MarylandSaves investment options

Make informed decisions about your retirement

Most of us don’t have the time or expertise to pick and choose among the many investment options. MarylandSaves did the work for you:

• We picked a limited number of professionally managed investment options, including funds that invest in US and international stocks or in bonds and other fixed income securities. You can, if you want, specify that your WorkLife Savings funds should be allocated to any or all of those. Before making these complicated decisions, many people choose to consult a financial adviser. You can, too.

• But if you don’t want to have to go through all that analysis and compare those funds, we’ve set up a standard investment program that should work for most people.

Your portfolio choices

Emergency Savings Fund

This option is intended to be a cash-like fund that seeks to help investors preserve the value of their savings by investing in insurance products that have a guaranteed rate of return. The Emergency Savings Fund is 100% invested in the Guaranteed Investment Contract issued by The Lincoln National Life Insurance Company (Ticker: Z455X, CUSIP: 53423K160). All participants in MarylandSaves will be enrolled automatically in the Emergency Savings Fund until their initial WorkLife Account contributions exceed $1,000, unless they have chosen otherwise. Savers can also choose to invest in the Lincoln Guaranteed Investment Contract Product beyond the default $1,000 emergency savings amount. There is no additional asset-based investment management fee for this fund.

Target Retirement Date option

Each Target Retirement Date option has a specific “target date” (e.g., 2035, 2045, 2055) and invests in a mix of stocks and bond funds based on how far away it is from its target date. Certain funds have been created to drive growth for younger investors who can take more risk and become more conservative over time to help investors preserve savings as the funds near their target dates. Target Retirement Date options are available for savers of all ages, and are usually selected by picking the fund that is closest to the year in which you would turn 65.

For savers who are enrolled using the standard savings options, after their emergency savings have reached $1,000, additional contributions will be invested automatically in a default Target Retirement Date option based on his or her date of birth and expected retirement year. These funds have an annual investment management fee of 9¢ per $100 invested.

The MarylandSaves Target Retirement Date options are 100% invested in BlackRock Retirement Funds. These funds invest in an assortment of stock and bond funds managed by BlackRock. The Target Retirement Date options available include:

Bond Index option

The Bond Index option is intended to be a more conservative option that seeks to help investors preserve the value of their savings, while still earning income by investing in bonds. The MarylandSaves Bond Index option is 100% invested in the State Street Aggregate Bond Index Fund (SSFEX). This fund has an annual investment management fee of 2.5¢ per $100 invested.

Global Growth Stock option

The Global Growth Stock option invests in blue chip company stocks in at least five different countries, including the U.S. The fund seeks opportunities that have potential for above-average returns. This option is designed for investors with a longer time horizon (10 years or more) and will provide the highest level of risk and the potential for higher return out of the investment options. This option is 100% invested in the T Rowe Price Global Growth Stock Fund (RPGEX). This fund has an annual investment management fee of 67¢ per $100 invested.

It’s important to know that all investing comes with some degree of risk. Nothing on this page should be construed as investment advice. If you need help, you should consider consulting with a qualified financial advisor before making a decision to invest in any fund.