What is Changing
The new investment option structure:
Selected investments include a limited number of high-quality, low-fee funds the University has chosen for the retirement plan. The University will monitor these funds to ensure they meet certain fiduciary standards.
There are three types of selected funds.
- The Vanguard Target Retirement Funds are premixed, professionally managed funds that build in diversification and automatically get more conservative as the funds approach their retirement dates. You invest in a single fund according to your estimated retirement date.
- The Core Mutual Funds include four index funds and 11 actively managed funds. Boston University has a selected a spectrum of high-quality, low-cost money market, bond, stock, and international funds, so you can create your own mix.
- The Core Annuity Accounts invest in a diverse portfolio, similar to the core mutual funds. The difference is that when you retire, you have the option of immediately converting your balance to an annuity that will provide a stream of income, guaranteed for life.
The Brokeragelink®, a self-directed brokerage account, designed for the willing investor who prefers to exercise more control over their investments. Opening a brokerage account will allow you to continue to invest your retirement savings in mutual funds that are no longer included in Boston University’s core investment line-up. While a brokerage account offers expanded flexibility, it also comes with additional responsibility and risk. The University does not select or screen these investments.