As many may already know, Lockheed Martin has a very competitive benefits package. If you work at Lockheed Martin or know someone who works at Lockheed Martin, it is important to be informed of some changes in the very near future. They have recently announced changes to the core investments in many of its savings plans. Since these changes may impact employees and retirees financial/retirement plan, it’s critical to know what’s going on and what actions should be taken. Here’s some information to get started.
Essentially, the company is making four key changes to its plans:
- Eliminating 8 core funds that are underused or available in other ways.
- Commodities Fund (Diversifier)
- Global Real Estate Fund (Diversifier)
- High-Yield Bond Fund (Diversifier)
- Emerging Markets Indexed Equity Fund (Stock)
- International Developed Markets Equity Fund (Stock)
- U.S. Equity Fund (Stock)
- Government Short-Term Investment Fund (Bond)
- Treasury Inflation Protected Securities (Bond)
- Renaming actively managed funds and changing some investments and benchmarks.
- Introducing a new bond fund.
- Strengthening target-date funds to improve diversification and performance, including adding two new asset categories: defensive equity and private real estate.
What You Need To Do
Depending on the makeup of your specific savings plan and what you want to do, you may not need to take action on these changes. For example, if you have some of the core funds that will be eliminated and want your balances to be transferred to a target-date fund, you don’t need to do anything. If you don’t want that transfer to take place, you’ll need to move your balances and future contributions to a new core fund by April 8, 2021.
If you aren’t sure what the right choice is for your unique situation and goals, this is an ideal time to review your risk tolerance, asset allocation, and overall investment strategy to determine if you should opt for a target-date fund or choose your own investment mix.
Another important change to note is that all employees who contribute to the Lockheed Martin savings plans will have their future contribution investment elections reset on May 21, 2021. Again, if you do nothing, your future contributions will be invested in a target-date fund based on an expected retirement age of 65. If you don’t want this to happen, you’ll need to make some changes to your investment fund holdings by May 20, 2021.
For detailed information about these changes, Lockheed Martin sent out a guide, which can be found here, and provided answers to frequently asked questions.They had a live audio cast that included a Q&A session on March 17, 2021. There is a recorded replay available for those who were not able to attend. Don’t hesitate to reach out to your HR department for more information.
If you aren’t sure what steps to take and would like someone familiar with both your goals and the Lockheed Martin plans to walk you through your options, Security Financial Management is here to help. Schedule a call today or reach out to us at SFM@sfmadvisorgroup.com.
About Security Financial Management
Security Financial Management is an independent financial services firm dedicated to delivering exceptional service built on reliability and trust. With 3 locations in Central Florida and 1 in Rochester, MN, SFM has been partnering with clients for over 25 years, providing comprehensive financial planning. To learn more about Security Financial Management, connect with them on LinkedIn.
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