Balancing risk and reward
Asset allocation is about balancing risk and reward. Market fluctuations can cause your portfolio to be skewed towards an allocation that takes too much or too little risk based on your objectives and how you allocated your contribution.
Automatic Asset Rebalancing (AAR) is an easy and automatic way to reset your portfolio to your original investment elections.
Example: You’re investing 25% of your contribution to Fund A, but it has grown to 35% of your portfolio. AAR will adjust your balance so that it once again represents 25% of your portfolio.
AAR saves you the time and hassle of manually reallocating your current balance every few months, and enforces a level of discipline to how you manage your account without you having to think about it.
The City is pleased to offer you this new ability to select your own rebalancing frequency so that your target allocations remain closer to what you intended. You can now elect to have your account rebalanced on an Annual, Semi Annual, Quarterly and Monthly basis. Here’s how:
- Log into your account on www.Philly457.com
- Click on "Manage My Funds"
- Scroll to the bottom of the page and select "Set Up Automatic Asset Rebalancing
- From the drop down box, choose the frequency you want to us
- Select "Activate AAR"
- Select your investment elections. You can choose to keep your current investment elections, or change them.
- Review your selections, then click the Submit button when you confirm they are correct
Investing involves risk including possible loss of principal. Actual investment results will vary depending on your investment and market experience, and there is no guarantee that fund objectives will be met.
Past performance does not indicate future performance.
Information provided by Retirement Specialists is for educational purposes only and is not intended as investment advice. Retirement Specialists are Registered Representatives of Nationwide Investment Services Corporation, member FINRA.