We often receive phone calls from ministers who want to discuss their Nazarene 403(b) Retirement Savings Plan accounts. A common comment is, “I’m not sure where to invest my money.” If you feel the same, don’t feel bad. The problem is common to most people.
While it’s important not to enter into investment choices lightly, few individuals, especially busy preachers, have time to research companies, study trends, or try to figure out how to divide investments between the many different mixes of stocks, bonds, or mutual funds.
For this reason, Fidelity Investments, the record keeper for the Nazarene 403(b) program, offers “Target Date” funds. Known as “Fidelity Freedom Funds”, these mutual funds make investing easier by taking away a lot of the guesswork.
These funds include years in their names, such as “Fidelity Freedom Index 2035 Fund.” The investor simply chooses the fund for the year (selections are in five-year increments) closest to when they plan to retire. As time draws closer to the designated year, investments adjust to a more conservative mix with generally less volatility.
“Investing with target date funds like Fidelity’s Freedom Funds allows participants to avoid worrying about when and how to invest their money or rebalancing their account,” according to P&B Director Kevin P. Gilmore. “About all that’s left to do is contribute. In fact, it might be the easiest investment choice a person will ever make.”
Pensions and Benefits creates 403(b) accounts for eligible U.S. Nazarene ministers. Those who have not selected specific funds are automatically enrolled in the Freedom Fund closest to the year they turn age 65.
For more information on Fidelity Freedom Funds or the Nazarene 403(b) Retirement Savings Plan, you may consult this resource, or you can have a personal one-on-one conversation with a Fidelity representative about your retirement by phoning 866-629-2736.
*Note: Investing involves risk, including the risk of loss.