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ADV Part 2

 

 

 

Investor Resources Inc, Investment Advisory Service, Port Orchard, WA

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UPS Teamsters Union 401K

All investment options are diversified privately managed funds. Exchange traded Funds have been used as representative of the private fund objectives. Retirement plan information has been obtained from UPS employees.
 
Updates are now available on a daily basis. To get a current matrix, click here.
 
Matrix updated for 10/01/2012   
 

Rank

Symbol

Description

Asset Class

1

IYR

iShares Dow Jones U.S. Real Estate Index

Real Estate

2

IJH

iShares S&P MidCap 400 Index Fund

Mid Cap Blend

3

IWM

iShares Russell 2000 Index Fund

Small Cap Blend

4

IVV

iShares S&P 500 Index

Large Cap Growth

5

AOM

iShares S&P Moderate Allocation Fund ETF

Balanced

6

AGG

iShares Barclays Aggregate Bond Fund

Quality Bond

7

EFA

iShares MSCI EAFE Index Fund

Foreign Large Growth

8

SHV

iShares Barclays Short Treasury Bond Fund

Government Bond

9

MNYMKT

Money Market Proxy - 13 Week T-Bill

Stable Value

 
  • Money Managers Around The World Are Giving Up On Time-Tested Investment Strategies

    "Here are some of the US survey results (emphasis by Business Insider):

    • The majority (64%) of U.S. institutional investors say that traditional diversification and portfolio construction techniques need to be replaced.
    •  
    • Seven in ten (72%) say that conventional 60/40 portfolios no longer are the best way to pursue returns."

 

Traditional asset allocation theory recommends investing in multiple asset classes of unrelated investment types, such as equitiesbonds and cash. Typical asset allocation models are presented here for your reference. Caution: These models are based on the same process that the Business Insider article refers to as inadequate. The Relative Strength ranking above is a different process for managing diversification. That is why we use it as a guide for selecting which funds to favor and which asset classes to emphasize.

Use your own perception of your risk tolerance, other assets and income sources and your proximity to retirement to select an allocation that is appropriate for your circumstances. Typical asset allocation models are presented here for your reference:

                                                     Aggressive               Moderate            Conservative
  
CAUTION: USE "PIE CHART ALLOCATION" AT YOUR OWN RISK. THE PROCESS IS NOT DESIGNED TO PROTECT YOU FROM DOWNSIDE MARKET RISK. IT IS THE WAY 401K PORTFOLIOS ARE TRADITIONALLY CONSTRUCTED. KEEP READING FOR A BETTER UNDERSTANDING.
 
Whenever a plan does not provide a money market or stable value choice for use, the shortest term fixed income option is the recommended alternative. Fundamentally, we do not recommend investing in assets ranked below money market. Preserve your cash until the assets once again establish a positive bias in their returns and prices.
 
Our asset allocation process can be viewed from here.
Our current asset allocation model can be viewed from here.
 
“We’ve been on a roller coaster ride in the financial system and the economy over the last 25 years. It’s going to continue. Now, it’s going to be a roller coaster on steroids. Things can go wrong like it did…May 6th…in the US stock market. ...People need tools to navigate through this. Buy-and-Hold is gone as a basic investment philosophy. You have to watch the financial flows and take some money off the table when liquidity starts to go the other way.” - J.A. Boeckh
  
Significant insights were revealed in January 2010 by one of the leading proponents of index investing and an icon of the academic community – Ibbotson Associates’ president, Peng Chen. In an interview with Morningstar discussing Modern Portfolio Theory and its dismal 2008 performance in protecting accounts, Mr. Chen said:
  
             “…we also realized that one of the traditional measures in modern portfolio theory, in particular on the risk side, standard deviation, does not work very well…”
 
Your choices are limited to the investments approved by your plan trustees. We believe the asset listing was obtained from reliable sources. If there is an update to the available investment listing, please contact us at 800-317-9119 or Info@InvestorResourcesInc.com.
 
United Parcel 401k investment accounts are privately managed and not available to the public. We have used publicly traded investment options (Exchange Traded Fundsto rank recent market performance which may not be an exact clone of the investment options available to employees. We believe the investments used for ranking purposes are sufficiently similar to the investment objectives of the employees' options to be reliable for the stated purpose.
 
Some investment options are diversified privately managed funds. Exchange Traded Funds believed to represent the investment objectives of the private funds have been used to calculate rankings. Investment choice information has been provided by United Parcel employees.
 
Click Here  to see how asset rankings have rotated through previous quarters and exposure to the 2008 market melt-down could have been avoided.
 

DISCLAIMER:
This information is provided by Investor Resources, Inc. , a registered investment advisor, and is believed to be from reliable sources, but no guarantee is made as to accuracy or completeness. The investment securities and strategies discussed are not necessarily suitable for all investors. Recommendations are of a general nature, not based on knowledge of any individual's specific needs or circumstances, and there is no intent to provide individual investment advisory, supervisory or management services. Investor Resources, Inc. is not an authorized representative of United Parcel Service or of its retirement plans.
 

Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client or prospective client’s investment portfolio. Historical performance results for investment indices and/or categories generally do not reflect the deduction of transaction and/or custodial charges, the deduction of an investment management fee, nor the impact of taxes, the incurrence of which would have the effect of decreasing historical performance results .