Take the Guess Work Out of Investing for Retirement: 3 Reasons to Utilize Target Funds
Rev. Don Aldin, CRPC® is an ordained Teaching Elder in the Presbyterian Church of America and leads the Retirement Readiness Team at RBI.
My responsibilities at PCA Retirement & Benefits take me on the road and I often have the privilege of sharing a meal with friends in the places I visit. After saying hello and greeting one another, I’ll be asked: Where would you like to eat?
And without hesitation I always respond: What are some of your favorite places? I’ll pick from one of those.
The question “where would you like to eat?” is too open-ended for me. I don’t have enough information to make an informed choice. And so, I usually count on the recommendation of my friends.
For many of us, investing for retirement is like trying to figure out where to eat in an unfamiliar town. The topic is too big and we lack the knowledge and experience to answer it adequately. And just like answering the question of where to eat, it’s appropriate to narrow down our choices by selecting from recommendations presented by a trusted source.
PCA Target Funds are RBI’s recommendations about how we should invest for retirement. They are easy to use, they are the smart choice, and they take the anxiety out of making investment decisions.
1. They Are Easy to Use
With Target Funds, investors make only one investment decision. But that decision reflects a fund that is designed with you in mind. When you select Target Funds, your retirement assets are broadly invested in a diversified portfolio that is allocated and managed by professional investment managers. In addition, most funds are morally screened according to standards that reflect our shared Christian beliefs and convictions.
2. They Are the Smart Choice
Let’s face it, making our own investment choices from among an almost unlimited number and combination of funds requires specialized knowledge that most of us don’t have. Like all vocations, making investment choices demands a commitment to practice the craft of investing. But practicing that craft is not what God has called pastors to do. PCA Target Funds help pastors avoid the pitfalls of investing too conservatively (out of fear), chasing after quick returns (out of greed), or risking their investments by unwise efforts to time the market.
3. They Take the Anxiety Out of Making Investment Decisions
Once you’ve selected a PCA Target Fund, you can relax knowing your retirement funds are invested appropriately. Target Funds are designed to maximize market returns based on the risk that is appropriate for you, given the time until retirement. In other words, we adjust your fund to be more conservative as you get closer to your retirement age. Your retirement plan is on autopilot, and it will get you where you need to go—low anxiety.
PCA Target Funds enable you to focus your retirement planning energies where they need to be focused – on making contributions to the retirement plan so you (and your family) can live faithfully and generously according to God’s calling for your life during your retirement years.
When my friends ask where I’d like to eat, and I ask them for a recommendation, I trust they’ve evaluated the distance we’ll need to travel, the service we could expect to receive, the quality of the food prepared, and the appeal of the overall experience. I want to have a nice meal!
Likewise, we’ve designed the PCA Target Funds so you don’t need to know all that goes into to providing a set of appropriate investment portfolios for you to select. We want you to save well for retirement so that you can continue to do ministry, even after your paying call has ended.
If you have any questions about PCA Target Funds and why you should consider them, please contact us. We know you, we know how, and we care.
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