Questions from GuideStone participants and answers from GuideStone

Q. I have recently retired and all of my money is in GuideStone Funds. I feel like I need to do something, but what?
A: During times like these, it is a good idea to re-evaluate your retirement income strategy. Many retirees can look for ways to reduce their expenses, find ways to earn extra income, or delay large or discretionary expenses until market conditions improve. The important thing is to plan ahead and not to react solely based on emotion.

We are all feeling the effects of the volatile stock market we’ve witnessed over the past few weeks, and we know that investing for the long term brings with it unavoidable ups and downs along the way. However, by investing in mutual funds, like those offered by GuideStone Funds, you have the added benefit of investment diversification in a large number of companies that operate in a wide range of industries. In fact, mutual fund regulations limit the amount that a diversified mutual fund can invest in any one company. While diversification will not eliminate the possibility of investment loss, it does limit our financial exposure to the performance of any individual company in which we invest. And at GuideStone, our multi-manager investment approach provides an additional level of diversification by providing access to multiple carefully selected world-class investment management firms within a single investment fund.

Q. I am about 10 years away from retirement. What should I do now?
A: For someone who hasn't yet retired, the best medicine for market volatility is generally consistent, periodic investing. Market cycles can present bargain-buying opportunities. By investing a fixed dollar amount on a regular basis (just as many participants are doing with their GuideStone retirement accounts), you are buying more shares when prices are low and fewer when they're high. The concept is called dollar-cost averaging.* You can do it with stock, bond and money market mutual funds. No matter what your investment allocations may be, it's a helpful way to put market ups and downs in your favor.

As you approach retirement, you may want to consider moving to a more conservative investment strategy.

Q. I’m in my 30s and don’t expect to take withdrawals on any of my retirement investments until I'm 65. Is there anything different I should be doing with the current market situation, or should I just hang tight and ride it out?
A: For someone decades away from retirement, the volatility of the last few months really is immaterial. While past performance is no guarantee of future results, history has shown us that time is on your side. Think of the advice to "buy low, sell high." If you sell when the market is suffering, you'll be selling low, essentially losing money now as well as the chance to gain it back. Stick with your investment discipline, be sure to take into account how much risk you can handle, and diversify, diversify, diversify.

A potential approach for younger investors is to consider a date target fund. GuideStone Financial Resources makes available the MyDestination Funds®** through its controlled affiliate, GuideStone Funds. In these date target funds, the allocation becomes more conservative as the investor approaches his target retirement date and beyond. It also maintains an appropriate stocks-to-bonds ratio based on the number of years until retirement and even beyond retirement. Investors should monitor their accounts periodically and make sure they are making appropriate contributions to keep pace with their retirement goals.

Q. Does GuideStone have something that is guaranteed to not lose money?
A: As we mentioned above, mutual fund investing involves risk, including loss of principal. However, GuideStone Financial Resources and GuideStone Funds offer a variety of funds covering the risk spectrum, from the more conservative GuideStone Financial Resources Capital Preservation Fund and the GuideStone Funds Money Market Fund to the more aggressive line-up of GuideStone Funds that are invested completely in stocks.

Keep in mind, with less risk comes less likelihood of reward; conversely, the greater chance of reward comes with higher levels of risk. The best defense in a volatile market is to be diversified, appropriately allocated and consistently investing with a focus on the long-term.

* Dollar-cost averaging does not ensure a profit, nor does it protect against losses in a declining market. Because dollar-cost averaging involves continuous investing, investors should consider their long-term ability to continue to make purchases through periods of low price levels.

An investment in the Money Market Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency. Although the Fund seeks to maintain a value of $1.00 per share, it is possible to lose money.

**Date Target Funds attempt to achieve their objectives by investing in the GuideStone Select Funds. By investing in these fund-of-funds, you will incur the expenses of the Date Target Funds in addition to those of the underlying funds. You may invest in the Select Funds directly. Date Target Funds are also subject to the risks of the underlying funds they hold.