The investment funds in a group retirement and savings plan offer many benefits:

Convenience

When you’re a member of a group plan, you select investment funds rather than individual stocks and bonds. An investment fund is a collection of stocks, bonds or other investments called holdings. These holdings vary depending on the type of fund and its investment objective. It’s far easier for you to review and research one investment fund than each individual holding that makes up the fund.

Professional fund management

It takes time and know-how to carefully research holdings and package them into a strong fund. Most of us simply don’t have the time or expertise to do it right. Investment funds are assembled and monitored by seasoned investment managers.

Diversification

Investment funds in a group plan offer more diversity. For example, an individual investor with $1,000 might be able to buy a few shares in one or two companies, or maybe a bond. In a group plan, that same $1,000 could buy units in a variety of investment funds – each with holdings in a wide range of securities, industries and even countries.

You can start small

You don’t need a lot of money to start investing. The secret is to simply get started and make regular contributions to your plan.

Contribution flexibility

Many organizations offer contributions through payroll deductions or let you put lump-sum amounts in your plan.

Many levels of risk

Some investments may be low-risk, like money market funds, and others may be high-risk, like growth stock funds. This variety of investment options gives you the flexibility to make choices that best fit your investment personality.

Typically lower costs

Investment management fees and fund operating expenses for group plans are calculated using the combined power of the whole plan. This means these costs are typically lower when compared to retail funds for individual investors.

Things to think about

The choices are still yours. Doing your homework, choosing wisely, monitoring your progress, reworking your plan, raising contributions – in the end, your goal for a comfortable retirement is in your hands.