your retirement savings

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1 your retirement savings Why Investment Balance Matters 3 How Much Help Do You Want? 8 Ways You Can Get Help With Investment Balance 10 Click here for printer-friendly version

2 At Kaiser Permanente, financial wellness is an important part of your total health. The Kaiser Permanente retirement savings plans can play a key role in your pursuit of financial wellness. There are some basic principles that give you a better chance for investment success in your retirement savings plan account. One of them is to spread your money among different types of investments. In other words, investing with balance, or diversifying. This guide is designed to help you understand asset allocation and investing with balance, and introduces you to a range of tools and services to help you diversify your retirement savings plan investments. 2

3 Why Investment Balance Matters A sound investment strategy starts with your asset allocation the mix of stock, bond, short-term, and other investments in your account. Your asset allocation (also known as your investment mix ) should be built upon reasonable expectations for risk and return, as well as a variety of investment types, to avoid unnecessary risks. These ideas are based on the concept of balance. Because all investments involve risk, you may manage the balance between risk and potential reward through your investment mix. In general: The mix of stock, bond, short-term, and other investments in your account determines most of your account's return as well as its volatility. Volatility refers to how dramatically an investment s value may go up and down. Trying to avoid volatility by not investing in stocks might reduce the return on your investments, which could expose your account to other types of risk. You could fall short of an objective or become subject to inflation risk the chance that your investments will not keep pace with the rising cost of living. Realistic expectations about risk and return are essential in choosing an investment mix. 3

4 What Types of Investments Can You Choose? The retirement savings plan offers you a range of investment options in each of the following asset classes, as well as options that invest in a mix of assets. Stocks, which seek long-term growth, are generally the most volatile investments, but also provide the greatest potential return. Bonds, which seek to provide income, are generally less volatile than stocks. Short-term investments, or cash investments, seek to preserve the original investment, and are the least volatile. For more information on your plan s investment options: 1. Log on to your account at vanguard.com/retirementplans. 2. Select the Research Funds tab. (If you have multiple accounts at Vanguard, you may need to select Employer plans first.) 4

5 Your Investment Mix Determines Your Volatility The chart below, which shows investments in U.S. stocks and U.S. bonds, illustrates the historical return and volatility of various investment mixes. The Mixture of Assets Defines the Spectrum of Returns Best, worst, and average returns for various stock/bond allocations, Portfolio allocation 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Bonds Stocks Percentage of annual return % 49.8% 45.4% 41.1% 36.7% 32.6% 31.2% 32.3% 29.8% 28.4% 27.9% 5.5% 6.1% 6.8% 7.4% 7.9% 8.4% 8.9% 9.3% 9.6% 9.9% 10.2% 8.1% 8.2% 10.1% 14.2% 18.4% 22.5% 26.6% 30.7% 34.9% 39.0% 43.1% Best returns Average returns Worst returns Past performance is no guarantee of future returns. The performance of an index is not an exact representation of any particular investment, as you cannot invest directly in an index. Stocks are represented by the Standard & Poor's 90 Index from 1926 through March 3, 1957; the S&P 500 Index from March 4, 1957, through 1974; the Wilshire 5000 Index from 1975 through April 22, 2005; and the MSCI US Broad Market Index thereafter. Bonds are represented by the S&P High Grade Corporate Index from 1926 through 1968; the Citigroup High Grade Index from 1969 to 1972; the Barclays U.S. Long Credit AA Index from 1973 through 1975; and the Barclays U.S. Aggregate Bond Index thereafter. Source: Vanguard. To learn more, view a short video about investing with balance at vanguard.com/balancevideo. A note about risk All investing is subject to risk, including the possible loss of the money you invest. For example: Stocks are subject to market risk, and their prices go up or down with the stock market and news about the economy or world events. Bonds are subject to the risk that an issuer will fail to make payments on time, or that bond prices will rise or fall. Short-term investments are subject to the risk that their value may not keep up with inflation. In a diversified investment mix, gains from some investments may help offset losses from others. However, diversification does not ensure a profit or protect against a loss. 5

