Terminology
Asset Allocation: The mix of Homestead Funds with the Asset Allocation Model you have selected based on your risk tolerance and interest performance.
Asset Allocation Model Access: Technology allows you to identify your chosen Funds and percentages on our website to be used for all payroll purchases going forward. Your model can be changed or deleted at any time; this allows you to control your allocations online instead of through your payroll department.
One-Time Rebalance: Process to reallocate your current assets to your chosen model.
Auto Rebalance: Process to schedule a regular rebalance back to your Asset Allocation Model (shifts in percentages allocated to each Fund can occur over time through market movement and transactions).
Step 1
Click “Account Log In” on the right-hand side of this page. If you need assistance logging in, please call 800.258.3030, option 1.
Step 2
Once logged in, click on Asset Allocation Model in the left-side menu and select the account you wish to add a model to.
Step 3
There are three different ways to add a model to your account:
Option 1
Option 1
If you choose the Select a Pre-Defined Asset Allocation Model option, you will be presented with five portfolios. When you click on a model, the funds and percentages for that model will be displayed. You can accept it as is, change to another model or customize to your own model.
Option 2
If you choose Take a Questionnaire, you will be asked to complete a brief questionnaire about your investment time horizon and risk tolerance. The system will highlight in gray the Asset Allocation Model that is proposed based on your answers. You can accept it as is, change to another model or customize to your own model.
Option 3
If you choose Create a Custom Asset Allocation Model, you will be prompted to enter the funds and percentages according to your wishes.
Step 4
Establishing a Model will direct your contributions to the Funds in that Model going forward but will not change your current asset mix. If you would like to rebalance your current assets, you will need to select the option to initiate a one-time rebalance. If you would also like to set your account up to rebalance on a schedule, you can select that option on the following page.
All investing is subject to risk, including the possible loss of the money you invest. Neither asset allocation nor diversification ensures a profit or protects against a loss.
Using the Asset Allocation Tool
The asset allocation tool relies entirely on the limited information you provide in response to the questions posed in the risk tolerance questionnaire, and does not take into account any other information pertaining to your particular personal financial or investment situation. Homestead Advisers Corp., Homestead Financial Services Corp. and their affiliates do not verify the completeness or accuracy of such information and do not tailor an Asset Allocation Model to your particular circumstances.
As a result, you should not rely on the tool as providing advice or a recommendation as to any asset allocation or security selection. The tool does not provide any advice or recommendation regarding whether or how your asset allocation should change over time and is not a substitute for consulting with a financial advisor. Changes in tax or benefit laws, investment markets or your own financial situation over time can cause actual results of any asset allocation made today to deviate from expectations. To address this possibility, you should create several scenarios, with various sets of assumptions, to evaluate a wide range of possible outcomes. You may make changes to your responses and Asset Allocation Model selection at any time.
The asset allocation tool is provided on a non-discretionary basis, and you are under no obligation to buy or sell any Homestead Fund or other investment product or service based on any Asset Allocation Model.
Predefined Asset Allocation Models
The predefined Asset Allocation Models and related tools, as well as other investor resources provided by Homestead Advisers, are intended as informational and educational tools and should not be relied upon as the primary basis for investment, financial, tax-planning or retirement decisions. The Asset Allocation Models represent examples of possible asset allocations based on varying degrees of market risk and other factors. These Asset Allocation Models are generic and are not tailored to the investment objectives of any specific investor. The Asset Allocation Models neither are, nor should be construed as, investment advice or an offer or solicitation or recommendation to buy, sell or hold any Homestead Fund or other security.
The Asset Allocation Models for one or more Asset Allocation Models may change at any time and neither Homestead Advisers Corp. nor Homestead Financial Services Corp. will notify you when such changes are made. In addition, Asset Allocation Models do not utilize any rebalancing methodologies and also will not be rebalanced when deposits or withdrawals are made. Therefore, if you choose to allocate your mutual fund holdings according to an Asset Allocation Model, your mutual fund holdings will not be updated as a result of any changes to the Asset Allocation Models nor according to any rebalancing strategy unless you elect to set up auto-rebalancing for your account. A rebalancing strategy seeks to minimize relative risk by aligning your portfolio to a target asset allocation as the portfolio’s asset allocation changes. Not rebalancing a portfolio may over time change its risk and return characteristics. Strategies that do not rebalance may not address prolonged changes in market conditions. You are responsible for monitoring your investments and their performance and for determining whether your investments should be rebalanced. Further, we are under no obligation to update or change the asset allocation tool in any way or inform you of any changes to the tool or to any Asset Allocation Model.
An Asset Allocation Model can help you focus on a possible asset allocation strategy and create a plan of action. Homestead Advisers Corp., Homestead Financial Services Corp. and their affiliates do not provide tax advice, and you always should consult your own tax advisor regarding your personal circumstances before taking any action that might have tax consequences. You may also wish to consult a financial advisor for advice that is tailored to your investment needs. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives, provide you with a given level of income or protect against a loss. The Asset Allocation Models are intended to help manage investment risk.
You understand and acknowledge that investments made pursuant to the Asset Allocation Models are limited to investments in the Homestead Funds. By selecting an Asset Allocation Model and creating a Homestead Funds account for the purpose of making investments pursuant to an Asset Allocation Model, you are choosing to enter into a series of mutual fund orders allocated across the specific Homestead Funds that are included in the Asset Allocation Model selected by you. This may present a conflict of interest in that Homestead Advisers and its affiliates receive compensation, directly or indirectly, in connection with the management, distribution and/or servicing of the Homestead Funds.
Investment return and principal value of an investment will fluctuate. An investor’s shares, when redeemed, may be worth more or less than their original cost.
Customized Asset Allocation Model
You should consult with your financial advisor to establish your investment goals and the appropriate allocations of your investments, and you should carefully consider whether a customized Asset Allocation Model is appropriate for you.
Rebalancing
You may set up auto-rebalancing for your account at any time. This will rebalance your account, according to the frequency you select, to match your chosen Asset Allocation Model percentages. When rebalancing, the system performs exchange transactions among the Homestead Funds in the account, so that the resulting positions are in line with percentages listed in the Asset Allocation Model for the account. As a result, each exchange involves purchase and sell transactions. Please note that this may result in a taxable event for non-IRA accounts. Rebalancing can entail transaction costs and tax consequences that should be considered when determining a rebalancing strategy.