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Dianne Williams Wildt, MBA
Certified Retirement Counselor®
Since 1983 in the financial services and investment industry
Retirement Pathways, Inc.
4500 Bowling Blvd., Suite 100
Louisville, KY 40207
Phone: 502-797-1258
Email: dianne@retirementpathways.com
Website: www.retirementpathways.com
September/October 2017
Let's talk investing Q&A
Q
Some of my coworkers have been talking about investing in balanced funds. What are they, and what are some of the benefits and disadvantages of investing in them?
A
Balanced funds typically combine stocks, bonds, and, occasionally, short-term debt securities in a single portfolio. The stock component offers the ability to participate in the market along with a potential for returns that generally outpace inflation, while the fixed-income component seeks to reduce volatility and provides an income stream. Although a fund may hold a larger proportion of one asset class over the other, investments usually must remain within a set minimum and maximum.
With their mix of stocks and bonds, balanced funds tend to be well diversified. And because balanced funds are generally less volatile than funds that hold only stocks, investors may be more likely to resist selling when stock prices are falling. However, the fund’s bond component may limit returns during a stock market run.
Investors who are approaching retirement or who have a lower tolerance for risk may be interested in considering balanced funds. Your financial professional can help you assess whether a balanced fund would be a suitable investment for you.
Because mutual fund values fluctuate, redeemed shares may be worth more or less than their original value. Past performance won’t guarantee future results. An investment in mutual funds may result in the loss of principal.
Mutual funds involve risk and are offered by prospectus (and summary prospectus, if available), which you can get from your registered representative. Carefully consider investment objectives, risks, charges and expenses of the investment company before investing.
The prospectus will include this and other information; read it carefully before investing. Investing involves risks, and there is no guarantee that any one strategy — including diversification — ensures a profit or protects against a loss in a declining market. You should consult with your financial professional regarding your particular situation.
FINRA Reference FR2017-0427-0092/E 08/02/17
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Investment advisory services offered through American Capital Management, Inc., a State Registered Investment Advisor. Retirement Pathways, Inc. is independent of American Capital Management, Inc.
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