UPS Teamsters Union 401K
Traditional asset allocation theory recommends investing in multiple asset classes of unrelated investment types, such as equities, bonds and cash. 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.
Matrix updated for 03/31/2012
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.
“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 Funds) to 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:
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.
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