MODEL ALLOCATION SUMMARIES
(last updated February 2019)
The following is a summary of the five different allocation models we have created for your General Motors Health Savings Account. Depending on your risk tolerance, you should select one of these allocations for your account. It’s important to note that we do not recommend switching between the different allocations unless there has been a fundamental change in your risk tolerance or retirement goals. Often we find that those who try to time the markets end up hurting their account in the long run. Once you have determined the appropriate model for you and your situation please click here
to view the allocations.
Conservative Allocation (20% Equity/80% Fixed Income)
This is the most conservative allocation and is intended for anyone whose primary goal is to preserve capital. This allocation will invest primarily in fixed income funds, while at the same time keeping a small allocation in equities, to boost potential returns.
Moderately Conservative Allocation (40% Equity/60% Fixed Income)
This allocation is for those people who are conservative but still want some amount of exposure to equity markets. This allocation allows for a more broad equity exposure while still maintaining a majority fixed income allocation.
Balanced Allocation (60% Equity/40% Fixed Income)
This is a moderate allocation, for those people that fall somewhere in between being conservative and aggressive. This allocation provides broad exposure to both equities and fixed income. Over longer periods of time it could provide better returns than the two more conservative allocations, with less volatility than the two growth allocations.
Moderate Growth Allocation (80% Equity/20% Fixed Income)
This more aggressive allocation is for those who seek potentially higher long-term returns, but are willing to also accept higher volatility in their account. This allocation keeps a small percentage in fixed income so that it may help stabilize the overall portfolio.
Aggressive Growth Allocation (100% Equity)
This is the most aggressive of our allocations and is 100% invested in equity markets. This allocation is for those people whose goal is to have potential high growth in their accounts, understanding that during down markets it may fall quite a bit. This is the most volatile of the allocations and has the greatest potential for extreme negative or positive returns.