Since your destination is retirement, your investment strategy will be affected by time - both the remaining time you expect to be actively at work, and the number of years you anticipate living in retirement. And since time is an important factor, your investment objectives are likely to change over the course of your life. For example, if you have many years until retirement, you may be willing to invest aggressively to seek long-term growth. As you near retirement, you may become more interested in investments that emphasize price stability to protect the value of your retirement savings.

Most financial experts agree that you will need 70% to 80% of your pre-retirement income to maintain your current standard of living in retirement. But that is just a rule of thumb. Think carefully about specific plans you have made for your retirement, such as buying a home or traveling. Remember also that things like automobiles, roofs and dishwashers wear out and need to be replaced whether you are working or retired. Having to fund these items in addition to maintaining your standard of living may affect your investment strategy.

Along with the Retirement Plan, you may have other sources of retirement income such as the Tax-Deferred Annuity (TDA), personal savings (bank savings accounts, certificates of deposit, or contributions to TAS) and Social Security. These sources should be considered in setting your investment goals. For example, if your personal savings are in a very conservative investment vehicle such as a bank certificate of deposit or money market fund, you might want to use more aggressive investments in your MMBB accounts.

All investments carry some degree of risk. A certificate of deposit with a fixed rate of interest is relatively "safe" in that your principal is not at risk...but you risk loss of purchasing power if the interest rate fails to keep up with inflation. Other investments have different types of risk, such as a company's financial failure or a declining economy. You need to decide how much and which types of risk you are comfortable with. Later in this Guide you will find a detailed discussion of investment risk. Read that section, then decide on an investment strategy that is consistent with your retirement goals.

Only you know all the details of your personal situation - and only you can decide which investments are best for you. You may decide to direct your own investments. Any account balance you do not direct will be invested in the Balanced Fund. It's your choice.