LifePath Fund Diversification

In January 2006, the LifePath funds further diversified their holdings by adding investment allocations to REITs (Real Estate Investment Trusts) and TIPS (Treasury Inflation Protected Securities). These allocations give participants exposure to these newer asset classes and are intended to lower investment risk through the additional diversification.

Each LifePath fund is managed towards a specific retirement year, so you only need to pick the fund that most closely matches your anticipated retirement. If you are uncertain about choosing investment options, you may want to look into the LifePath funds.