UPS Teamsters Union 401K

All investment options are diversified privately managed funds. Retirement information has been provided by United Parcel employees.  

 
Traditional asset allocation theory recommends investing in multiple asset classes of unrelated investment types, such as equities, bonds and cash.
 
Typical asset allocation models are presented here for your reference.
 
                            Aggressive               Moderate            Conservative
 
 
CAUTION: USE "PIE CHART ALLOCATION" AT YOUR OWN RISK. THE PROCESS IS NOT DESIGNED TO PROTECT YOU FROM DOWNSIDE MARKET RISK. IT IS THE WAY 401K PORTFOLIOS ARE TRADITIONALLY CONSTRUCTED. KEEP READING FOR A BETTER UNDERSTANDING.
 
                “We’ve been on a roller coaster ride in the financial system and the economy over the last 25 years. It’s going to continue. Now, it’s going to be a roller coaster on steroids. Things can go wrong like it did…May 6th…in the US stock market. ...People need tools to navigate through this. Buy-and-Hold is gone as a basic investment philosophy. You have to watch the financial flows and take some money off the table when liquidity starts to go the other way.” - J.A. Boeckh
  
Significant insights were revealed in January 2010 by one of the leading proponents of index investing and an icon of the academic community – Ibbotson Associates’ president, Peng Chen. In an interview with Morningstar discussing Modern Portfolio Theory and its dismal 2008 performance in protecting accounts, Mr. Chen said:
  
             “…we also realized that one of the traditional measures in modern portfolio theory, in particular on the risk side, standard deviation, does not work very well…”
 
However, in the 2008 market all asset classes, except cash, were highly correlated and declined in value. This list shows which investment choices have been the strongest performers recently, relative to the choices available within the plan. (Lifestyle options are excluded since they are date based re-allocation portfolios without regard to economic or market environments).
 
While past performance is not a predictor of future returns, it may provide you with some reassurance that your current investment selections remain within favored market segments.
 
Any employee using this relative strength listing as a tool for allocating a retirement portfolio should check quarterly for new ranking updates that may indicate a change in investment selection.
 
Whenever a plan does not provide a money market or stable value choice for use, the shortest term fixed income option is the recommended alternative.
  
Diversification is still good process. We do not recommend investing in less than five of the available options as long as they are ranked higher than money market. If the money market is ranked at number 3, it implies a 60% cash position and 20% in each of the funds ranked higher.
 
Your choices are limited to the investments approved by your plan trustees. We believe the asset listing was obtained from reliable sources. If there is an update to the available investment listing, please contact us at 800-317-9119 or Info@InvestorResourcesInc.com.
 
United Parcel 401k investment accounts are privately managed and not available to the public. We have used publicly traded investment options (Exchange Traded Funds) to rank recent market performance which may not be an exact clone of the investment options available to employees. We believe the investments used for ranking purposes are sufficiently similar to the investment objectives of the employees' options to be reliable for the stated purpose.
 
Fundamentally, we do not recommend investing in assets ranked below money market. Preserve your cash until the assets once again establish a positive bias in their returns and prices.
  

July 2, 2010

Do not invest in assets ranked below Money Market

Rank
Symbol
Fund Name
Asset Class
1
iShares Dow Jones U.S. Real Estate Index
Real Estate
2
iShares S&P MidCap 400 Index Fund
Mid Cap Blend
3
iShares Russell 2000 Index Fund
Small Cap Blend
4
iShares S&P 500 Index
Large Cap Growth
5
iShares S&P Moderate Allocation Fund ETF
Balanced
6
iShares Barclays Aggregate Bond Fund
Quality Intermediate Bond
7
Money Market Proxy - 13 Week T-Bill
Stable Value
8
iShares Barclays Short Treasury Bond Fund
Government Bond
9
iShares MSCI EAFE Index Fund
Foreign Large Growth

 

 

It is our opinion that investing success is more likely when you are not emotionally attached to them. Consider how much pain would have been avoided in the lives of those who were committed to Enron, Tyco, JD Uniphase, GM or Chrysler if they had maintained an objective view of their stocks and willing to let go of them in the midst of market decline.

Click Here to see how asset rankings have rotated through previous quarters and exposure to the 2008 market melt-down could have been avoided.

DISCLAIMER:
This information is provided by Investor Resources, Inc. , a registered investment advisor, and is believed to be from reliable sources, but no guarantee is made as to accuracy or completeness. The investment securities and strategies discussed are not necessarily suitable for all investors. Recommendations are of a general nature, not based on knowledge of any individual's specific needs or circumstances, and there is no intent to provide individual investment advisory, supervisory or management services. Investor Resources, Inc. is not an authorized representative of United Parcel Service or of its retirement plans.

 

Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client or prospective client’s investment portfolio. Historical performance results for investment indices and/or categories generally do not reflect the deduction of transaction and/or custodial charges, the deduction of an investment management fee, nor the impact of taxes, the incurrence of which would have the effect of decreasing historical performance results.