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 Don't
Bank Your Retirement
on Your Business
It's estimated
that more than 500,000, or 10 percent, of small businesses close their doors
each year.¹ Though the reasons for closing vary, for business owners it may
mean the difference between a comfortable retirement and just getting by.
Allocating too much of your retirement investments to one company — even your
own — is a risky proposition. If your business has not performed as well as
expected by the time you are ready to sell or leave, you may not be able to
retire in the manner in which you had hoped.
One way to help reduce the level of risk in your retirement portfolio is to
diversify your retirement assets. Mutual funds offer an easy and efficient way
to invest, and they offer many benefits.
Diversification
When you invest in a mutual fund, you become part owner of a
large investment portfolio made up of dozens or even hundreds of securities that
is invested to meet a specific objective. By pooling shareholders' money, a
mutual fund can invest in a more diversified portfolio than investors would be
able to achieve on their own.²
Professional Management
A professional money manager (or a team of managers) conducts research and
performs extensive analysis on various investment options to decide how to
invest the mutual fund portfolio. These investment professionals constantly
monitor their fund's investments and performance to ensure that they continue to
seek their stated objectives.
Variety
There are more than 8,000 mutual funds to choose from, with investment
objectives ranging from safety of principal to fixed income to aggressive
growth.³ Some mutual funds also let you choose among a variety of share
classes.
Liquidity and Convenience
Mutual funds are liquid investments that typically can be bought
and sold on any business day. Most fund companies also offer such services as
automatic investment plans and automatic reinvestment of dividends.
The investment return and principal value of mutual fund shares fluctuate
with market conditions. Shares, when sold, may be worth more or less than the
original amount invested. Mutual funds are sold only by prospectus. Please
consider the investment objectives, risks, charges, and expenses carefully
before investing. The prospectus, which contains this and other information
about the investment company, can be obtained from your financial professional.
Be sure to read the prospectus carefully before deciding whether to invest.
If you want to diversify your retirement assets, mutual funds may be an option
worth exploring. Call for more information on investing for retirement.
1) U.S.
Small Business Administration, 2004
2) Diversification does not guarantee against loss. It is a method used to help
manage investment risk.
3) 2004 Fact Book, Investment Company Institute, 2004
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