Retirement Investment Solutions

SmartRetirement | Target Date Funds

A valuable addition to your retirement plan

JPMorgan SmartRetirementSM target date strategies are an easy, effective, long-term solution for participants who need to save for retirement, but do not want to manage portfolio allocations themselves. SmartRetirement strategies automatically re-allocate and become more conservative over time as the participant approaches retirement. This approach offers many benefits:

  • Simplified investing: Rather than research and select individual investments, participants simply choose one strategy matching their target retirement date
  • Diversified retirement assets: Investors’ portfolios are fully diversified across major asset classes and sub-classes throughout the investing time horizon
  • Automatic re-allocation: Portfolio allocations are automatically adjusted to remain age-appropriate as retirement approaches, with no action required from plan sponsors or participants
  • Professional guidance: J.P. Morgan’s experienced asset managers construct these portfolios, select strategies, and rebalance the assets, providing professional guidance for participants who may not have the time or expertise to make those decisions alone

Here's an example of how JPMorgan SmartRetirementSM  works:

  1. A 30-year-old with a target retirement age of 65 would select the SmartRetirement 2040 strategy and receive a diversified portfolio consisting primarily of J.P. Morgan equity strategies.
  2. Portfolio managers will regularly monitor the fund mix of the 2040 strategy and make tactical adjustments as market conditions warrant. 
  3. Beginning 25 years before retirement, assets are annually shifted out of equities and into more conservative assets. 
  4. By retirement age, the portfolio is positioned with a goal of generating income, protecting capital, and minimizing risk.

To learn more about Total Retirement SolutionsSM, email or call J.P. Morgan at 800-988-9804.

For questions about a personal retirement plan account, email or call J.P. Morgan at 800-345-2345. If your retirement plan is not with J.P. Morgan, contact your employer for that provider's phone number and website.

Diversification does not guarantee investment returns and does not eliminate the risk of loss. The JPMorgan SmartRetirement Funds are designed to seek to meet the Department of Labor’s rules for a qualified default investment alternative (QDIA). The funds use generally accepted investment theories and is intended to be diversified among both stocks (equities) and fixed-income investments.

Certain underlying JPMorgan Funds may invest in foreign/emerging market securities, small capitalization securities and/or high-yield fixed income instruments. There may be unique risks associated with investing in these types of securities. International investing involves increased risk and volatility due to possibilities of currency exchange rate volatility, political, social or economic instability, foreign taxation and differences in auditing and other financial standards. The Fund may invest a portion of its securities in small-cap stocks. Small capitalization funds typically carry more risk than stock funds investing in well-established “blue-chip” companies since smaller companies generally have a higher risk of failure. Historically, smaller companies' stock has experienced a greater degree of market volatility than the average stock. Securities rated below investment grade are called “high yield bonds,” “non-investment grade bonds,” “below investment-grade bonds,” or “junk bonds.” They generally are rated in the fifth or lower rating categories of Standard & Poor's and Moody’s Investor Service. Although these securities tend to provide higher yields than higher rated securities, there is a greater risk that the Fund's share price will decline. Real estate funds may be subject to a higher degree of market risk because of concentration in a specific industry, sector or geographical sector. Real estate funds may be subject to risks including, but not limited to, declines in the value of real estate, risks related to general and economic conditions, changes in the value of the underlying property owned by the trust and defaults by borrower.

There may be additional fees or expenses associated with investing in a Fund of Funds strategy.

IRS Circular 230 Disclosure: This communication was written in connection with the potential promotion or marketing, to the extent permitted by applicable law, of the transaction(s) or matter(s) addressed herein by persons unaffiliated with JPMorgan Chase & Co.  However, JPMorgan Chase & Co. and its affiliates do not provide tax advice.  Accordingly, to the extent this communication contains any discussion of tax matters, such communication is not intended or written to be used, and cannot be used, for the purpose of avoiding tax-related penalties.  Any recipient of this communication should seek advice from an independent tax advisor based on the recipient's particular circumstances.



Copyright © 2014 JPMorgan Chase & Co. All rights reserved.