VALUE LINE, INC. PROFIT SHARING AND SAVINGS PLAN Investment Options

Constructing a Balanced, Diversified Asset Allocation Portfolio for VALUE LINE, INC. PROFIT SHARING AND SAVINGS PLAN Participants

Creating a balanced and diversified asset allocation portfolio is crucial for long-term financial success. This article will guide you through the four-step RAID approach to help you construct a well-rounded portfolio using the investment options available in the VALUE LINE, INC. PROFIT SHARING AND SAVINGS PLAN.

Investment Options

Here are the available investment options:

• MASSMUTUAL GUARANTEED INTEREST ACCOUNT
• AMERICAN FUNDS AMER FUNDS BALANCED FUND
• AMERICAN FUNDS AMERICAN FUNDS NEW WORLD FUND
• BLACKROCK BLACKROCK GLOBAL ALLOCATION FUND
• BNY MELLON BNY MELLON BOND MARKET INDEX FUND
• LEGG MASON CLEARBRIDGE MID CAP FUND
• WILMINGTON TRUST WILMINGTON TRUST AMRCN FD 2030 CIT
• GOLDMAN SACHS GOLDMAN SACHS SMCAP GR INSIGHTS FD
• INVESCO INVESCO GOLD & SPECIAL MINERALS FD
• INVESCO INVESCO OPPENHEIMER INTL GROWTH FD
• INVESCO INVESCO REAL ESTATE FUND
• WELLS FARGO ALLSPRING SPEC MID CP VAL FD
• NATIXIS FUNDS LOOMIS SAYLES STRATEGIC INCOME FUND
• MASSMUTUAL SELECT MASSMUTUAL BLUE CHIP GROWTH FUND
• MASSMUTUAL PREMIER MASSMUTUAL CORE BOND FUND
• MASSMUTUAL SELECT MASSMUTUAL DIVERSIFIED VALUE FUND
• MASSMUTUAL PREMIER MASSMUTUAL GLOBAL FUND
• MASSMUTUAL PREMIER MASSMUTUAL HIGH YIELD FUND
• MASSMUTUAL PREMIER MASSMUTUAL INF-PRO AND INC FUND
• MASSMUTUAL SELECT MASSMUTUAL MID CAP GROWTH FUND
• MASSMUTUAL SELECT MASSMUTUAL OVERSEAS FUND
• MASSMUTUAL SELECT MASSMUTUAL SM CAP VALUE EQUITY FD
• MASSMUTUAL SELECT MASSMUTUAL SMALL COMPANY VALUE FUND
• MFS INVESTMENT MANAGEMENT MFS UTILITIES FUND
• MASSMUTUAL SELECT MM MSCI EAFE INTL INDX FD (NRTN TR)
• MASSMUTUAL SELECT MM RSL 2000 SMCAP INDX FD (NRTN TR)
• MASSMUTUAL SELECT MM S&P 500 INDEX FD (NORTHERN TRUST)
• MASSMUTUAL SELECT MM S&P MID CAP INDEX FUND (NRTN TR)
• PARNASSUS PASNASSUS CORE EQUITY FUND
• FRANKLIN/TEMPLETON TEMPLETON GLOBAL TOTAL RETURN FUND
• PIMCO FUNDS TOTAL RETURN FUND (PIMCO)
• WELLS FARGO ALLSPRING INTERNATIONAL EQ FD

Major Asset Classes Covered

The major asset classes covered by these investment options are:

• US Stocks
• International Stocks
• Emerging Market Stocks
• Real Estate Investments (REITs)
• Bonds

Step 1: Risk Assessment

Before constructing your portfolio, it's essential to assess your risk profile. This involves determining how much you should allocate to stocks and bonds based on your risk tolerance, age, job stability, and growth expectations. For a detailed guide on how to decide your stock allocation, refer to MyPlanIQ's guide.

Step 2: Asset Allocation

Once you've assessed your risk profile, the next step is to decide how much to allocate to each major asset class. Utilize the allocation templates discussed in MyPlanIQ's asset allocation templates for 401(k) investments.

Step 3: Investment Selections

After deciding on your asset allocation, the next step is to select specific funds for each asset class. It's crucial to emphasize low-cost index funds, especially for the stock portion of your portfolio.

Step 4: Disciplined Rebalancing

Regular monitoring and rebalancing of your portfolio are essential to maintain your desired asset allocation. This involves periodically reviewing your portfolio and making necessary adjustments to ensure it aligns with your risk profile and investment goals.

Example: Constructing a Moderate Asset Allocation Portfolio

Given the available investment options, let's construct a moderate asset allocation portfolio. Since we have US stocks, international stocks, REITs, and bonds covered, we'll use the following allocation:

• 36% US Stocks
• 18% International Stocks
• 6% REITs
• 40% Bonds

US Stocks (36%)

• MASSMUTUAL SELECT MM S&P 500 INDEX FD (NORTHERN TRUST)
• MASSMUTUAL SELECT MASSMUTUAL BLUE CHIP GROWTH FUND
• MASSMUTUAL SELECT MASSMUTUAL DIVERSIFIED VALUE FUND

International Stocks (18%)

• MASSMUTUAL SELECT MM MSCI EAFE INTL INDX FD (NRTN TR)
• WELLS FARGO ALLSPRING INTERNATIONAL EQ FD

REITs (6%)

• INVESCO INVESCO REAL ESTATE FUND

Bonds (40%)

• BNY MELLON BNY MELLON BOND MARKET INDEX FUND
• PIMCO FUNDS TOTAL RETURN FUND (PIMCO)

By following these steps and utilizing the available investment options, you can construct a balanced and diversified asset allocation portfolio that aligns with your risk profile and investment goals. Regular monitoring and disciplined rebalancing will help ensure your portfolio remains on track for long-term financial success.

Basic asset allocation templates

The following asset allocation templates are based on popular lazy portfolios. These are core or major asset class-based portfolios using ultra-low-cost index funds for each asset class. Once you have decided on your proper risk asset (stocks) allocation, you can utilize these lazy portfolio templates to scale the allocations to your risk allocation level. See Asset Allocation Portfolio Templates for a guide:

The return data shown below all have the same latest date: 04/25/2025.

• Brief Performance
• Chart

Name	YTD Return	1Yr AR	3Yr AR	5Yr AR	10Yr AR	15Yr AR	20Yr AR	Inception
Four Core Asset Portfolio	-0.88%	7.97%	4.70%	7.46%	5.90%	6.80%	6.66%	6.35%
Five Core Asset Portfolio	-1.15%	7.89%	4.57%	7.32%	5.82%	6.70%	6.74%	6.54%
Three Core Asset Portfolio	-1.15%	7.88%	5.54%	7.93%	6.29%	7.06%	6.78%	6.27%
Two Core Asset Portfolio	-3.37%	7.96%	5.98%	8.41%	7.36%	8.30%	7.47%	6.76%
Yale Endowment Template	-0.55%	8.88%	3.48%	7.21%	6.21%	7.66%	7.45%	7.61%
S&P 500 Index	-5.72%	10.78%	10.28%	15.64%	11.99%	12.63%	10.12%	8.21%

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