Feed Future. your. Asset Allocation Builder. Jerry s Enterprises, Inc. Employees 401(k) Plan

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1 Feed Future your Asset Allocation Builder Jerry s Enterprises, Inc. Employees 401(k) Plan RETIREMENT PLAN ADMINISTRATIVE AND RECORDKEEPING SERVICES PROVIDED BY MCCREADY AND KEENE, INC., A ONEAMERICA COMPANY

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3 ASSET ALLOCATION BUILDER What will you need in retirement? We ve all been to a grocery store. We know the concept. We walk down the aisles, and select items to put in our cart. We check out, and take the groceries home. Our meals for the week will be made using the food we bought at the store. It s simple, right? But what about preparing for retirement? Or investing and creating a portfolio? Not as easy. And even a little bit intimidating. This guide will walk you through: Choosing your investing preference Learning some investing basics Determining your investor profile Maintaining your investing goals The good news? It doesn t need to be. 3

4 Step 1: Choosing your investing preference With the Jerry s Enterprises, Inc. 401(k) Plan, you have two options when it comes to determining your investments for retirement. Consider your options and personal situation to determine what will work best for you. 1. The Do It Myself Option: Some people like to do the shopping and cooking themselves, and have no need for a personal shopper. If this sounds like you, investment-wise, you may want to create your own investment portfolio. Your plan offers you the opportunity to select and manage your retirement plan assets. 2. The Do It For Me Option: Say you re the type of person who hates grocery shopping the crowds, the meal planning, the coupon cutting. Managed portfolios give you the option to hire a personal shopper. You tell your personal shopper the foods you like, your nutrition goals, and your budget, and voila your personal shopper does all the work for you. 4

5 ASSET ALLOCATION BUILDER Step 2: Understanding investing basics No matter if you choose the Do It Myself or Do It For Me option, it s important to understand some of the basics of investing. It s okay to fill your cart with a sweet treat or two, as long as you balance it out with some healthy options. The same goes for investing. As a shopper and investor, you need to find balance. You want stability, but also the possibility to grow. You may be willing to take on some risk, but only up to a certain point. Diversification and asset allocation can help you achieve the right balance. Asset Allocation In shopping terms, asset allocation is deciding how much of what you re going to put in your shopping cart. Instead of food, your cart may be filled with stocks, bonds and cash. Diversification You know that it s not a great decision to buy all of your food from the candy aisle. This gets at the basic idea of diversification that your retirement portfolio should contain a healthy mix of different types of investments. If you have all your retirement funds in one investment and that investment performs poorly, your portfolio could be in trouble. But, if your funds are divided between several investments, poor performance from one investment has less impact on your overall portfolio. Please note that the use of asset allocation or diversification does not assure a profit or guarantee against a loss. 5

6 Use the Risk Assessment Questionnaire on the next page to answer some questions about your goals, time frame, and attitude toward risk. Your total score will help to determine your next steps. Step 3: Determining your investor profile If you re a single, 20-something man going grocery shopping, the items in your shopping cart most likely look nothing like the contents of your 70-year old grandmother s cart. As shoppers, our family situation, lifestyle, age and health dictate a lot about the items we buy. The same goes for investing. Because each investor has different goals and circumstances, there is no set strategy that works for everyone, and each person s portfolio, or shopping cart of investments will look very different. How do I determine my investor profile? The questionnaire on page 7 helps get to the heart of who you are as an investor, by asking you to answer some basic questions about your goals, time frame, and attitude toward risk. Your total score will help to determine your next steps. Answer as best and honestly as you can. After you answer the questions: 1. Total your score in the bottom right hand box. 2. Review the corresponding managed portfolio on pages 8 and 9 to get a detailed description of the characteristics of your risk profile. 6

7 ASSET ALLOCATION BUILDER TIME HORIZON Your current situation and future income needs. 5 points 4 points 3 points 2 points 1 point Score What is your current age? Less than to to to 75 Older than 75 When do you expect to start drawing income? Not for at least 20 years In 10 to 20 years In 5 to 10 years Not now, but within 5 years Immediately GOALS/EXPECTATIONS Your views of how an investment should perform over the long term. 5 points 4 points 3 points 2 points 1 point Score What is your goal for this investment? Assuming normal market conditions, what would you expect from this investment over time? If stocks perform very poorly over the next decade, what would you expect from this investment? To grow aggressively To generally keep pace with the stock market To lose money To grow significantly To slightly trail the stock market & make good profits To make very little or nothing To grow moderately To trail the stock market, but make a moderate profit To make out a little gain To grow with caution To have some stability, but make modest profits To make a modest gain To avoid losing money To have a high degree of stability & make small profits To be affected little by the stock market SHORT-TERM RISK PROFILE Your attitude toward short-term volatility. 5 points 4 points 3 points 2 points 1 point Score Which of these statements describe your attitude about the next three years performance of this money? Which of these statements describe your attitude about the next few months performance of this money? I don t mind if I lose money Who cares, 3 months means nothing I can tolerate a loss I wouldn t worry about losses in that time frame I can tolerate a small loss A loss of more than 10% would concern me I d have a hard time dealing with a loss I can only tolerate shortterm losses I need to see at least a little return I d have a hard time stomaching any losses TOTAL 7

