Considering retirement in 2006? There are a number of things to think about as you consider what to do with the money in your employer-sponsored 401(k) plan. Foremost, everyone wants the best of both worlds -- security and the best rate of return possible. But in most cases, you’re only able to achieve one of these “best” scenarios, because there is a price for security.

The overall assumption is that the more secure an investment is, the lower the rate of return will be to offset the amount of security offered by the investment. Less secure investments typically deliver a higher the rate of return, to justify the higher risk. This is why, historically, stocks typically produce higher returns than bonds. Stocks are considered a riskier investment and therefore the reward of a potentially higher rate of return is possible.

One way to manage this assumption is to invest in both low-risk and high-risk investments, known as diversification. Diversification means creating an investment portfolio that provides a level of risk that you feel comfortable with and meets your financial objectives.

What’s new? CUNA Mutual’s Retirement and Investment Planning Services* staff can help you assess your retirement planning needs and manage your account as you plan for retirement. Our new Retirement Allocation Modeling Program was created to make the retirement investing decision-making process easy. Individuals who don’t want to expend time allocating their retirement money may find this service beneficial.

This program takes a portion of your retirement assets and places it into an immediate annuity which provides a monthly guaranteed benefit that you cannot outlive. It takes the other portion and places it into a variable investment, giving you the ability to direct your investments as you see fit, and could help protect your retirement assets against the effects if inflation.

How do you take advantage of this new program? Call our Retirement and Investment Planning Specialists toll free at 800-999-8786 (option 3) and advise the Specialist of your retirement plans. If you decide to select the Retirement Allocation Modeling Program, a Retirement Specialist will be assigned to you. Each quarter, your assigned Specialist will contact you to provide updates and analysis of your specific retirement account. You’re welcome to call them too, whenever you have a question on your retirement plan. They’re a great resource and available at no charge to you or your employer.

Not ready to retire?
Our Retirement and Investment Planning Specialists are still a great resource for you as you continue to build your retirement plan assets. You’re welcome to contact them during normal business hours or by email, psu@cunamutual.com. We also offer a wealth of retirement planning tools and resources on our website, www.benefitsforyou.com.

* Representatives are registered through, and securities are sold through, CUNA Brokerage Services, Inc. (CBSI), member NASD/SIPC, 2000 Heritage Way, Waverly, Iowa, 50677, toll-free (866) 512-6109. Insurance sold through licensed CUNA Mutual Life Insurance Company Representatives, and in New York, licensed insurance representatives of other companies. Non-deposit investment products are not federally insured, involve investment risk, may lose value, and are not obligations of or guaranteed by the credit union.

Gary R. Peterson, ChFC, CLU, CRA is Manager – Financial and Retirement Planning at CUNA Mutual.