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Partnership Essentials: July 2018

GuidedTarget ModelsSM

VALIC introduces a flexible target date investment solution

VALIC understands that plan sponsors are busy, and many don’t have the background to help them feel comfortable about choosing investment options — including default investment options. But what if there were an investment solution designed to minimize plan sponsor uncertainty and simplify employee choices — all while using the plan sponsor’s existing fund lineup?

GuidedTarget Models is an investment solution designed to take the guesswork out of allocating assets for retirement investing that is…

  • Flexible — Automatically adjusts to match employee’s retirement date
  • Simple — It becomes the plan’s default option, created from the existing fund lineup
  • Professional — Professionally allocated and managed with ongoing adjustments to each model

GuidedTarget Models helps keep employee savings on track with professional investment strategies. The models gradually adjust their blend of investments for the life of the account. As a participant moves closer to their preferred retirement year, each model’s mix will naturally transition into more conservative investments — like fixed income — aiming for a blend of stocks, bonds and cash appropriate for the target year.

But why not use off-the-shelf target date funds?

Many well-known fund companies offer target date funds; however, the GuidedTarget Models from VALIC offers certain benefits, including...

  • Models include only funds that the plan sponsor is monitoring and that pass its investment policy statement (IPS)
  • Custom models can use a broader range of assets, such as stable value accounts and non-core or alternative funds
  • Flexibility of glide path options

Your QDIA (qualified default investment alternative)

While some plan participants embrace the opportunity to select and customize their own investment allocations, others find the prospect overwhelming—and they look to their plan sponsors and providers for help. That’s just one reason plan sponsors should consider using GuidedTarget Models as their QDIA.

It’s easy, efficient and it could save money for the plan sponsor. Want to know more? Read our GuidedTarget Models brochure.