California Educator

December/January 2021

Issue link:

Contents of this Issue


Page 58 of 67

There are two ways to select and manage your investments: 1. Through a target date fund, which corresponds to your age and planned retirement date, and automatically adjusts downward the level of risk being taken on that timeline over time. BlackRock, the world's largest money manager, is the target date fund provider. The target date fund is a mix of investments that is selected by professionals. As your planned retirement date gets nearer, the fund's mix of investments automatically adjusts. It favors growth (more stocks) in the early years, and becomes more conservative (more bonds and income funds) as you near retirement. Using a BlackRock target date fund means you don't have to worry about diversifying and rebalancing your portfolio; it's all done for you. 2. You select and manage investments yourself based on a handful of options (generally invested through low-cost index funds) across the equity and fixed income spectrum. " You spend your career helping students plan for their future. CTA wants to help you plan for yours. We think every California teacher has the right to a high-quality, low-cost retirement plan." — CTA President E. Toby Boyd Because your CalSTRS or CalPERS pension will cover only about a third to a half of the income you will need in retirement, CTA has created a retirement savings plan to help make up the difference. CalSTRS and CalPERS + = 403(b) Savings Income for when you stop working There's no minimum amount required to start the plan. And you can opt into or out of any fund as you please. CTA wants you to have a long and happy retire- ment and is here to help on your journey to financial security. Contact the CTA Enrollment Center at 916-235-9800 or at for more information and to get started with the Retirement Savings Plan. In addition, you can watch a video about the plan with CTA President E. Toby Boyd at, and find details as well as personal finance tools and investment news at For member stories about why and how they made the switch to CTA's Retirement Savings Plan, turn to the following pages. How a Target Date Fund Works % conservative investment % growth investment Provided for illustrative purposes only. Age 25 35 45 65 57 D E C E M B E R 2 0 2 0 / J A N U A R Y 2 0 21

Articles in this issue

Links on this page

Archives of this issue

view archives of California Educator - December/January 2021