my work my Investments Canada Post Defined Contribution Programs and Group Retirement Savings Plans

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1 my work my Investments Canada Post Defined Contribution Programs and Group Retirement Savings Plans

2 my money. my tools. As a member of a company group retirement savings plan, you have access to online planning tools that can help you build a better future. The my money tools allow you to learn more about your group plan s investment options, make changes to your investment selections and access financial planning tools. To access these tools: Sign in to mysunlife.ca using your personal sign-in/access ID and password. On the Home page, select my financial centre. Know your responsibilities As a member of a group retirement savings plan, you are responsible for making investment decisions regarding your plan. We ve provided tools and information to assist you in making these decisions. You should also decide if seeking investment advice from a qualified individual makes sense for you. Your sign-in/access ID and password Don t have a sign-in/access ID and password? Customer Care Centre and Automated Telephone System If you don t have access to the internet or you would like to talk with one of Sun Life Financial s Customer Care Centre representatives, call any business day between 8 a.m. and 8 p.m. ET. You can also use this number to connect to the Automated Telephone System 24 hours a day, 7 days a week. Refer to your welcome letter or your statement for your account number; go to mysunlife.ca; select Register; and follow the instructions provided. If you are a new employee Sun Life Financial will send you a Welcome letter including your personal account number by mail. Sign in to mysunlife.ca using your account number and select Register to create a personalized profile with a sign-in/access ID and password. In the meantime, please use the following generic access ID and password to access the online tools. User ID: Password: Forgot your sign-in/access ID and password? Simply go to mysunlife.ca, and select the appropriate links under Sign-in help. Group Retirement Services are provided by Sun Life Assurance Company of Canada, a member of the Sun Life Financial group of companies. Sun Life Financial 2

3 Determine your retirement portfolio and get started You can access Sun Life Financial s Plan Member Services website to choose or update the investment options in your retirement portfolio. Before you do this, follow these steps to ensure your investment strategy is right for you. Step 1 Getting started Sign in to mysunlife.ca using your sign-in/access ID and password. On the Home page, select my financial centre. Step 2 What type of investor are you? To determine what type of investor you are ( Do it for me, Help me do it or Do it myself ) and know the steps to make your investment selection, please refer to the Choose your investment approach section of this guide. Step 3 What s your vision of retirement? Planning can be easy with the Retirement planner. The planner helps you determine how much you need to save now to provide you with your desired income level at retirement. You can adjust some of the parameters, and as they change over time, use the planner to update your calculations to see if you are on track to achieve your retirement goals and determine if any changes are necessary to reach them. To access this tool, select my money tools under the Resource Centre drop-down menu followed by Retirement planner. Step 4 Learn about your investment options You can learn more about the investment options offered in your Plan through Morningstar, a leading provider of investment news and analysis. Under the Accounts drop-down menu, select Investment performance, and then click on each fund. Step 5 Choose or update your investments To choose your investments as a new member, please complete the enrolment form. If you want to update your investment selections after your initial enrolment, select Change investments under the Requests drop-down menu. You can also update your account by calling Sun Life Financial s Customer Care Centre at any business day from 8 a.m. to 8 p.m. ET. To move existing account balances: Select Move my money to different funds under the I want to: section To change your current investment allocation: Select Change how my future contributions will be invested under the I want to: section There are no charges for transfers; however, a two per cent fee may be charged if you make a transfer into a fund followed by a transfer out of the same fund within 30 calendar days. 3 Sun Life Financial

