P&G Retirement Plans: Your Investment Choices

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Procter & Gamble (P&G) employees rely on the Savings Plan (401(k)) and Profit Sharing Trust (PST Plan) to build retirement wealth. Understanding your investment options within these plans—and their diversification rules—enables you to craft a strategy aligned with your risk tolerance, time horizon, and P&G-specific risks.  

P&G Retirement Plan Rules

The Savings Plan permits investment across its full menu at any time, providing flexibility to diversify beyond P&G stock. The PST Plan defaults to P&G common stock until age 50, when you can begin diversifying while maintaining a 40% minimum allocation. Below is a summary of options available to P&G employees:  

Money Market 

  • Money Market Fund: Designed for capital preservation, this fund invests in high-quality, short-term securities such as U.S. government obligations, commercial paper, and certificates of deposit. It offers stability and same-day liquidity, making it a low-risk choice for conservative investors.

Fixed Income

  • U.S. Short-Term Bond Index Fund: Tracks the Barclays U.S. 1-3 Year Government/Credit Bond Index, focusing on short-term government and credit bonds for cost-effective stability.

  • U.S. Intermediate-Term Bond Index Fund: Mirrors the Barclays U.S. Aggregate Bond Index, investing in a broad mix of investment-grade bonds—including government, corporate, and mortgage-backed securities—for steady income and moderate growth.

Real Return 

  • Real Return Fund: This multi-asset fund seeks to protect purchasing power by blending Treasury Inflation-Protected Securities (TIPS), global real estate investment trusts (REITs), and commodities. Its diversified approach aims to deliver returns that outpace inflation, with lower correlation to equities.

Equities 

  • Large Cap Equity Index Fund: Replicates the S&P 500, providing exposure to leading U.S. companies.

  • Global Equity Index Fund: Follows the MSCI ACWI IMI, offering broad diversification across U.S. and international markets, including emerging economies.

  • International Equity Index Fund: Tracks the MSCI ACWI ex-U.S., investing in thousands of foreign stocks for global growth potential.

  • Small Cap Equity Fund: Mirrors the Russell 2000, targeting U.S. small-cap stocks with higher growth prospects and volatility.

  • Procter & Gamble Stock: Direct investment in P&G common stock, allowing you to participate in the company’s long-term growth and dividend income.

Pre-Mixed Options

Pre-mixed portfolios offer professionally designed allocations, automatically rebalanced to maintain your chosen risk profile:

  • Income (Pre-Mixed A): 45% intermediate bonds, 20% real return, 20% global equity, 15% short-term bonds—emphasizing stability and income.

  • Growth & Income (Pre-Mixed B): 40% global equity, 35% intermediate bonds, 15% real return, 10% short-term bonds—balancing growth and income.

  • Growth (Pre-Mixed C): 75% global equity, 15% real return, 10% intermediate bonds—focused on long-term capital appreciation.

Selecting the right investment mix depends on factors like your risk tolerance, time horizon, market conditions, and diversification needs. Vaultis Private Wealth excels in working with employees of Procter & Gamble as they prepare for and transition into retirement. Our deep understanding of P&G’s retirement plans allows us to provide guidance that is both personalized and aligned with your unique circumstances.


Disclosure: This blog provides educational insights, not personalized financial, tax, or legal advice. Investments involve risks, including potential loss of principal—values may fluctuate, and past performance does not guarantee future results. Diversification and asset allocation do not ensure profit or protect against loss in declining markets. Options like P&G stock or pre-mixed portfolios carry specific risks, such as concentration or market volatility. Tax outcomes, including strategies tied to PST diversification, vary by individual circumstances; consult a tax professional. Vaultis Private Wealth is not affiliated with P&G, and views expressed are ours alone. Contact a financial advisor before making investment decisions.