When you selected your investment options for your Lockheed Martin 401(k), did you feel overwhelmed with the available choices? Many employees understand that saving to their 401(k) is important but are unsure about the investment options and which option would be most suitable for them. Target-date funds are one option that can appeal to many Lockheed Martin employees. In this post, we will focus on how target date funds are allocated and why individuals find them appealing as 401(k) investment options.
As a Lockheed Martin employee, you have the ability to contribute pre or post-tax dollars to your 401(k), which then is invested into the market via the investment options you select. There are two types of investment options: individual funds and target-date funds. Target-date funds are designed to coincide with your expected retirement date. For example, if you plan to retire in the year 2051, then the target-date fund that would coincide with your planned retirement date would be the LMIMCo Target-Date Fund 2050.
The question is how do these targe-date funds actually work? The funds are invested across a variety of assets such as equities, bonds, and real estate. Routinely throughout the year, the fund managers reallocate the asset mix to be more conservative, often meaning fewer equities and more bonds. With this approach, the fund managers are focusing more on income-producing and investment-protecting type assets as your retirement date approaches. This is a simple way to invest without having to make the investment decisions yourself. Some look at it as a “set it and forget it” type of investing.
Lockheed Martin has 13 target-date funds from which to choose. You can select the fund that coincides with your planned retirement date. If you prefer to have more exposure to equities for a longer period, then you can choose a fund with a date further in the future. If you prefer to have less equity exposure, then you can choose a date that is closer. The choice is yours. Here is a listing of the available target-date funds:
| LMIMCo TARGET-DATE FUND | EXPECTED RETIREMENT DATE RANGE |
| LMIMCo Target-Date Fund 2065 | 2063 or later |
| LMIMCo Target-Date Fund 2060 | 2058-2062 |
| LMIMCo Target-Date Fund 2055 | 2053-2057 |
| LMIMCo Target-Date Fund 2050 | 2048-2052 |
| LMIMCo Target-Date Fund 2045 | 2043-2047 |
| LMIMCo Target-Date Fund 2040 | 2038-2042 |
| LMIMCo Target-Date Fund 2035 | 2033-2037 |
| LMIMCo Target-Date Fund 2030 | 2028-2032 |
| LMIMCo Target-Date Fund 2025 | 2023-2027 |
| LMIMCo Target-Date Fund 2020 | 2018-2022 |
| LMIMCo Target-Date Fund 2015 | 2013-2017 |
| LMIMCo Target-Date Fund 2010 | 2008-2012 |
| LMIMCo Target-Date Retirement Fund** | 2007 or earlier |
Review your LLM Corporation Savings Plan Investment Options Guide for more detailed information.
Choosing your 401(k) investment options is very important. These are the dollars that will eventually help replace your current income for many years. Your investments within your 401(k) should ideally complement your personal investments held elsewhere and they should be considered in your overall financial plan. If you’d like to know more about how your 401(k) investment options are coordinating with other investments and your overall plan, then you’re in the right place! Give us a call at 817-210-3444 or click HERE to book a complimentary meeting with one of our Lockheed Martin Specialists.
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