6 Investment Balance Helps Manage Volatility The following chart illustrates the annual returns for stocks, bonds, short-term investments, and a balanced portfolio over the past 20 years. As you can see, stocks historically have fared better than bonds and short-term investments on average. However, stocks can also be volatile, which means there are sometimes dramatic increases or decreases in returns. Owning a balanced mix of investments can help offset the drastic ups and downs that stocks alone experience. Why a Balanced Investment Mix Matters Total annual returns, Percentage of annual return % Stocks 100% Bonds 100% Short-term 50% Stocks/50% Bonds Past performance is no guarantee of future returns. The performance of an index is not an exact representation of any particular investment, as you cannot invest directly in an index. For U.S. stock market returns, the chart reflects the Wilshire 5000 Index from 1995 to April 22, 2005, and the MSCI US Broad Market Index thereafter. For U.S. bond market returns, the chart reflects the Barclays U.S. Aggregate Bond Index from 1995 to 2009, and the Spliced Barclays U.S. Aggregate Float Adjusted Bond Index thereafter. For short-term investment returns, the chart reflects the Citigroup 3-Month T-Bill Index. Source: Vanguard. For more information on your plan s investment options: 1. Log on to your account at vanguard.com/retirementplans. 2. Select the Research Funds tab. (If you have multiple accounts at Vanguard, you may need to select Employer plans first.) 6

7 Your Investment Mix Is Unique to You Choosing an appropriate investment mix is not a one-size-fits-all exercise. Consider an investment mix that suits your financial goals, risk tolerance, and time horizon. Here are some examples: John s Investment Mix: 100 percent in a short-term investment. Concerns What John may want to do John is 30 years old and his entire account is invested conservatively. It is likely his account will not experience significant growth, especially considering the amount of time he probably has until retirement. John may fall short of his investment goals. He should consider his financial goals and, based on those goals, he might want to add some stock and bond investments to his account. If stocks or bonds experience a significant downturn, his account should have time to recover. Judy s Investment Mix: 100 percent in a stock fund. Concerns What Judy may want to do Judy is 60 years old and runs the risk that the value of her account could drop significantly, which could delay her retirement. Because she is approaching retirement and plans to start accessing her account soon, Judy may want to consider reducing the stock investments in her retirement savings plan account and adding bonds and/or short-term investments to help balance the risk of volatility in her account. George s Investment Mix: 100 percent in a target date fund. Concerns What George may want to do George is 45 years old and may be better protected from the risks associated with investing in only one specific type of investment. Still, his financial circumstances and investment goals could change, causing his ideal asset allocation to shift from his actual allocation. He should check his investments from time to time if his savings goals or circumstances change to make sure his investment mix is still appropriate. 7

8 How Much Help Do You Want? Figuring out risk and building the right investment mix can be complicated. The retirement savings plan offers several tools and services that can help. I d like a lot of help balancing my investments from experts. YOU MIGHT CONSIDER KP Retirement Path Funds Learn More or Get Started Page 10 YOU MAY BENEFIT IF YOU Want a diversified investment mix by investing in a single fund. Want professional management of your retirement savings plan account. Don t want to periodically change your investment mix yourself as you get closer to retirement. Want an easier solution to investing. Potential time commitment to get started: LOW Vanguard Managed Account Program, powered by Financial Engines Learn More or Get Started Page 12 Don t want to make investment decisions for your retirement savings plan account. Want professional management of your personal account in the retirement savings plan. Are willing to pay an additional fee for professional management of your retirement savings plan account. Don t have a Vanguard Brokerage Option (VBO ) account. Potential time commitment to get started: LOW to MEDIUM I want to do it myself but need some help. YOU MIGHT CONSIDER Vanguard Financial Planning Services Learn More or Get Started Page 14 YOU MAY BENEFIT IF YOU Are at least age 40. Are interested in consulting with a Certified Financial Planner professional to help you make investment decisions. Want help making a broad financial plan for saving for retirement. Are willing to complete a comprehensive questionnaire. Prefer to not pay for financial assistance. 8 Potential time commitment to get started: MEDIUM to HIGH

9 I want to do it myself but need some help. YOU MIGHT CONSIDER Personal Online Advisor, powered by Financial Engines Learn More or Get Started Page 16 YOU MAY BENEFIT IF YOU Want to use your own discretion on whether, how, and when to implement any recommendations. Have assets outside of the retirement savings plan that you want factored into the recommendations. Prefer an online tool to provide investment advice. Prefer to not pay for investment assistance. Potential time commitment to get started: MEDIUM to HIGH Vanguard s Investor Questionnaire Learn More or Get Started Page 18 Would like information to supplement other tools. Want to choose your own investments, but want help determining an appropriate investment mix. Want the flexibility to use the tool at any time as your personal circumstances change. Prefer an online tool to provide investment assistance. Prefer to not pay for investment assistance. Potential time commitment to get started: MEDIUM to HIGH Online Educational Resources Learn More or Get Started Page 20 Would like information to supplement other tools. Are comfortable making your own investment decisions. Want to access information to help you make decisions. Prefer an online tool to provide investment assistance. Prefer to not pay for investment assistance. Potential time commitment to get started: MEDIUM to HIGH I can manage this myself. YOU MIGHT CONSIDER Vanguard Brokerage Option (VBO) Learn More or Get Started Page 21 YOU MAY BENEFIT IF YOU Are an experienced investor or are working with a financial advisor who wants to invest in funds outside the retirement savings plan investment lineup. Are willing to research investment funds on your own (or your financial advisor selects investments for you). Are willing to pay commissions, expenses, and costs associated with a brokerage account. Potential time commitment to get started: HIGH 9

