AIG Retirement


May 2008
SAVING : INVESTING : PLANNING
Keeping Your Balance Picture this: You've been diligently stashing money into four hypothetical funds (representing four different asset classes) that make up your portfolio. After a few years of average returns, one of the funds, Fund A, starts surging with high, double-digit returns, leaving funds B, C and D in the dust. Time to celebrate, right? Not so fast. The problem is, your portfolio has become overweight in one asset class. It's like a top-heavy sailboat — the next gust of wind could easily flip it over. This is what really hurt so many investors who jumped onto the tech stock rocket ship in the late 1990s. They ignored every other asset class and bet everything on tech stocks, which later became "tank" stocks. "Set it and forget it" may work for the chicken rotisserie you bought from that infomercial, but it's not a good investment strategy. Most investors know it's important to keep their portfolios balanced, but how to do it is often a different question. With GPS Portfolio Manager, AIG Retirement provides plan participants with an easier way to accomplish that important "balancing act." GPS Portfolio Manager is a managed account program that automatically implements a client's investment advice by allocating their assets to the appropriate, well-diversified portfolio for that client's unique financial circumstances. The program then provides ongoing asset management to maintain the asset allocation targets of the client's portfolio, performing periodic rebalances and reallocations, as necessary. In addition, advice for Portfolio Manager clients is regenerated automatically once per year. If updates in a client's circumstances result in changes to their investment advice, then any necessary adjustments to the client's asset allocations will be implemented automatically, and the client's portfolio will be managed to maintain the updated asset allocation targets. Participants can review and update their advice and client profile information with an AIG Retirement Registered Investment Advisor, or via the Internet. The advice and wealth forecast generated by GPS uses client information such as desired retirement age and income, current investments and other assets, and future income and expenses. Your financial advisor can provide complete information on this option — certainly a choice that plan participants will be happy to see.	In This Issue: Keeping Your Balance AIG Retirement Announces Compliance Developments 1Q 2008 Market Commentary Contact Us Archives