On October 1, 2007 NADA Retirement Administrators, Inc. (NADART) added Target Dated Funds managed by State Street Global Advisors (SSgA) to the Investment Choice funds line-up. These ten SSgA Target Retirement Strategies add a new dimension to NADART’s Investment Choice 401(k) plan.

Target Dated Funds are designed with a particular retirement year in mind. Each participant selects the fund whose target date is most closely associated with the year he or she expects to retire. Each fund is diversified with a mix of stocks and bonds that are allocated based on the expected retirement date. SSgA monitors the fund and reallocates the stocks and bonds mixture as needed over time. They work to maximize the participant’s investment return potential while keeping the risk at an appropriate level for each stage of life.

“These Target Dated Funds take the guesswork out of picking the right funds based on your retirement goals,” said Philip Holland, Vice-President and Plan Administrator for NADART. “Different life stages require a different investment strategy that involves picking the right selection of funds, monitoring their performance and rebalancing those funds. Many of our participants don’t have the time or inclination to do this. The Target Retirement Strategies makes it easy for them to choose a fund based on when they want to retire and then lets the fund managers do the rest of the work for them.”

Descriptions of each Target Dated fund can be found in the Target Dated Funds Sheets (pdf), a supplement to the Investment Choice enrollment booklet. Contact us at nadart@nada.org or (800) 462-3278 for more information.