GuideStone participants who kept perspective rewarded by 2009's brightened financial markets

December 14, 2009

Despite turbulent financial markets in 2008 and early 2009, average account balances in GuideStone’s 403(b) retirement plans rose significantly from the market’s low in March until the end of November.

As of the second quarter of this year, 403(b) assets as a whole began to experience notable growth from the recent upswing in the stock market. GuideStone participants saw average account balances grow over 40% from the low point of the market on March 9 through the end of November.

“What we have witnessed in the last three quarters of 2009 is the power of market growth with continued contributions,” GuideStone Chief Operating Officer John R. Jones said.

Investors who maintained their asset allocation and continued making regular contributions during the recent downturn were able to capitalize during market low points by purchasing shares at decreased prices. Consequently, as the market conditions improved and the shares increased in value, investors witnessed substantial growth in their accounts. This investment technique is commonly referred to as “dollar cost averaging.” Using this process would also be a good way for those who have been sitting on the sidelines to get back into the market.

“Our perspective should be on the long-term, not on making emotional short-term changes each and every time the market drops or rises,” Jones said. “For long-term retirement investors, the best course of action — in good times and bad — is to focus on long-term goals and make steady contributions to a portfolio that is invested based on the investor’s age and risk tolerance.”

GuideStone makes resources available that investors can use to make sure they are on track and invested appropriately. Those include:

• Participant account statements with personalized charts that can show the participant’s projected future account value and estimated retirement income based on current contributions. It also provides a clear snapshot of a participant’s asset allocation. Participants can access their statements by logging into their account at www.MyGuideStone.org and selecting the View and Print eStatements link.
• GPS: Guided Planning Services* is an online tool made available by GuideStone Advisors to participants via MyGuideStone™. The service helps participants identify gaps in their retirement planning and offers advice on how to reallocate funds to stay on track.
• The MyDestination Funds® family of date target funds that allow investors to choose a Fund that correlates to the year closest to their anticipated retirement date. The Fund provides them with an age-appropriate blend of equity and fixed-income investments that grow more conservative as they move toward and through retirement.

“These are historic times in our economy,” Jones said. “Even as we see improvements in the stock and bond markets, unemployment remains high and uncertainty is still a part of the equation. As we press forward in this new economy, we at GuideStone continue to focus our perspective on our Lord, and on serving those who serve Him.”

* Financial advice provided by GuideStone Advisors, a controlled-affiliate of GuideStone Financial Resources.

The MyDestination Funds (“Funds”) attempt to achieve their objectives by investing in the GuideStone Select Funds. The Funds are managed to a retirement date (“target date”) by adjusting the percentage of fixed-income securities and equity securities to become more conservative each year until reaching the retirement year and then approximately 15 years thereafter. The target date in the name of the Funds is the approximate date when an investor plans to start withdrawing money. By investing in the Funds you will also incur the expenses and risks of the underlying Select Funds. The principal risks of the Funds will change depending on the asset mix of the Select Funds in which they invest. You may directly invest in the Select Funds. The Funds’ value will go up and down in response to changes in the share prices of the investments that they own. The amount invested in the Fund is not guaranteed to increase, is not guaranteed against loss, nor is the amount of the original investment guaranteed at the target date. It is possible to lose money by investing in the Funds.

GuideStone Funds shares are distributed by PFPC Distributors, Inc., a registered broker-dealer and underwriter of the funds, 760 Moore Road, King of Prussia, PA.

Dollar cost averaging does not assure a profit or protect you against a loss in a declining market. Because such plans involve making continuous investments regardless of fluctuating share prices, you should consider your financial ability to continue making purchases through periods of low prices.