Contributions to the Unclassified Plan are automatically invested in a Target Retirement Date fund closest to your retirement year (the year you turn age 65). For example, if you will reach age 65 in 2022, the default investment option is the Target Retirement 2020 Fund.
You can leave your account balance in this fund or transfer it to any of the other funds offered by the plan.
How you build your investment portfolio depends on your goals, time horizon, and tolerance for risk. We understand that not everyone is a savvy investor with the knowledge or desire to choose their own investment mix. That’s why the Unclassified Plan offers two approaches to investing:
Simplify investing with a Target Retirement Fund
– OR –
Choose your own investment mix from the Supplemental Investment Funds offered by the Minnesota State Board of Investment (SBI)
A target date fund will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date (which is the assumed retirement date for an investor).
The date in a target date fund’s name represents an approximate date when an investor is expected to retire (which is assumed to be at age 65) and/or begins withdrawing money. The principal value of the funds is not guaranteed at any time, including the target date.
Asset allocation and balanced investment options and models are subject to the risks of the underlying funds, which can be a mix of stocks/stock funds and bonds/bond funds. For more information, see the prospectus and/or disclosure documents.