Choosing investments for a goal as important as retirement can be a bit overwhelming for some taxpayers. Many factors influence the decision, including total savings need, time horizon, and general tolerance for risk. For those who want to minimize the decision-making when it comes to choosing investments, John Hancock offers two possible solutions — the Retirement Living and Lifestyle Portfolios.
Retirement Living portfolios are the most hands-off option in terms of decision-making. They take much of the guesswork out of diversification by leaving the investing to the professionals, who carefully construct and monitor each portfolio. Each Retirement Living Portfolio’s asset mix changes over time to adjust to an appropriate asset allocation mix according to how many years are left to the targeted retirement date. The further it is from the retirement date, the more aggressive the portfolio mix. As it gets closer to the retirement date, the portfolio is automatically reallocated and becomes more conservative to reduce risk and volatility. All individuals need to do is select the one portfolio that best matches their retirement date.
By contrast, Lifestyle Portfolios require a bit more active involvement from their taxpayers — but not too much! Lifestyle Portfolios provide one-step diversification in the form of five investment alternatives that match five distinct risk strategies. Individuals determine which of the five alternatives is most appropriate for their risk tolerance by taking a brief, six-question quiz. The results of the quiz help identify an investor’s style, and suggest the Portfolio that may best meet his or her risk profile. Our experts professionally manage the five different Portfolios, ensuring the appropriate mix of the underlying funds for each risk target with a goal of enhancing potential returns while minimizing risk. Once taxpayers select the Portfolio that is aligned with their risk profiles, they need only monitor changes in their risk tolerance level over time and adjust their choices as necessary. (Periodically retaking the quiz will help individuals gauge their changing investment needs.)
The same professionals who manage the Retirement Living and Lifestyle Portfolios are also responsible for rebalancing them on a regular basis. That means that they make adjustments in each Portfolio’s holdings to help keep it on track relative to its objective.
When choosing a Lifestyle or Retirement Living Portfolio, taxpayers should bear in mind that — like all asset allocation funds — these Portfolios are designed to be a single solution; that is, they are not intended to be combined with other mutual funds within a retirement portfolio. For this reason, Lifestyle and Retirement Living Portfolios are probably most appropriate for taxpayers who really want to leave the vast majority of the decisions to the professionals. Remember, Retirement Living and Lifestyle Funds are subject to investment risk and the potential loss of principal.
As with any type of mutual fund, taxpayers should review a Lifestyle or Retirement Living Portfolio’s fund fact sheet and prospectus, which contain more information about fees and risks and should be read carefully before investing or sending money.
For more information about the Lifestyle and Retirement Portfolios, including details on the four-step investment management process, please click the following links:
For help in choosing investments for your retirement portfolio, please visit our Fund Selection and Mapping Tool.
John Hancock is a unit of Manulife Financial Corporation, a leading Canadian-based financial services group serving millions of customers in 22 countries and territories worldwide. Operating as Manulife Financial in Canada and Asia, and primarily through John Hancock in the United States, the Company offers clients a diverse range of financial protection products and wealth management services through its extensive network of employees, agents and distribution partners. Funds under management by Manulife Financial and its subsidiaries were $478 billion as of December 31, 2010. Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE, and under '0945' on the SEHK. Manulife Financial can be found on the Internet at www.manulife.com. John Hancock may be found on the Internet at www.johnhancock.com.
The John Hancock unit, through its insurance companies, comprises one of the largest life insurers in the United States. John Hancock offers a broad range of financial products and services, including whole life, term life, variable life, and universal life insurance, as well as college savings products, fixed and variable annuities, long-term care insurance, mutual funds and various forms of business insurance.
A fund’s investment objectives, risk, charges and expenses should be considered carefully before investing. The prospectus includes this and other important information about the fund. To obtain a prospectus, call your financial professional, John Hancock Investments at 1-800-255-5291 or visit our web site at www.jhinvestments.com. Please read the prospectus carefully before investing or sending money.
This material does not constitute tax, legal or accounting advice and neither John Hancock nor any of its agents, employees or registered representatives are in the business of offering such advice. It was not intended or written for use and cannot be used by any taxpayer for the purpose of avoiding any IRS penalty. It was written to support the marketing of the transactions or topics it addresses. Anyone interested in these transactions or topics should seek advice based on his or her particular circumstances from independent professional advisors.
| John Hancock Funds, LLC
601 Congress Street
Boston, MA 02210-2805
Privately Managed Accounts
NOT FDIC INSURED, MAY LOSE VALUE,
NO BANK GUARANTEE. NOT INSURED BY
ANY GOVERNMENT AGENCY.
between 8:30 a.m. and 7 p.m. Eastern time.Ready to make the call? View the pre-call checklist »