10 Ways You Can Get Help With Investment Balance KP Retirement Path Funds An All-in-One Investment Strategy for Retirement Savings Potential time commitment to get started: LOW How they work The KP Retirement Path Funds provide an all-in-one investment strategy for retirement savings. Each KP Retirement Path Fund has a year in its name, such as KP Retirement Path Fund 2030 or KP Retirement Path Fund This refers to the approximate year (the target date) an investor in the fund might expect to retire and leave the workforce (generally assumed to be age 65). The funds invest in a diversified mix of asset classes and strategies, and employ an asset allocation that automatically adjusts to become increasingly conservative over time. The funds are designed to help you achieve the appropriate balance between long-term capital growth, inflation protection, and current income for each stage of your savings career. Keep in mind that KP Retirement Path Funds are subject to the risks of their underlying funds. An investment in a KP Retirement Path Fund is not guaranteed at any time, including on or after the target date. 10

11 What you get The KP Retirement Path Funds give you a choice of ten all-in-one investment funds. Each KP Retirement Path Fund invests in a diversified combination of underlying mutual funds. The underlying mutual funds are invested in a wide range of asset classes including stocks, bonds, and short-term investments. What you do Consider choosing the fund with the target date closest to the year in which you will reach age 65. If you plan to retire significantly earlier or later than age 65, consider selecting a KP Retirement Path Fund with a target date closest to that date. Because your financial goals change over time, it is a good idea to periodically review the investment mix of your selected KP Retirement Path Fund to make sure it continues to match your goals and risk tolerance. You may change funds at any time. Is this right for you The asset allocation for each fund will automatically adjust from a more aggressive investment mix to a more conservative investment mix as the target date approaches. What you pay The cost for investing in a KP Retirement Path Fund comes in the form of an expense ratio, which is expressed as a percentage of the fund s assets. How to learn more or to get started For more information about the KP Retirement Path Funds: 1. Log on to your account at vanguard.com/retirementplans. 2. Select the Research Funds tab. (If you have multiple accounts at Vanguard, you may need to select Employer plans first.) You can also learn more about the KP Retirement Path Funds at kp-funds.com or view a video on KP Retirement Path Funds at vanguard.com/rpfundsvideo. To start investing in a KP Retirement Path Fund: 1. Log on to your account at vanguard.com/retirementplans. 2. Select Manage my money. (If you have multiple accounts at Vanguard, you may need to select Employer plans first.) 3. Select Change my investments. 11

12 Vanguard Managed Account Program Professional Management of Your Retirement Savings Plan Account Potential time commitment to get started: LOW to MEDIUM How it works The Vanguard Managed Account Program, powered by Financial Engines, provides professional investment advice and ongoing professional investment management for your retirement savings plan account at Vanguard. The program invests your retirement savings plan account in funds available under the retirement savings plan and periodically makes changes to your investment mix to suit your goals. If you are willing to provide additional information, the program also considers money you ve saved outside of the retirement savings plan when investing your retirement savings plan account. What you get You ll receive professional investment management and quarterly progress reports. What you do Once you enroll in the program, you should monitor the progress of your investments to ensure they continue to meet your financial goals. Is this right for you Generally, this program will choose from the index funds available in the retirement savings plan. If you are interested in other investment approaches, another service may be better suited for your needs. You may enroll in or cancel your enrollment in the Vanguard Managed Account Program at any time. This program manages only investments in your retirement savings plan account. It does not manage money in nonqualified retirement savings plans or nonretirement plans. (Although it does consider nonqualified plan and nonretirement plan assets when managing investments in your retirement savings plan.) You can review a proposed investment mix before any changes are made to your account. Once you approve the investment mix, the Vanguard Managed Account Program will manage the investment of your account. The fee for this program is in addition to the expense ratios for the investment funds in your account. The Vanguard Managed Account Program is not available if you want to invest part of your retirement savings plan account yourself or if you have a Vanguard Brokerage Option (VBO) account. 12

