When it comes to investing, people have different levels of risk tolerance and experience. There are some that have limited knowledge in actively developing an investment portfolio and there are those who prefer to select their own mix of investments.
Offering a simple approach to investing, the Plan’s investment lineup is organized into choices designed to match your level of interest in investing, making investing easier for everyone.
Your choice, simplified.
| Your Choice |
Your Involvement |
The Investment Approach |
Help-Me-Do-It.
Target Retirement Date Funds – A diversified portfolio in a single fund.
|
You select the fund, CalPERS manages the asset allocation of the fund.
This approach is convenient if you don’t have the desire, time or experience to actively select your asset allocation and manage it over time.
|
A series of target retirement date funds offer a diversified portfolio in one fund. Each fund invests in a well-diversified portfolio of a mix of index funds that is automatically rebalanced to a less aggressive mix of investments to become more conservative as it approaches its target date. |
Do-It-Myself.
Core Funds – A carefully selected list of passively managed investment options.
|
You select your funds and actively design and manage your asset allocation over time. If you like to design and actively manage your own asset allocation based on your individual circumstances, you can choose from a carefully selected list of core investment fund options. |
CalPERS has selected a set of six index funds in different asset classes (stocks, bonds, and cash equivalents) so you can diversify your portfolio based on your personal situation.
|
In making your investment selection, you can choose to invest your contributions, in 1% increments adding up to 100%, in any combination of the following:
HELP-ME-DO-IT
DO-IT-MYSELF
Self Directed Brokerage Account Fact Sheet (SDBA)
You can enroll in the Charles Schwab PCRA through your online account.
- Navigate to Investments & Research / Self Directed Brokerage Account page
- Choose ‘Open an Account’ on the Self Directed Brokerage Account page
- User is brought to the Terms & Conditions. Read information, check the box and click Continue
- User is brought to Schwab PCRA EAO Terms & Conditions page. Read information and click Accept
- Choose ‘Open new PCRA’ (or, Open new ROTH PCRA)
- Consent to Online App Process – click Continue
- Complete the Schwab PCRA Account Application
- Once Account Application is completed, the PCRA account number is displayed.
Click Continue to register new account access with Schwab.
You may change your fund elections at any time by calling the CalPERS Information Line at
1-800-260-0659.
CalPERS has a new frequent trading policy to secure the investment performance of the Supplemental Income 457 Plan funds for the benefit of all investing in the funds. As the funds are designed to achieve participants' long-term retirement income goals, short-term trading will be limited. Multiple round trip trades into and out of a fund is subject to these restrictions. For more information on the Supplemental Income Plans’ Excessive Short-term Trading restrictions, please see the Supplemental Income Plans Policy at:
https://www.calpers.ca.gov/page/investments/about-investment-office/policies