Investing Spotlight

Retirement-Savings Plans Help During Volatile Times

When you invest regularly in a retirement-savings plan, like a 457 or 401 plan, you may have an advantage over many other investors during periods of market volatility. By investing a fixed amount every payday, you're engaging in a strategy called dollar-cost averaging.¹ For one thing, your steady investments will buy more shares when fund prices drop.

Just as important, dollar-cost averaging may also help eliminate the urge to try to time the market — which is very difficult to do. Investors who attempt to time market moves and chase performance may buy when share prices are high, then panic and sell when they're low — at exactly the wrong time. Consistent dollar-cost averaging can help you avoid that blunder. History shows that many investors have done best by investing over the long term in a well-diversified portfolio.

Because it's impossible to know which type of investment will do best next, it's important to diversify among several types of mutual funds. For long-term investors, that may mean spreading your money among funds that invest in large, medium and small companies, including some that search for fast-growing companies or for undervalued stocks. Also consider bond funds and other fixed-income investments as part of the portfolio.

For a one-stop solution, consider the Milestone and Model Portfolio funds, which include diversified portfolios of Vantagepoint funds created to match your investing goals.²

¹ Dollar-cost averaging plans do not assure profit or protect against loss in a declining market. Because plans involve continuous investment, regardless of fluctuating prices, investor must consider financial ability to continue to invest during low price levels.

² Please be advised that with "funds of funds" arrangements, additional underlying fees may apply.

Please consult both the current applicable prospectus and Making Sound Investment Decisions: A Retirement Investment Guide carefully for a complete summary of all fees, expenses, charges, financial highlights, investment objectives, risks, and performance information. Investors should consider the fund's investment objectives, risks, charges, and expenses before investing or sending money. The prospectus contains this and other information about the investment company. Please read the prospectus carefully before investing. All Vantagepoint Funds invested through 401 or 457 plans are held through VantageTrust. Vantagepoint Funds are distributed by ICMA-RC Services LLC, a wholly owned broker-dealer subsidiary of ICMA-RC and member FINRA/SIPC. For a0 current prospectus, contact ICMA-RC Services, LLC, ICMA-RC or any of its affiliates by calling 800-669-7400 (TDD: 800-669-7471) or by writing to 777 North Capitol Street, NE, Washington, DC 20002-4240, or by visiting www.icmarc.org. Para asistencia en Español llame al 800-669-8216.