It's important to consider three things:
- Risk tolerance, or how comfortable you are with the account value rising and falling with the markets.
- Age, which may help determine risk tolerance. Younger members may be able to afford to take on more market risk since stock losses can be made up over time. Members closer to retirement may want to allocate more in stable value investments that provide regular income.
- Portfolio diversification – the concept of spreading contributions among different types of investments to reduce overall risk.
Please keep in mind that we are unable to provide investment advice and recommend contacting a trusted financial advisor or planner.
For more on investing your with INPRS, check out Investing 101.