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Common Questions on MyDestination Funds®

What are Target Date Funds?

Target date, or life-cycle, funds are diversified “fund-of-funds” that have an asset allocation that gradually becomes more conservative as you approach retirement. It is a simple retirement strategy. You decide your retirement date and pick the fund with the date closest to your target retirement destination.

Why choose a MyDestination Fund?

You might consider a MyDestination Fund® if:

  • You are looking for a simple solution — one-stop investing.
  • You want professional management with automatic asset rebalancing.
  • You want a diversified portfolio that gradually adjusts as your retirement date approaches.

Which MyDestination Fund is right for me?

Simply choose the Fund with the date that is closest to when you plan to retire and your portfolio will be adjusted regularly over time in an effort to meet your objectives up to and during retirement. Then, make consistent and appropriate retirement contributions throughout your career. Conventional wisdom says you should set aside at least 10 to 15% of your annual pre-tax income for retirement (including employer match).

If your date of retirement is: This Fund might be right for you:

2011 – 2020

MyDestination 2015 Fund*

2021 – 2030

MyDestination 2025 Fund

2031 – 2040

MyDestination 2035 Fund

2041 – 2050

MyDestination 2045 Fund

2051 – 2060

MyDestination 2055 Fund

*The MyDestination 2015 Fund will continue to gradually increase its investment allocations in fixed-income securities until 15 years after the target retirement year (2015), at which time, all remaining assets will be transferred to the Conservative Allocation Fund in the year 2030.

 

Why is it important that the MyDestination Funds adjust over time?

Financial experts agree that when you are younger, you are better suited to place a greater emphasis on stocks in your retirement portfolio. On the other hand, as you approach retirement, more emphasis should be placed on the protection of your accumulated assets and a more conservative approach to investing should be adopted. By selecting a MyDestination Fund, you can make sure your portfolio automatically adjusts its allocation among stocks, bonds and cash investments over time, trending toward a more conservative mix as your retirement nears.

MyDestination Funds asset allocation over time

Who may invest in the MyDestination Fund?

The Funds are available to all investors who are currently eligible to invest in the other GuideStone Funds.

Who should consider investing in these funds?

The MyDestination Funds may be suitable for investors who seek a simple and sophisticated one-fund solution. Rather than having a hands-on approach, these investors prefer a diversified, professionally-managed portfolio with asset allocations that are automatically rebalanced and adjusted for risk as the target date draws closer.

What age of person is best suited for a MyDestination Fund?

Participants of all ages are equally suited to use a MyDestination Fund as a one-fund solution. It is important to make consistent contributions at an appropriate financial level to meet your financial goals.

What is the difference between the current GuideStone Funds Asset Allocation Funds and the Target Date Funds?

Both the Asset Allocation Funds and the Date Target Funds offer a one-fund solution to an investor. The Asset Allocation Funds consider an investor’s risk profile — conservative, moderately conservative, moderately aggressive or aggressive. The Target Date Funds consider an investor’s time horizon — the retirement date — and the appropriate level of risk adjusts as the time horizon to retirement decreases.

What are the principal investment strategies of the MyDestination Funds?

  • The Funds, primarily through investments in the Select Funds, are managed to a specific retirement year by adjusting the percentage of fixed-income securities and the percentage of equity securities to become more conservative each year. This investment strategy is employed for 15 years beyond each Fund’s target date.
  • The strategy is to pursue the maximum amount of capital growth, consistent with a reasonable amount of risk during a shareholder’s pre-retirement and early retirement years, and to adjust the Fund’s asset allocation to increase exposure to investments in more conservative fixed-income securities and short-term bonds during a shareholder’s later retirement years.
  • Fifteen years after the target retirement year, the Fund’s assets will be transferred to the Conservative Allocation Fund at which time the Fund will seek current income and modest capital appreciation. For instance, an investor choosing the MyDestination 2015 Fund will have all remaining assets in the fund transferred to the Conservative Allocation Fund in the year 2030.

Can I use a combination of MyDestination Funds with other funds?

An investor could invest in a combination of the MyDestination Funds and other GuideStone Funds, but this is counter to the purpose of Target Date Funds. Those who combine one of the MyDestination Funds with other funds could find themselves with confusing and complex portfolios, unintended duplication and unintentional risk as a result of these asset allocations. Each MyDestination Fund is designed to be a single, comprehensive fund solution.

What are the principal risks of the MyDestination Funds?

The MyDestination Funds (“Funds”) attempt to achieve their objectives by investing in the GuideStone Select Funds. The Funds are managed to a retirement date, reflected in the name of the Funds, by adjusting the percentage of fixed income securities and equity securities to become more conservative each year until reaching the retirement year and then approximately 15 years thereafter. As a result, the Funds objectives and investment strategies will change over time. By investing in the Funds you will also incur the expenses and risks of the underlying Select Funds. The principal risks of the Funds will change depending on the asset mix of the Select Funds in which they invest. You may directly invest in the Select Funds. The Funds’ value will go up and down in response to changes in the share prices of the investments that they own. There is no guarantee that the Funds’ principal value will increase, including at the targeted date. It is possible to lose money by investing in the Funds.The MyDestination Funds are subject to the risks of the underlying Funds and the principal risk of the Funds will change depending on the asset mix of the Select Funds in which it invests. Each Fund’s value will go up and down in response to changes in the share prices of the Select Funds and other investments that it owns. There is no guarantee that a Fund’s investments will increase in value. Therefore, as with all mutual funds, it is possible to lose money by investing in a Fund.

When selecting a MyDestination Fund, consider your estimated retirement date and risk tolerance. In general, these funds assume a retirement age of 65. Investors typically should choose a fund whose stated date range is closest to the date the shareholder will turn age 65. While choosing a fund targeting an earlier or nearer date represents a more conservative choice; targeting a fund with a later or farther date represents a more aggressive choice. It is important to note that the retirement year of the fund you select should not necessarily represent the specific year you intend to start drawing retirement assets. It should be a guide only.