Grow Your Savings Over Time With Mutual Fund Options.
Mutual funds can give you a head start on retirement. They help simplify investing by giving you options based on your personal goals. Mutual funds are run by professional money managers and offer varying levels of risk and reward. An Allstate personal financial representative
can help you understand the mutual fund options available to you, like:
- Money market funds: Designed to keep your money safe until you need it. Many use these as emergency accounts because it's easy to withdraw money, subject to conditions such as number of withdrawals allowed per month.
- Bond funds: This type of fund is designed to generate income and add stability to your mix of investments. Consider moving savings into bond funds as you near specific goals, like paying for college.
- Stock funds: Higher-risk investments for the long term. Typically invested in common stocks, they can be volatile in the short run but have bigger potential to grow your savings over time.
- Target date funds: A fund designed to take care of asset allocation and rebalancing for you with a specific retirement year in mind. Over time, the fund automatically rebalances to protect your savings as your target date nears.
Learning how mutual funds work can give you a better understanding of how they can meet your financial goals. The list below can give you a high-level look at the ways mutual funds can help you:
- Objective-based: Mutual funds represent a pool of investments—usually a combination of stocks, bonds and cash—managed by professionals based on growth, income or value objectives. You should consider your risk tolerance and time horizon when choosing a mutual fund.
- Risk: Low-risk and high-risk funds are available. Diversification between these types of funds is a strategy used to potentially minimize risk.
- Time horizons: Do you have varying goals with different time horizons? Mutual funds offer many options to meet both long- and short-term savings goals.
Talk to an Allstate personal financial representative to get answers about your mutual fund questions and to review your financial plan.