Take time to understand your investments

HARRISBURG - As the financial market continues to experience turbulence and volatility, Treasurer Robin L. Wiessmann reminds Pennsylvanians to know and understand their investments.

"I cannot stress enough the importance of fiscal literacy, sound asset allocation and diversification in weathering most financial storms," Treasurer Wiessmann continued. "Individuals who understand their investment goals and tolerance for taking risk can create a sound, long-term strategy to meet their needs."

"As the market continues to fluctuate, I encourage Pennsylvanians to review the most fundamental principle of sound investing - take time to understand your investments," said Treasurer Wiessmann. "No one can truly predict where the market is headed, but you can prepare yourself by knowing what you have out there."

Asset allocation is the process of dividing assets in your portfolio among different asset types, such as stocks, bonds, real estate and cash, to try and meet a specific objective. Asset allocations should be reviewed periodically or whenever life events occur, such as marriage, birth of a child, or retirement. Diversification refers to the process of helping to reduce risk by investing in several different types of individual funds or securities. By diversifying assets among more than one security, Pennsylvanians will increase the chance that, if one investment is failing, the return of another may be rising.

Guided by fiduciary responsibilities and prudent fiscal policy, Pennsylvania Treasury Department's investment portfolios are well diversified, structured in a manner that limits exposure to current market concerns.

The Pennsylvania Treasury Department, under the leadership of Treasurer Robin L. Wiessmann, strives to achieve prudent yet competitive market returns for the Commonwealth's investments, while ensuring that those investments meet the highest fiduciary standards. Treasury also offers a wide range of programs and services to Pennsylvania families, such as helping to make college possible with the Pennsylvania College Savings Program; returning abandoned and unclaimed property to its rightful owner or heir; and funding energy efficient home improvements through the KeystoneHELP low-interest loan program.

For more information about Treasurer Wiessmann and the Pennsylvania Treasury Department, visit www.patreasury.org