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How to Invest

Review your options | Get diversified | Determine your mix |  Choose investments  | Manage over time 

“It’s cherry picking time.”

Here’s the part where we actually choose investments. Notice, though, that I use the words “cherry picking.” This is to remind you to be selective. You need to stick to your asset allocation shopping list by only choosing types and amounts of investments that match your asset allocation model. Here’s another important point. Remember to diversify. For instance, if your model calls for 50% of your portfolio to be devoted to income, select several different income-oriented investments.



What to look for

• What’s the investment’s objective? Is it aiming to produce income, preserve capital, or produce growth?
• What are the investment’s holdings? What types of companies? What types of financial instruments? What parts of the world?
• What is the investment’s historical performance? Has its value increased or decreased over time? How has it performed compared to like investments and to indices, such as the S&P 500?




“Remember that stack of stuff you got on day one?”

Your first day on the job, you probably received all kinds of benefits information. Dig out the paperwork and look for your employer-sponsored plan prospectus. In there, you can find details about your plan’s investment choices.

 


© 2008 ING North America Insurance Corporation. All rights reserved.
Advisory services provided through ING Financial Advisers, LLC (member SIPC).
This information is not intended to be tax or legal advice. ING does not offer tax or legal advice. Consult your own legal or tax advisor regarding your specific situation.
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