Chloe's story

After working for over 35 years in the credit union system and helping members prepare for retirement, 58-year-old Chloe is now three years away from her own retirement and is adjusting her investment portfolio accordingly.

 Chloe checklist

“As a financial advisor, I’m comfortable managing my own investments,” Chloe says. “I’ve always had a rather high willingness to take on risk, but now that I’m getting closer to retirement, I know I need to take a step back and review whether some lower-risk investment options are prudent as my investment horizon has grown shorter over time.”

After reviewing information about the Plan’s in-house retirement income options on the CSS website, Chloe figures she will convert her pension funds into Variable Benefit (VB) payments when she retires. By taking VB payments, Chloe 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 Chloe 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, Chloe 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,” Chloe added.

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