Past Performance

Investment prudence requires that risk be "controlled". Among other things, this means that investment risk should be reduced as an investor grows older and can no longer tolerate large losses, particularly when the 401(k) account represents a major source of retirement income. The 401(k) Formula^TM, which is a risk management system, is not perfect. Over a complete four-year cycle, The 401(k) Formula^TM is 100% invested in equities about 70% of the time. This exposure, even though justified by historical experience, should not be the norm for the average investor. Rare events, or "black swans", do occur and are essentially unpredictable. Therefore, some continuous exposure to conservative bonds is recommended for most investors. This exposure should increase with age.

Age 20 - 40	100% The 401(k) Formula
Age 40 - 50	80% The 401(k) Formula / 20% Bonds
Age 50 - 60	70% The 401(k) Formula / 30% Bonds
Age 60 - 70	60% The 401(k) Formula / 40% Bonds
Age 70+	50% The 401(k) Formula / 50% Bonds

Historical Performance
The 401(k) Formula^TM by Age Categories