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Did You Know?
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September 29, 2009, Volume 56, No. 05

Did You Know?

“Did You Know” is a new monthly series that includes valuable tips to help you get the most out of the benefits and services offered by the Division of Human Resources.

Default Investment Funds for Retirement Plans

Whether your retirement is a long way off or just around the corner, it’s never too early or too late to start saving. While you may already be participating in one of Penn’s retirement plan options, have you also decided where you want your money invested?

Whether it simply slipped your mind or you were overwhelmed by the number of choices available, money put in a retirement account with no investment selection is placed in a default investment fund where it can begin earning interest. The appropriate combination of funds is selected based on your age and projected retirement date. They’ll automatically change over time as you get closer to retirement age, adjusting to an investment mix that should be more appropriate for your needs at different stages of life.

Penn’s default retirement accounts are the TIAA-CREF Lifecycle Fund and the Vanguard Target Retirement Fund.  If you’re participating with Vanguard, but didn’t elect any specific funds, your money will be invested in the Vanguard Target Fund. The TIAA-CREF Lifecycle Fund will be the default fund for everyone else. 

Keep in mind that you can change your investment selection at any time simply by contacting your investment provider. You’re encouraged to make the choices that are best for you when it comes to saving for your retirement. Personalized counseling and group information sessions are also available to help you make decisions about your own portfolio. Visit the retirement counseling website at www.hr.upenn.edu/Benefits/Retirement/RetirementCounseling.aspx to schedule an appointment. For more information on default investment funds, as well as additional retirement and financial planning resources, visit the Human Resources retirement website at www.hr.upenn.edu/Benefits/Retirement/defaultfunds.aspx.  You can also contact a representative at TIAA-CREF or Vanguard directly by phone or online:  

TIAA-CREF: 1-800-842-2010 or www.tiaa-cref.org/moc

Vanguard: 1-800-662-0106 (ext. 14500) or www.meetvanguard.com

 

Related: Penn Family Day Ticket Order Deadlines; National Work and Family Month

Almanac - September 29, 2009, Volume 56, No. 05