After reviewing information about CSS' in-house retirement income options, Sherry figures she will convert her pension funds into Variable Benefit (VB) payments when she retires. By taking VB payments, Sherry can stay invested in a combination of the Plan’s investment funds, giving her the flexibility to move a portion of her pension funds into a lower-risk investment option if she chose to, while enjoying the fee advantage accessible through CSS.

Since Sherry already holds several other investments in stock and bond mutual funds outside the Plan, she is not entirely dependent on her CSS Pension for her retirement and understands that VB payments may not provide her with a retirement income for life. And, given her career helping credit union members understand their own investment risk tolerance and assisting them in managing their financial assets and planning for their retirements, Sherry has a very good understanding of her own tolerance for investment risk and has given considerable thought to her own retirement plans.“

After considering my comfort with investment risk, the fact that I have investments outside the Plan, and that I plan to remain invested after retirement by taking VB payments, I have decided to invest my CSS funds 100% in the Balanced Fund for the time being. I will re-visit this decision periodically as I deplete my funds outside the Plan,” Sherry added.