4 Investment fund options and fees at-a-glance Your plan offers a range of investment options to choose from. The tables below show your Plan s fund lineup and fund management fees (FMFs). The funds are displayed based on different approaches to investing described on page 6 of this guide. Do it for me option Fund category Segregated fund line up FMFs* Target date BlackRock LifePath Index 2020 Segregated Fund BlackRock LifePath Index 2025 Segregated Fund BlackRock LifePath Index 2030 Segregated Fund BlackRock LifePath Index 2035 Segregated Fund BlackRock LifePath Index 2040 Segregated Fund BlackRock LifePath Index 2045 Segregated Fund BlackRock LifePath Index 2050 Segregated Fund BlackRock LifePath Index 2055 Segregated Fund BlackRock LifePath Index Retirement Segregated Fund % 0.35% 0.41% 0.46% 0.46% 0.46% 0.46% 0.52% 0.30% Note: The investments are listed by asset class on the mysunlife.ca website, instead of by investment approach as presented in this guide, however you will still be able to find all of the same funds. Help me do it option Fund categories Segregated fund lineup FMFs* Money market Sun Life Financial Money Market Segregated Fund 0.19% Bond (fixed income) TDAM Canadian Bond Index Segregated Fund 0.19% Canadian equity TDAM Canadian Equity Index Segregated Fund 0.20% Global equity MFS Global Equity Segregated Fund 0.60% * FMFs as at June 12, The FMFs displayed in this document do not include the applicable sales tax. However, these taxes are charged to your account. FMFs include, but are not limited to, fund operating expenses and investment management fees. Do it myself option You can choose from all of the above funds, plus the following: Fund categories Guaranteed fund lineup FMFs* Guaranteed SLA 5 Year Guaranteed Fund N/A Fund categories Segregated fund lineup FMFs* Canadian equity CC&L Group Canadian Equity Segregated Fund 0.35% U.S. equity BlackRock U.S. Equity Index Segregated Fund (Registered) 0.19% International equity MFS International Equity Segregated Fund 0.61% Sun Life Financial 4

5 Education central Active vs. Passive? Within the asset classes, different managers use different strategies to manage their funds. Active The goal is to outperform a market index based on research of current market conditions and company prospects. Active funds try to do better than the index and charge higher fees for this service. Passive Also known as Index funds, the goal is to match the performance of an index, like the S&P/TSX Composite Index. Passive funds have lower fund management fees but no potential for long-term performance above the index. Asset class description Money market funds or guaranteed investment Fixed income funds Canadian equity funds U.S. equity funds International equity fund Global equity funds These offer lower risk and lower returns. These are typically investments in bonds issued by governments, companies and organizations. The value of bonds fluctuates as interest rates change. These are investments primarily in stocks of Canadian companies. These are investments primarily in stocks of American companies. These are investments primarily in stocks of companies outside of North America. These are investments in stocks of companies outside of Canada. (U.S. and International) Facts about fees Under the Plan you benefit from investment fees that are lower than the fees of comparable individual funds offered through other financial institutions, which average between 2.0 and 2.5 per cent per year. Fees for the funds within the Canada Post programs are about 1.5 per cent lower. This difference in fees compounds over the life of your investments and can make a big difference down the road when you are ready to retire. Over a 25-year period, these lower fees could provide as much as 20 per cent more in retirement savings! As a member of the plan, you can see all the fund management fees (FMFs) you pay online. Simply sign into mysunlife.ca using your sign-in/access ID and password and go to: Home page > my financial centre > Accounts drop down menu > Account Fees. Did you know? If you select the Help me do it option, you may want to consider the automatic rebalancing. By choosing this option, your asset mix rebalances itself every 3 months without your intervention. In addition, your FMFs will show as a separate charge on your account each month which makes them easy to see. You can see the fees on your monthly transaction history on your website account at mysunlife.ca (Accounts > Transaction history > Details). If you select the Do it myself option, you can choose the automatic rebalancing option or you can rebalance your asset mix yourself at your convenience. IMPORTANT: if you select automatic rebalancing, your investment instructions will be used to rebalance your entire portfolio each quarter; this includes your existing assets and future contributions. 5 Sun Life Financial

