of future rates. This product is neither a mutual fund nor a bank product. The obligations of PICA are not insured by the FDIC or any other federal governmental agency. Prudential Retirement is compensated in connection with this product when general account investment returns exceed the interest credited on contract balances. Other than such compensation, there are no additional charges imposed that reduce the interest rate credited.

For MT, NV, UT, Commonwealth of Puerto Rico, U.S. Virgin Islands, and Guam (conditional text):
An investment in the money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.

The Prudential SmartSolution IRA invests in proprietary and non-proprietary funds. Prudential Investments is a Prudential subsidiary and Prudential earns fees for managing these accounts. These fees are described in the prospectus for each fund.

Custodial services offered through Prudential Bank & Trust, FSB. Prudential Bank & Trust, FSB is a Prudential Financial company.

Nondeposit investment products are:
Not FDIC Insured
Not Bank Guaranteed
May Lose Value
Not Guaranteed by Any Government Agency
Not a Bank Deposit

This material is intended to provide information only. This material is not intended as advice or recommendation about investing or managing your retirement savings. By sharing this information, Prudential Retirement® is not acting as your fiduciary as defined by the Department of Labor or otherwise. If you need investment advice, please consult with a qualified professional.

Retirement products and services are provided by Prudential Retirement Insurance and Annuity Company, Hartford, CT, or its affiliates. (California COA # 1179).

Insurance products and services are offered by Prudential Retirement Insurance and Annuity Company, Hartford, CT or The Prudential Insurance Company of America, Newark, NJ. Each company is soley responsible for its financial conditions and contractual obligations.

Guarantees are based on the claims-paying ability of the issuing insurance company and are subject to certain limitations, terms, and conditions.

In providing this information, Prudential Retirement is not undertaking to provide impartial investment advice, or to give advice in a fiduciary capacity. Prudential Retirement may benefit from advisory and other fees paid to it or its affiliates for managing, selling, or settling of the Prudential mutual funds and other investment products or securities offered by Prudential Retirement or its affiliates. Investment vehicles sponsored or managed by a Prudential Retirement affiliate generate more revenue for the Prudential enterprise than non-proprietary investment vehicles. Prudential Retirement may benefit directly from the difference between investment earnings of Prudential Retirement's stable value funds and the amount credited to deposits in those funds. Prudential Retirement may also benefit from broker-dealer or other entities’ co-sponsorship of Prudential conferences.

Neither Prudential Financial, nor any of its representatives, are tax or legal advisors. You are encouraged to consult your individual legal or tax advisor with any specific questions.

© 2019 Prudential, the Prudential logo, the Rock symbol and Bring Your Challenges are service marks of Prudential Financial, Inc., and its related entities, registered in many jurisdictions worldwide.

 

For compliance use only: 1022653-00001-00

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