Investment Resolutions for 2006

Chart of the Week for December 23-29, 2005

It’s a popular time of the year to start thinking about New Year’s resolutions. Along with the other goals you set for yourself in 2006, it’s important to think about your financial well-being and retirement. Here at ICMA-RC, we offer you our top ideas for 2006 resolutions:

• Pay yourself first - Contribute a regular amount to your retirement savings plan. Be disciplined once you set this goal. If you happen to have some extra money, send it to your retirement account.
• Diversify your portfolio - You may reduce your investment risk over time by spreading your portfolio among several funds with different investment styles and objectives. In the long run, diversification lowers overall risk.
• Evaluate your risk tolerance - We have seen the equity markets return positive and negative performance over the last several years. Were you comfortable with your exposure to certain industries and sectors of the market and your portfolio’s performance? If not, consider changing the risk profile of your portfolio.
• Rebalance your portfolio - Your portfolio will certainly fluctuate throughout the year depending on the performance of various asset classes. This will in turn change the risk profile of your portfolio. Consider rebalacing your portfolio to take advantage of a rebounding asset class by selling shares of funds that have outperformed and reallocating to funds that have underperformed.
• Start now and open an IRA - Consult your tax advisor to determine which retirement plan is best for you. The earlier you start saving, the longer your money has to grow over time.

This information is being provided for educational purposes and is not intended to be construed as or relied upon as investment advice. ICMA-RC does not offer specific tax or legal advice. Individuals are advised to consider any new investment strategies carefully prior to implementing. Past performance does not guarantee future results. Investment returns and principal value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data illustrated. For performance data current to the most recent month end, contact ICMA-RC Services, LLC by calling 1-800-669-7400 or by writing to 777 North Capitol Street, NE, Washington, DC 20002-4240, or by visiting www.icmarc.org. Please consult both the current Vantagepoint Funds prospectus and MAKING SOUND INVESTMENT DECISIONS: A Retirement Investment Guide carefully for a complete summary of all fees, expenses, charges, financial highlights and investment objectives, risks and performance information prior to investing any money. Vantagepoint securities are distributed by ICMA-RC Services LLC, a broker dealer affiliate of ICMA-RC, member NASD/SIPC. For a current prospectus, contact ICMA-RC Services LLC, 777 North Capitol Street NE, Washington, DC 20002-4240. 1-800-669-7400. AC:1205-440