6 Choose your investment approach As a plan member, you make the investment decisions for your savings. Because we re all different, there are three investment approaches to choose from depending on how involved you want to be and how often you will manage your investments over time. To help you decide which investment approach is right for you, refer to the following chart. That sounds like me... Low maintenance Middle-of-the-road Hands-on I want a simple investment solution that matches my planned retirement date. I have little time/interest in actively managing my investment portfolio. I feel I don t have the knowledge or experience to manage my portfolio. I m comfortable with a strategy that lowers my risk and my potential returns as I approach my retirement date. I want a simple investment solution that matches my personal risk profile. I m willing to review my risk profile annually and update my investment selections as my risk tolerance changes. I m comfortable choosing my own investment funds. I m willing and able to actively manage my investment portfolio. I m willing to review my risk profile annually and update my investment fund selections as necessary. I m willing to monitor and make changes to my investment funds to ensure they continue to reflect my investment goals. Do it for me Help me do it Do it myself What you need to do... Select the target date fund with the year closest to your planned retirement date. Complete the Investment risk profiler questionnaire online or included in this guide. Select the funds in the proportions that most closely match your risk profile. Select your individual investments to create the portfolio of funds that you want. You can complete the Investment risk profiler questionnaire online or included in this guide to help you determine your asset mix. Go to the next page for more information and next steps. Go to page 8 for more information and next steps. Go to page 10 for more information and next steps. Sun Life Financial 6

7 Do it for me You should consider a target date fund if: You want a simple investment solution that matches your planned retirement date. You have little time/interest in actively managing your investment portfolio. You feel you don t have the knowledge or experience to manage your portfolio. You re comfortable with a strategy that lowers your risk and your potential returns as you approach your retirement date. Your target date funds hold underlying investment funds designed to optimize diversification in the markets while managing risks in a cost-effective manner. Besides investing in stocks and bonds, the funds could also invest in real estate, commodities, infrastructure holdings and other specialty assets. Each target date fund automatically shifts towards a more conservative asset mix as the target maturity date of the fund approaches. If you decide to invest in one of the target date funds, all you have to do is: Step 1 Decide on the year you will begin to need the money, i.e. your retirement date. Step 2 Choose the target date fund closest to this year. Step 3 Select your funds by completing the enrolment form (initially), or by visiting mysunlife.ca or by calling Sun Life Financial s Customer Care Centre. Step 4 Continue to monitor your progress to your retirement income goals by visiting mysunlife.ca regularly. Joe s story Time Asset mix evolution in 2015 in 2025 in 2035 Fixed income /cash Equities Risk level evolution higher risk lower risk At first, Joe s savings are invested in a moderate asset mix slightly more than half is invested in equities (higher risk and higher potential returns), while the rest is in cash and fixed income (lower risk and lower potential returns). In 2025, when Joe is only 10 years from retirement, the target date fund has been adjusting his investments quarterly so that now more of his savings are in the lower risk fixed income options. This recognizes that Joe has a shorter time before he will need to draw on his savings and is therefore less willing to put his savings at risk in exchange for higher potential earnings. As Joe reaches his planned retirement date in 2035, the target date fund has once again been adjusting his investments to have even lower exposure to risk, while continuing to provide potential for earnings. 7 Sun Life Financial

8 You should consider this option if: You want a simple investment solution that matches your life style You are willing to review your risk profile annually and update your investment selections as your risk tolerance changes The whole picture When setting up your portfolio, consider any investments that you hold outside the Canada Post Defined Contribution Programs and Group Retirement Savings Plans. Your other investments may fulfill some proportions of the portfolio s suggested target mix. Help me do it You may build a simple balanced portfolio with the Help me do it funds and using the asset mix that matches your risk profile. Step 1 Complete the Investment risk profiler. My score: Online: Once you ve signed in to mysunlife.ca, select my financial centre, then my money tools under the Resource Centre drop-down menu. Select Continue to begin, OR Paper: Complete the paper copy on page 12 and page 13. Step 2 Identify the recommended asset mix in the table on the next page. Step 3 Choose from the available funds in each asset class and allocate in proportion with the recommended asset mix. You can use the global equity fund that combines the U.S equity and international equity funds. Step 4 Select your funds by completing the enrolment form initially, or by visiting mysunlife.ca or by calling Sun Life Financial s Customer Care Centre. Select the automatic rebalancing feature in order for your asset mix to be maintained over time. Step 5 Review the Investment risk profiler questionnaire periodically, such as when a major life event occurs. As your risk profile changes, you ll need to change your fund allocation. Step 6 Continue to monitor your progress toward your retirement goals by visiting mysunlife.ca regularly. [continued] Sun Life Financial 8