8 Your Do It For Me option Based on your score from the Risk Assessment Questionnaire, the Do It For Me option suggests an activelymanaged FIT portfolio that may be appropriate for your risk level and investing goals. Selecting an investor model FIT Aggressive Portfolio Score Best suited for investors investors who are seeking maximum appreciation, and willing to accept a higher level of volatility and risk to achieve that goal. FIT Growth Portfolio What s an actively-managed FIT portfolio? If you select 1 of these 5 portfolios, you are selecting an actively-managed approach based on a combination of your age and tolerance for risk and market volatility. Use your score from the previous page to identify the managed portfolio that may be suited for your retirement investments. Note: These portfolios are based upon broad definitions used by Fiduciary Investment Trust and are not representative of an individual account objective. The median targets are considered as base guidelines, and as such, there is no guarantee of complete adherence to these levels. While diversification through an asset allocation strategy is a useful technique that can help to manage overall portfolio risk and volatility, there is no certainty or assurance that a diversified portfolio will enhance overall return or outperform one that is not diversified. An investment made according to asset allocation models neither guarantees a profit nor eliminates the possibility of loss. Fees are associated with managed portfolios. A written fee disclosure is available from your investment professional at Qualified Plan Advisors. The actively-managed FIT (Fiduciary Investment Trust) portfolios are collective investment trusts (CITs) sponsored by Comerica and managed by Prime Capital Investment Advisors and Qualified Plan Advisors. Score Best suited for investors who are seeking portfolio appreciation, and willing to accept a higher level of volatility and risk to achieve that goal. FIT Balanced Portfolio Score Best suited for investors who are seeking moderate growth while also looking for below market volatility. FIT Moderately Conservative Portfolio Score Best suited for investors who are seeking below market volatility and are willing to accept lower returns. FIT Conservative Portfolio Score 7 10 Best suited for investors whose priority is preservation of capital, with the desire for a small portion of their portfolio in equities. 1. Percentages listed are median targets. 8

9 ASSET ALLOCATION BUILDER to suit your investor profile type Allocation of assets Percentage 1 n Stock/Equity focus 8 95% n Bond/Cash focus 5 15% Allocation of assets Percentage 1 n Stock/Equity focus 70 85% n Bond/Cash focus 15 30% Allocation of assets Percentage 1 n Stock/Equity focus 45 65% n Bond/Cash focus 35 55% Allocation of assets Percentage 1 n Stock/Equity focus 30 45% n Bond/Cash focus 55 70% Allocation of assets Percentage 1 n Stock/Equity focus 20 30% n Bond/Cash focus 70 80% 9

10 Step 4: Maintaining your goals Questions? Visit us online at or call your dedicated team at Qualifed Plan Advisors. The hard part is done. Now you ll just need to regularly review what you put in your shopping cart. Re-evaluating your situation If your pants start to fit a little too tight, you may rethink the cookie dough you just picked up and instead head to the produce section. This is evaluating your situation. Your investments need the same kind of attention. Certain life events may change your risk tolerance or retirement goals. Any of these events may signal a need to re-evaluate your investment choices: Marriage Birth of a child Change of employment for you or your spouse Divorce Windfalls (inheritance, gift or winnings) Financial emergency Empty nest Death of a spouse Approaching retirement Make sure you continually evaluate your needs and investments, and make sure the two are in line. An annual review can help you determine if you are still headed in the right direction. Note: McCready and Keene provides administrative and recordkeeping services and is not a broker/dealer or an investment advisor. Provided content is for overview and informational purposes only and is not intended and should not be relied upon as individualized tax, legal, fiduciary, or investment advice. 10

11 ASSET ALLOCATION BUILDER Mutual funds are sold by prospectus. To obtain a copy of the prospectus, the participant should contact the plan s investment advisor or the mutual fund company directly. Before investing, carefully consider the fund s investment objectives, risks, charges, and expenses. The underlying fund prospectuses contain this and other important information. Read the prospectuses carefully before investing. Qualified Plan Advisors (QPA)/Prime Capital Investment Advisors is not an affiliate of McCready and Keene, Inc. and is not a OneAmerica company. Each group of investments carry their own unique risks. Before investing, please read each fund prospectus for a detailed explanation of the risks, fees and costs associated with each underlying investment option. Your dedicated team For enrollment questions and general account information, please contact: Qualified Plan Advisors support@qualifiedplanadvisors.com toll free Investing involves risk which includes potential loss of principal. Funds investing in stocks of small, mid-sized, and emerging companies may have less liquidity than those investing in larger, established companies and may be subject to greater price volatility and risk than the overall stock market. Investing in international markets involves risks not associated with investing solely in the U.S., such as currency fluctuation, potential political and diplomatic instability, liquidity risks, and differences in accounting, taxes, and regulations. Money market funds are not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other federal government agency. Although they seek to preserve the value of your investment at $1.00 per share, it s possible to lose money by investing in money market funds. Funds that invest in high-yield bonds are subject to greater credit risk and price fluctuations than funds that invest in investment grade bonds. 11

12 McCready and Keene, Inc. a OneAmerica company P.O. Box Indianapolis, IN OneAmerica Financial Partners, Inc. All rights reserved. OneAmerica and the OneAmerica banner are all registered trademarks of OneAmerica Financial Partners, Inc. R /26/18