13 What you pay This program is free for the first $10,000 in your account and for any account balances of less than $10,000. The annual fee is determined based on the following chart: VANGUARD MANAGED ACCOUNT PROGRAM FEES 0.00% of account balance per year for the first $10, % of account balance per year for the next $90, % of account balance per year for the next $150, % of account balance per year for the next $250, % of account balance per year for amounts over $500,000 The cost for investing in a fund comes in the form of an expense ratio, which is expressed as a percentage of the fund s assets. How to learn more or to get started 1. Log on to your account at vanguard.com/retirementplans. 2. Select Review my performance. (If you have multiple accounts at Vanguard, you may need to select Employer plans first.) 3. Select Get help planning for retirement. 4. Select Let Vanguard Help to learn more. 5. Select Get Started under Vanguard Managed Account Program to get started online. Or call a Managed Account specialist at Monday through Friday from 5:30 a.m. to 6 p.m. Pacific time (8:30 a.m. to 9 p.m. Eastern time). 13

14 Vanguard Financial Planning Services A Thorough Financial Review from a CFP Professional Potential time commitment to get started: MEDIUM to HIGH How it works Vanguard Financial Planning Services provides an in-depth financial plan and a phone consultation with a Certified Financial Planner (CFP) professional from Vanguard if you are age 40 or older at no charge. The financial plan will include a customized investment mix strategy, specific investment recommendations, and a savings analysis all designed to help you manage your account on your own. What you get After you complete a comprehensive questionnaire about your retirement goals and investment portfolio, you ll schedule a phone consultation with a financial planner and receive a financial plan. Your planner can recommend an asset allocation strategy for your situation, help you choose investment options, determine whether your current savings rate will help you meet your retirement goals, suggest what to do if there s a projected shortfall, and estimate how much you can safely spend each year in retirement. Even if you are already using another advice service, you may still benefit from the analysis and consultation provided by a Vanguard Financial Plan. Your assigned financial planner will be a salaried professional who receives no commission for his or her recommendations. 14

15 What you do After you complete a questionnaire about your retirement goals and investment portfolio (including assets outside of your retirement savings plan at Vanguard or at other institutions), you ll schedule your phone consultation and receive your financial plan. After the telephone consultation, you can decide whether you want to implement any of the recommendations. You may implement them over the phone by calling or by logging on to your account at vanguard.com/retirementplans. Is this right for you You will receive a detailed financial plan with specific recommendations from a CFP professional and you can discuss investment options and savings with your planner. You will still be responsible for approving or rejecting any recommended actions. The financial planner can help you implement your decisions. Assets held outside of Vanguard can be considered when developing your financial plan. The plan will not provide asset allocation recommendations for outside investments. Even if you implement the recommendations from your financial plan, you should still review your account from time to time to make sure it is still in line with your objectives specifically if your financial circumstances change. You may need to rebalance your investments to reach your financial goals. What you pay There is no fee for this service. The cost for investing in a fund comes in the form of an expense ratio, which is expressed as a percentage of the fund s assets. How to learn more or to get started 1. Log on to your account at vanguard.com/retirementplans. 2. Select Review my performance. (If you have multiple accounts at Vanguard, you may need to select Employer plans first.) 3. Select Get help planning for retirement. 4. Select Do It Yourself to learn more. Or to get started, call Vanguard at Monday through Friday from 5:30 a.m. to 6 p.m. Pacific time (8:30 a.m. to 9 p.m. Eastern time). An associate will discuss the service and send you a link to the online questionnaire. 15

16 Personal Online Advisor An Online Review of Your Investment Portfolio Potential time commitment to get started: MEDIUM to HIGH How it works Personal Online Advisor, powered by Financial Engines, provides investment recommendations for you from among the funds available in the retirement savings plan. What you get You ll receive online investment advice and retirement savings projections. If you provide information about your outside investments, Personal Online Advisor will consider those assets in addition to your retirement savings plan account. This service forecasts your chances of reaching your retirement goals, provides investment option recommendations, and helps you monitor your retirement savings plan account investments. What you do Go online and enter your personal information and your outside investments. Then review your personalized recommendations and model what-if scenarios. Is this right for you Advice is provided through an online tool. This tool will recommend the index funds available in the retirement savings plan. If you are interested in other investment approaches, another tool may be better suited for your needs. This program provides recommendations only for investments in your retirement savings plan account. It does not provide recommendations for money in nonqualified retirement savings plans or nonretirement plans. (Although it does consider assets in these plans when making recommendations for investments in your retirement savings plan.) To have outside assets considered when receiving advice, you must enter those outside investments into the online tool. If you decide to implement the recommendations, you can do so with a single click within Personal Online Advisor. Even if you implement the recommendations from this online tool, it is a good practice to review your account from time to time to make sure it is still in line with your financial goals specifically if your financial circumstances change. You may need to rebalance your investments to reach your financial goals. 16