9 The following chart represents suggested asset mixes to align with your Investment risk profiler score. Risk profile score Description Recommended asset mix Conservative Less than 35 points You have a need for a predictable flow of income or have a relatively short investment horizon. Your tolerance for volatility is low and your primary goal is capital preservation. Moderate 36 to 85 points You seek a regular flow of income and stability, while generating some capital growth over time. Your tolerance for volatility is moderate and your primary goal is capital preservation with some income. Balanced 86 to 145 points You re looking for long-term capital growth and a stream of regular income. You re seeking relatively stable returns, but will accept some volatility. You understand that you can t achieve capital growth without some element of risk. Growth 146 to 190 points You can tolerate relatively high volatility. You realize that, over time, equity markets usually outperform other investments. However, you re not comfortable having all your investments in equities. You re looking for long-term capital growth with some income. Aggressive More than 190 points You can tolerate volatility and significant fluctuations in the value of your investments because you realize that, historically, equities perform better than other types of investments. You re looking for long-term capital growth and are less concerned with shorter-term volatility. Cash equivalents Bond (fixed income) Canadian equity U.S. equity International equity Global equity 9 Sun Life Financial

10 Do it myself If you choose the Do it myself option, here is a suggested approach you may use to build your own portfolio: Step 1 Create your own portfolio by selecting funds from the various asset classes and based on the asset mix that you want. To help you determine your asset mix, you can complete the Investment risk profiler. My score: Online: Once you ve signed in to mysunlife.ca, select my financial centre, then my money tools under the Resource Centre drop-down menu. Select Continue to begin, OR Paper: Complete the paper copy on page 12 and page 13. Step 2 Select your funds by visiting mysunlife.ca or by calling Sun Life Financial s Customer Care Centre. Step 3 Review your portfolio regularly at least once a year and make any adjustments needed to maintain your desired mix of funds and/or to achieve your retirement goals. Step 4 Review your asset mix (or risk profile) annually, or when a major life event occurs. As your risk profile changes and/or as you are progressing toward your retirement goals, you may want to adjust your mix of funds. Step 5 Continue to monitor your progress toward your retirement goals by visiting mysunlife.ca regularly. Understanding risk versus return Low Return High Money market Bond Balanced Equities Low Risk High In general, the higher the potential return, the higher the risk. You ll need to adjust your fund choices as your risk tolerance changes. Sun Life Financial 10

11 Investment risk profiler 11 Sun Life Financial

12 Investment risk profiler This questionnaire helps you determine your risk profile. If you have identified yourself as a Help me do it or Do it myself investor (see page 4 for descriptions), this will provide you with the investment risk score used to guide you to the appropriate funds. It s easy to monitor your risk profile If you complete the Investment risk profiler online at mysunlife.ca or with Sun Life Financial s Customer Care Centre ( ), the results will be shown on your statements and saved in your file. 1. Which statement best describes your comfort level with fluctuations in the value of your investments? (a) (b) (c) (d) I d be very upset if my investments dropped in value over any period of time. (1 point) I m willing to accept a lower, more predictable rate of return as long as fluctuations in the value of my investments are small. (10 points) I m willing to accept some fluctuations in the value of my investments as I m seeking a higher rate of return. (20 points) I want the highest rate of return possible, and understand the value of my investments can fluctuate significantly. (30 points) 2. How likely is it that you ll need access to a large portion of this money earlier than expected? (e.g. taking early retirement.)* (a) Very likely (1 point) (b) Somewhat likely (10 points) (c) Unlikely (20 points) (d) I won t need access to any of the money in this Plan early. (30 points) * Early retirement is defined by pension legislation and can vary by jurisdiction. 3. Which of the following pattern of returns would you be most comfortable with? Assume an initial amount of $5,000 invested for 10 years. (a) Your investment grows without losses to $8,100. However, in one of the years the value of your portfolio does not increase. (1 point) (b) Your investment grows to $10,100 in year 10, but slightly declines in value in two of the years. (10 points) (c) Your investment grows to $12,400, but significantly declines in value in three of the years and was worth only $3,500 after the first year. (20 points) Sun Life Financial 12

