Planning Your Financial Future

Investment Strategy

Planning Your Financial Future

Have an Investment Strategy – and review it from time to time

Whether you want to manage your own investments or want to take a hands off approach, TIP gives you the flexibility to choose from many investment options. But how do you know which options are right for you?

The best way to start is to develop a personal investment strategy that reflects your own needs and circumstances. For example, if you're 45 years old and have approximately 20 years to go before you retire, you may have a more aggressive investment strategy than someone who's 60 years old and planning to retire in five years. Over time, your investment strategy should change, just as your needs and circumstances do.

As important as it is, creating an investment strategy that's appropriate for your needs and goals doesn't have to be complicated. Simply remember that investing is an a.r.t.—asset classes, risk, and time.

Asset classes are three general types of investments— stocks, bonds, and short-term investments. TIP offers a range of investment options, including mutual funds (which can encompass one or more of the three asset classes). Your strategy will help guide just how much of your money is invested in each asset class.

Risk in investment matters is usually thought of as investment risk—the chance that you might lose money on your investments. But you have to balance investment risk with inflation risk—the chance that your investments will not earn enough to keep pace with the rising cost of living. Your strategy will be based in part on how comfortable you are with the risk involved in various types of investments.

Time is a powerful ally of any investor. Not only will investments generally increase over time through the power of compounding, but time can also help you ride out the inevitable ups and downs of the financial markets. Your investment strategy will depend heavily on just how much time you have until you'll need your money.

Learn more

Want Help?

Call a Fidelity Workplace Planning and Guidance Consultant at 1-888-234-7300 from 8:30 am - 8:00 pm EST to review your goals and progress – and identify next steps you can take today – to help ensure that you are on track for your retirement.

If you prefer, you can instant message a representative on the NetBenefits site.

Related Topics & Resources

  • Fidelity's NetBenefits. Find interesting and helpful information on how to save for your future needs in the e-Learning catalog, on demand pre-recorded sessions for various 401(k) topics and live webinar workshops.
  • Evaluate your investment portfolio by going to NetBenefits for information on fund performance and for tools to help you choose the funds that are best for you.
  • Health Savings Account as a Retirement Tool? Did you know that the money in your HSA can be used to pay for qualified medical expenses during retirement? You never lose your money – your unused balance keeps rolling over from year to year, whether you leave ADI or leave the plan. You get the triple tax advantage of tax-free savings, tax-free earnings, and tax-free withdrawals as long as you use your HSA money to pay for eligible health care expenses.