17 What you pay There is no fee to use this tool. The cost for investing in a fund comes in the form of an expense ratio, which is expressed as a percentage of the fund s assets. How to learn more or to get started 1. Log on to your account at vanguard.com/retirementplans. 2. Select Review my performance. (If you have multiple accounts at Vanguard, you may need to select Employer plans first.) 3. Select Get help planning for retirement. 4. Select Do It Yourself to learn more. 5. Select Get Started under Personal Online Advisor to get started online. 17

18 Vanguard s Investor Questionnaire A Suggested Investment Mix Potential time commitment to get started: MEDIUM to HIGH How it works The questionnaire recommends an investment mix the mix of stocks, bonds, and short-term investments based on your answers to 11 quick questions. You can then use the suggested mix to select investments in the retirement savings plan. What you get A suggested investment mix. You can choose to use the investment mix as is, or customize it if you want to invest more aggressively or conservatively. What you do Answer the questionnaire about your investment objectives, time horizon, and risk tolerance. No financial knowledge is needed. Please note that this questionnaire does not recommend specific investment options. Rather, it can help you decide the percentage of your account to invest in stocks, bonds, and short-term investment options in the retirement savings plan. You can retake the questionnaire at any time, including when your circumstances change. 18

19 Is this right for you This tool recommends a mix of stocks, bonds, and short-term investments, which you can use to select funds from the available investment options in the retirement savings plan. It does not recommend specific investment options. You can adjust the suggested investment mix if you decide it does not fit your needs exactly. You can use the questionnaire at any time. It is a good practice to review your account investments from time to time to make sure they are still in line with your objectives. You may need to rebalance your investments to reach your financial goals. You can use this tool in addition to any other tool or resource. What you pay There is no fee to use this tool. The cost for investing in a fund comes in the form of an expense ratio, which is expressed as a percentage of the fund s assets. How to learn more or to get started Go to vanguard.com/assetmix to learn more or to complete the questionnaire. For more information on your plan's investment options: 1. Log on to your account at vanguard.com/retirementplans. 2. Select the Research Funds tab. (If you have multiple accounts at Vanguard, you may need to select Employer plans first.) If you d like to change your investments based on your recommended investment mix: 1. Log on to your account at vanguard.com/retirementplans. 2. Select Manage my money. (If you have multiple accounts at Vanguard, you may need to select Employer plans first.) 3. Select Change my investments. 19

20 Online Educational Resources Information to Help Make Your Own Decisions Potential time commitment to get started: MEDIUM to HIGH How it works As a participant in the retirement savings plan, you have 24/7 access to a number of online educational materials and financial planning tools that can help you better manage your account. What you get Financial articles, videos, podcasts, calculators, and other material on numerous financial topics. You can even use Vanguard s free financial planning tools for extra help. What you do Access any of the educational resources available to you at any time for online educational materials and a variety of financial planning tools. Is this right for you You may want to consider education if you are comfortable managing your own investments. Educational resources do not provide any advice or fund recommendations. They provide information and insights to help you make your own decisions. You can use this tool in addition to any other tool or resource. What you pay There is no fee to use these tools. The cost for investing in a fund comes in the form of an expense ratio, which is expressed as a percentage of the fund s assets. How to learn more or to get started Log on to your account at vanguard.com/retirementplans, or visit these resources: MoneyWhys Education and news center: vanguard.com/moneywhys Financial Planning Tools and Resources: vanguard.com/kpresources Financial Wellness Video Series: vanguard.com/kpvideoseries Vanguard s principles for investing success: vanguard.com/investingprinciples KP Retirement Plan Funds: kp-funds.com For more information on your plan's investment options: Log on to your account at vanguard.com/retirementplans. 2. Select the Research Funds tab. (If you have multiple accounts at Vanguard, you may need to select Employer plans first.)