13 4. With the four results below, how would you invest $10,000? (a) A guaranteed return of $500. (1 point) (b) The potential of earning $800 but the risk of earning only $300. (10 points) (c) The potential of earning $1,200 but the risk of earning nothing. (20 points) (d) The potential of earning $2,500 but the risk of losing $1,000. (30 points) 5. If your investment dropped in value by 20 per cent in one month, how would you react? (a) I d cash in my investment immediately. (1 point) (b) I d make no changes until the value recovers and then re-evaluate. (10 points) (c) I d do nothing. I understand my investments will fluctuate from day-to-day, but believe they will grow over the long term. (20 points) (d) I d invest more while the prices are low. (30 points) 6. How would you describe your investing personality? (a) I don t like risk and can only tolerate moderate losses. (1 point) (b) I m willing to take some risk and can tolerate one year of poor returns. (10 points) (c) I can tolerate more than one year of poor returns. (20 points) 7. Which of the following statements best describes your investment knowledge? (a) I m a novice investor. (1 point) (b) I have some knowledge. (10 points) (c) I have good working knowledge. (20 points) (d) I consider myself an investment pro. (30 points) 8. How long will you leave this money invested before you ll need a significant portion of it for your stated objective? (a) Less than 5 years (1 point) (b) 5-10 years (10 points) (c) years (20 points) (d) More than 20 years (30 points) my total score is 13 Sun Life Financial

14 more tools to help you. mysunlife.ca has everything you need to manage your workplace retirement and savings plan accounts 24/7. With simple navigation, quick access to financial information and tools, and a fun, interactive learning program, you can contribute, invest, track your savings and plan for your financial future better than ever. Here s a quick overview of some of the key features worth exploring. Sign in and more The sign in page to mysunlife.ca is a resource centre in itself. You ll find engaging articles and helpful resources on topics that might be important to you from money, to family, to wellness. You can: Read helpful tips and information from Brighter Life articles and existing plan member material under the headings: Wellness, Family, Money, Working life, Retirement, Plans and coverage, and Resources and support. Access self-serve tools and resources that help you take action. Rate articles and participate in online poll questions. As the entry point for your retirement plan, it also provides you with options to register your account online and retrieve misplaced or forgotten sign-in/access IDs or passwords. my financial centre After signing in, your Personal Portfolio Home Page shows balances for all of your accounts. It s also the gateway to my financial centre a hub that brings together your key account and planning data all in one place. Just click on the my financial centre link or any account link to get there. [continued] Sun Life Financial 14

15 Accounts Your top three products by assets are displayed on the my financial centre home page, with links to the three most common actions for each product. So almost everything you need is just a quick click away. my retirement plan If you ve used the Retirement planner to create a retirement plan, you ll see a snapshot of your retirement savings goal and your progress in achieving it displayed on the right side of the screen. You can update your plan at any time by clicking on Go to my retirement plan. If you haven t started a retirement plan, just click on the button to begin it s ready when you are! my action plan my action plan highlights your top action items at any given time anything from enrolling in a product, to reviewing your statements, to revisiting your asset allocation. Check out the other online tools available to you. Simply select my money tools under Resource Centre and select Tools to access these features: Withdrawal calculator Determines the impact of withdrawals on your retirement income. Capital gains vs RRSP tax comparison calculator Helps you determine if you should invest inside or outside of your RRSP (for stock and equity-based funds). Mortgage vs savings calculator Helps you determine if it is better to pay off your mortgage, or contribute to savings. RRSP loan calculator Helps you figure out if you should take out a lump sum loan to contribute to your RRSP and improve your tax return. Tax calculator for non-residents Helps non-residents calculate the tax payable on any money paid or credited to them. Annuity premium calculator Helps you estimate the amount you need to pay into an annuity to provide the income you need for your lifestyle, and estimates the monthly income that a specific lump sum will pay back to you. Old Age Security (OAS) clawback calculator Explains clawback and provides you with an estimate of what your monthly OAS income will be. Registered Retirement Income Fund (RRIF) calculator Helps you find out how much you can withdraw each year from your RRIF, and estimates how long your retirement income will last. 15 Sun Life Financial

16 Sun Life Assurance Company of Canada, /18-kr-cm Client ID: C04WZ Plan ID: 01,