ARROW EXTERMINATORS, INC. 401(K) PLAN
Invest in ARROW EXTERMINATORS, INC. 401(K) PLAN
When it comes to invest in ARROW EXTERMINATORS, INC. 401(K) PLAN
- Understand Your Goals and Risk Tolerance: Consider your retirement goals, time horizon, and risk tolerance when choosing investments. Are you saving for retirement, or do you have other financial goals in mind? How comfortable are you with market fluctuations?
- Diversification: Diversification is key to managing risk in your investment portfolio. Spread your investments across different asset classes (e.g., stocks, bonds, cash equivalents) and sectors to reduce the impact of market volatility.
- Asset Allocation: Determine the appropriate mix of assets for your investment portfolio based on your goals and risk tolerance. This may involve allocating a percentage of your portfolio to stocks, bonds, and cash equivalents.
- Review Investment Options: Evaluate the investment options available within ARROW EXTERMINATORS, INC. 401(K) PLAN (see below for more detailed investment options). Look for funds with low fees, consistent performance, and a track record of meeting their investment objectives.
- Consider Target-Date Funds: Target-date funds are a popular option for retirement savings because they automatically adjust the asset allocation over time based on your expected retirement date. These funds can be a convenient option for investors who prefer a hands-off approach to investing.
- Monitor and Rebalance: Periodically review your investment portfolio and make adjustments as needed. Rebalance your portfolio to maintain your desired asset allocation and ensure it remains aligned with your goals and risk tolerance.
- Seek Professional Advice: If you’re unsure about which investments to choose or how to allocate your assets, consider seeking advice from a financial advisor. They can help you develop an investment strategy tailored to your individual needs and circumstances.
By following these steps, you can set up a 401(k) plan and choose investments that align with your long-term financial goals and objectives. Remember that investing involves risk, and it’s important to carefully consider your options and seek professional advice if needed.
Investment Options
ARROW EXTERMINATORS, INC. 401(K) PLAN provides a list of funds (mutual funds and collective investment trusts — custom-made mutual funds for the plan):
| Investment Options of ARROW EXTERMINATORS, INC. 401(K) PLAN (as of 2022) |
|---|
| TEMPLETON GLOBAL BOND RET ACCT (TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY) |
| INVESCO CONVERTIBLE SECURITIES RET (TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY) |
| BNY MELLON OPPORTUNISTIC MIDCAP VAL (TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY) |
| DWS RREEF REAL ESTATE SECURITIES RE (TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY) |
| LOOMIS SAYLES BOND RET ACCT (TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY) |
| JPMORGAN EXTENDED DURATION RET ACCT (TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY) |
| DFA U.S. TARGETED VALUE PORTFOLIO R (TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY) |
| DFA INFLATION-PROTECTED SECURITIES (TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY) |
| INVESCO DIVERSIFIED DIVIDEND RET AC (TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY) |
| INVESCO SMALL CAP EQUITY RET ACCT (TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY) |
| PIMCO INCOME RET ACCT (TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY) |
| AMERICAN FUNDS NEW PERSPECTIVE RET (TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY) |
| AEGON BALANCED RET ACCT (TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY) |
| AMERICAN FUNDS NEW WORLD RET ACCT (TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY) |
| JANUS HENDERSON TRITON RET ACCT (TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY) |
| BLACKROCK HEALTH SCIENCES OPS RET A (TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY) |
| INVESCO INTERNATIONAL SMALL-MID COM (TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY) |
| EATON VANCE ATLANTA CAP SMID-CAP RE (TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY) |
| VICTORY SYCAMORE ESTABLISHED VALUE (TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY) |
| COLUMBIA CONTRARIAN CORE RET ACCT (TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY) |
| T. ROWE PRICE GROWTH STOCK RET ACCT (TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY) |
| TA VANGUARD REAL ESTATE INDEX RET A (TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY) |
| STATE STREET S&P MID CAP INDEX RET (TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY) |
| TA VANGUARD SMALL-CAP INDEX RET ACC (TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY) |
| TRANSAMERICA PARTNERS HIGH YIELD BO (TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY) |
| STATE STREET INTERNATIONAL INDEX RE (TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY) |
| STATE STREET RUSSELL LARGE CAP VALU (TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY) |
| TRANSAMERICA PARTNERS STOCK INDEX R (TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY) |
| STATE STREET RUSSELL LARGE CAP GROW (TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY) |
| STATE STREET U.S. BOND INDEX RET AC (TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY) |
How to invest
Key principles in retirement investing:
- Proper asset allocation among stocks and bonds, the two major assets. Proper assess your risk tolerance level based on your age, financial situation, personal emotional level to tolerate up and down, and retirement expectation.
- Invest in (ultra) low cost index funds if possible. Don’t get caught up with flashy funds.
- Invest for a long term: financial markets are up and down and investment values are subject to fluctuation. However, viewed as business investments, you can be assured that diversified funds (stocks and bonds) have solid business fundamental that eventually will deliver inflation beating returns for stocks.
See Four-Step Guide for 401(k) Retirement Investing.
Basic asset allocation templates
The following asset allocation templates are based on popular lazy portfolios. Once you have decided your proper risk asset (stocks) allocation, you can utilize these lazy portfolio templates to scale the allocations to your risk allocation level. See Asset Allocation Portfolio Templates for guide:
| Name | YTD Return | 1Yr AR | 3Yr AR | 5Yr AR | 10Yr Ar | 15Yr Ar | 20Yr Ar |
|---|---|---|---|---|---|---|---|
| Core Four Asset Portfolio | 12.71% | 24.80% | 3.47% | 7.74% | 6.96% | 7.87% | 7.19% |
| Five Core Asset Portfolio | 12.86% | 24.77% | 3.36% | 7.67% | 6.89% | 7.81% | 7.30% |
| Three Core Asset Portfolio | 13.15% | 24.80% | 3.85% | 8.33% | 7.24% | 8.03% | 7.27% |
| Two Core Asset Portfolio | 13.61% | 25.81% | 4.76% | 9.31% | 8.40% | 9.38% | 7.90% |
| Yale Endowment Template | 11.94% | 26.31% | 3.25% | 7.93% | 7.71% | 8.98% | 8.19% |
| S&P 500 Index | 21.08% | 35.64% | 10.34% | 15.86% | 13.13% | 14.08% | 10.63% |
