Which Approach Is Right for You?

[This article was archived on 10/23/2016.]

Whether you enjoy making your own investment decisions or take a more "hands-off" approach, Mutual of America provides a variety of investment options to help meet your needs.

For More Active Investors

You may want to take a more active role in selecting and managing your investment options to best meet your objectives, time horizon and risk tolerance.

Mutual of America offers a diverse choice of Separate Account investment funds from 10 well-known investment managers. With the array of fund choices available, you can structure a portfolio to be as concentrated or as diversified among the various styles of management as you wish. You can construct a portfolio with the risk and potential reward profile that you feel best suits your personal situation. Of course, keep in mind that the performance of the Separate Account investment funds is not guaranteed, and any assets allocated to them may decrease or increase in value.

For Less Active Investors

Which Way?If you want to take a less active role in your retirement plan allocations, you can choose from several investment funds in which the investment allocations are selected by a professional fund manager to help simplify your investment decisions.

If you see yourself as a less active investor, one or more of these funds could be suitable for you while helping to simplify the investment process. These funds provide you with a mix of stocks, bonds or money market investments. Each of these funds has its own special characteristics to satisfy different needs and objectives:

Target-Date Funds: Also known as the Retirement Funds. These invest in a selection of stock, bond and money market funds. Each fund starts out with a higher risk-return position and is professionally managed to become more conservative as the fund approaches and passes its target date.

The target date set forth in each Retirement Fund's name is the approximate date that the fund expects investors to retire and begin withdrawing their account balance. You can choose the fund that most closely matches your intended retirement date. That fund, in terms of time horizon, will have a mix of investments, and the mix of investments will change as the time horizon changes.

Individuals should consider their risk tolerance, time horizon, personal circumstances and complete financial situation, in addition to an approximate retirement date, before investing. There is no guarantee that a Retirement Fund will correctly predict market or economic conditions and, as with other mutual fund investments, you could lose money. The value of a Retirement Fund is not guaranteed at any time, including at or after the target date.

Selecting one fund that is allocated among the different asset classes today, and that will have investment professionals change those allocations in the future, greatly simplifies the investment decision process for you.

Asset Allocation Funds: These offer a mix of equity and fixed income investments, based on an aggressive, moderate or conservative approach to investments.

Balanced Investment Funds: These offer a choice of diversified portfolios that invest in a set percentage of stock, bond and money market investments, using the research and portfolio management capabilities of the respective firms.

Unlike the Retirement Funds, the mix of investments in the Asset Allocation Funds and the Balanced Investment Funds does not change as the time horizon changes, so you will need to reevaluate these investment choices as your individual circumstances and investment considerations change.

It is important to note, however, that even with investment decisions that fit into a simpler pattern, you still need to take care to understand the risks of your investment choices.

Before investing, you should carefully consider the investment objectives, risks, charges and expenses of the variable annuity contract and the underlying investment funds. This and other information is contained in the contract prospectus or brochure and underlying funds prospectuses and summary prospectuses. Please read the contract prospectus or brochure and underlying fund prospectuses and summary prospectuses carefully before investing. The contract prospectus or brochure and underlying fund prospectuses and summary prospectuses can be obtained by mail or by calling 1-800-468-3785.

Mutual of America's group and individual retirement products are variable annuity contracts and are suitable for long-term investing, particularly for retirement savings. The value of a variable annuity contract will fluctuate depending on the performance of the Separate Account investment funds you choose. Upon redemption, you could receive more or less than the principal amount invested. A variable annuity contract provides no additional tax-deferred treatment of benefits beyond the treatment provided to any qualified retirement plan or IRA by applicable tax law. You should carefully consider a variable annuity contract's other features before making a decision..

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