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Retirees begin new trend in faith-based mutual funds 2010-05-17 Investors follow certain strategies when deciding which funds to invest in, but the market is seeing a new trend in retirement investments: faith-based mutual funds. These types of investments are tailored towards certain religious beliefs and most do not invest in companies associated with alcohol, stem cell research or contraceptives, according to Smart Money. The growing trend is likely due to a change in the 2008 regulatory rules that govern the 403(b) plans, the Hartford, one group that takes advantage of these funds, told Smart Money. The 403(b) programs are retirement savings plans used by nonprofit and public education groups. The new rules encouraged tax-exempt groups to seek advice from broker dealers on the investment options available, reports Smart Money. However, investors say that faith-based funds may not be for everyone because they tend to be more expensive. "It has to fit the portfolio," Legend Financial Advisors' Jim Holtzman told Smart Money. "Sometimes it might not be as good of an investment. It's a question of what you let drive the decision," he added. Investors have long encouraged retirees to diversify their portfolios to build retirement income and protect assets from market volatility. Retirees interested in the stock market may benefit from consulting with an advisor.  |
