Tier 3 – Capital Preservation and Income Funds

Investing Style: A broad selection of funds that seek to preserve savings and generate income or produce returns that exceed the inflation rate.

One of the Tier 3 funds, the New York Life Guaranteed Fixed Interest Account is a guaranteed fixed-return annuity is designed to provide you with a high level of principal stability. In addition, it lets you convert your balance to a guaranteed stream of income when you retire (Any guarantees are subject to the claims paying ability of the issuer).

The remaining funds in Tier 3 focus on income generation and inflation protection for investors who want to produce a growing income distribution while leaving the principal alone or returns that exceed the inflation rate so investors can build future purchasing power and wealth.

Unlike the managers of index funds, the managers of actively managed funds do not attempt to mirror the holdings and performance of an index. These fund managers have flexibility to actively seek out investments that they believe will beat, or exceed, the performance of an index. Since actively managed strategies often involve a great deal of research and because transactions within these funds tend to occur more frequently, actively managed investment options often have higher expense ratios than index.

Fund Name Ticker Symbol
New York Life Guaranteed Interest Account N/A
Vanguard Cash Reserves Federal Money Market Fund Admiral Shares – Short Term VMRXX
Vanguard Inflation Protected Securities Fund – Institutional VIPIX
Loomis Sayles Core Plus Bond – Y NERYX
PIMCO Inflation Response Multi Asset Fund – Institutional PIRMX