21 Vanguard Brokerage Option (VBO) More Choice For the Experienced Investor Potential time commitment to get started: HIGH How it works If you are looking for investment options beyond those offered through the retirement savings plan, you may want to consider VBO. VBO allows you to choose mutual funds from outside the retirement savings plan. For example, you can access mutual funds that focus on a specific industry or type of business. What you get You can invest in mutual funds not offered through the retirement savings plan. VBO can benefit experienced investors. Through VBO you have access to thousands of mutual funds from hundreds of fund families. What you do You can move money from the retirement savings plan s investment options to the VBO settlement fund, which is Vanguard Prime Money Market Fund. You can use the money in the settlement fund to buy mutual fund shares in your VBO account. Is this right for you You may want to consider VBO if you are comfortable managing your investments. Kaiser Permanente and Vanguard do not review or monitor the mutual funds available through VBO. You are solely responsible for researching, selecting, and monitoring your investments. You have more investment choices available to you through VBO than the investment options available under the retirement savings plan. You can only invest in mutual funds not offered through the retirement savings plan. The risks involved with investments in a VBO account are substantially different than the risks associated with the investment options available through the retirement savings plan. You can invest up to 50 percent of your fully vested account in VBO. To establish a VBO account you must transfer at least $1,000 to the VBO account. There is no minimum required for subsequent investments in VBO. It is a good practice to review the investments in your account from time to time to make sure they are still in line with your objectives. You may need to rebalance your investments periodically. 21

22 What you pay You must pay commissions and other costs associated with the specific investments you choose through the VBO. How to learn more or to get started 1. Log on to your account at vanguard.com/retirementplans. 2. Select the Plan Details tab. (If you have multiple accounts at Vanguard, you may need to select Employer plans first.) 3. Select Plan Communications from the dropdown menu under the Plan Details tab to review the VBO materials available. Or call Vanguard at Monday through Friday from 5:30 a.m. to 6 p.m. Pacific time (8:30 a.m. to 9 p.m. Eastern time). An associate can provide you with an account application to complete and return to Vanguard. Other options and tools may be available to you depending on your individual circumstances. Connect with Vanguard You can access your account, research funds, and make changes to your account in any of these ways: Online. Log on to your account at vanguard.com/retirementplans. Not yet registered for immediate, secure online account access? Go to vanguard.com/register. You will need your plan number, which you can find on the Retirement page of My HR (kp.org/myhr). On your mobile device. Go to vanguard.com/bemobile to download the Vanguard app so you can access your account on the go. By phone. Call to reach Vanguard s 24-hour interactive VOICE Network. You ll need your Social Security number and a personal identification number (PIN) to use VOICE. To create a PIN, follow the prompts. Or you can speak with a Vanguard Participant Services associate Monday through Friday from 5:30 a.m. to 6 p.m. Pacific time (8:30 a.m. to 9 p.m. Eastern time). 22

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24 For more information about any fund available through the Kaiser Permanente retirement savings plans, including investment objectives, risks, charges, and expenses, call Vanguard at to obtain a prospectus. The prospectus contains this and other important information about the fund. Read and consider the prospectus information carefully before you invest. You can also download Vanguard fund prospectuses at vanguard.com. An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although a money market fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in such a fund. The Vanguard Group has partnered with Financial Engines Advisors LLC to provide subadvisory services to the Vanguard Managed Account Program and Personal Online Advisor. Financial Engines Advisors LLC is an independent, federally registered investment advisor that does not sell investments or receive commission for the investments it recommends. Advice is provided by Vanguard Advisers, Inc. (VAI), a federally registered investment advisor and an affiliate of The Vanguard Group, Inc. (Vanguard). Eligibility restrictions may apply. Vanguard is owned by the Vanguard funds, which are distributed by Vanguard Marketing Corporation, a registered broker-dealer affiliated with VAI and Vanguard. Neither Vanguard, Financial Engines, nor their respective affiliates guarantee future results. Vanguard Financial Planning Services are provided by Vanguard Advisers, Inc., a federally registered investment advisor. Eligibility restrictions may apply. Vanguard, Connect with Vanguard, MoneyWhys, VBO, and vanguard.com are trademarks of The Vanguard Group, Inc. Financial Engines is a trademark of Financial Engines, Inc. All rights reserved. Used with permission. Vanguard Brokerage Services is a division of Vanguard Marketing Corporation, Member FINRA. Vanguard Marketing Corporation is the distributor of the Vanguard Funds. The KP Retirement Path Funds are distributed by SEI Investments Distribution Co., which is not affiliated with Callan Associates or Vanguard. BBBBJNRS