Risk Tolerance Categories

Risk Tolerance Category: Capital Preservation

You are more interested in preserving your investment’s principal than the return you receive on your money.

This may be for you if you:

• Want investments safe from stock market fluctuations
• Desire preservation over growth potential
• Believe returns of your assets are more important than earnings
• Are satisfied with lower long term earnings if risk is less
• You would stop contributing to a 401(k) if the stock market dropped 10-20% and you had stocks in your plan

NOTE: Interest rate fluctuations will affect the value of bonds.

Suggested Fund Selection Summary: fund name, fund type, and recommended percentage of allocation.

Risk Tolerance Category: Moderate

You want better returns and are willing to invest in conservative stocks including some balance with bonds in order to lessen down-side risk.

This may be for you if you:

• Want a balance between low and higher risks
• Want a decent return with moderate risk
• Believe that balancing stocks and bonds is best
• Are satisfied with a moderate long term return that may beat inflation
• Would rebalance your plan’s diversification if the stock market dropped 10-20%

NOTE: An equal balance between stocks and bonds may not provide the best mix for good future returns.

Suggested Fund Selection Summary: fund name, fund type, and recommended percentage of allocation.

Risk Tolerance Category: Aggressive

You are not a speculator but want the best opportunity for higher returns and are willing to take some risks.

This may be for you if you:

• Will accept more risk to achieve potentially higher returns
• Will tolerate stock market swings as part of the risk to get higher returns
• Believe that the stock market will eventually outperform most other investments and is worth taking short term risks of up to a few years
• Want a high return from a portfolio of mid to large size growth companies
• View it as buying opportunity at lower prices if the stock market dropped 10-20%

NOTE: Putting all your retirement investments in stock may be more risky than you wish.

Suggested Fund Selection Summary: fund name, fund type, and recommended percentage of allocation.

Risk Tolerance Category: Conservative

You are uncomfortable with down-side risk and will take lower returns in order to preserve your capital. You realize that there are risks even with conservative investments

This may be for you if you:

• Prefer a mix of lower risk investments
• Desire safety over growth potential
• Believe that a return that keeps pace with inflation is most important
• Are satisfied with earnings typical to bond returns
• Would be concerned about making 401(k) contributions if the stock market dropped 10-20%

NOTE: There is no guarantee that investments in either stocks or bonds will keep pace with inflation.

Suggested Fund Selection Summary: fund name, fund type, and recommended percentage of allocation.

Risk Tolerance Category: Growth

You are a stock investor and are willing to allow market forces determine values in your portfolio.

This may be for you if you:

• Will accept a somewhat higher risk for potentially bigger returns
• May tolerate stock market swings as part of normal economic cycles
• Believe that stocks are the best way to achieve higher returns than banks and credit unions and still beat inflation
• Want a return consistent with long term stock portfolios
• Would view a stock market drop of 10-20% as part of the normal long term business cycle

NOTE: Banks and credit unions could yield better returns over a time period if there is a long term economic downturn.

Suggested Fund Selection Summary: fund name, fund type, and recommended percentage of allocation.