1. Understanding Investing FOR EDUCATIONAL USE ONLYTRSC 3413INV-0711 © 2011 Transamerica Retirement Services Corp. All rights reserved.

2. What are the differences between the various types of investments? What are the drivers of investment return? How do you monitor and manage your investment strategy? Getting Down to Basics All investments involve risk, including loss of principal and there is no guarantee of profits. Investors should carefully consider their objectives, risk tolerance, and time horizon before investing. Transamerica Retirement Services does not provide investment advice. Clients and other interested parties must consult and rely solely upon their own independent advisors regarding their particular situation. Transamerica Retirement Services does not act as a fiduciary.

3. Asset Classes

4. Primary Asset Classes: Stocks Bonds Cash Equivalents* Investment Types or Asset Classes All investments involve risk, including loss of principal and there is no guarantee of profits. Investors should carefully consider their objectives, risk tolerance, and time horizon before investing. *This category seeks to protect against loss of principal while providing returns comparable to money market funds and short-term Treasury instruments. An investment in a cash equivalent investment choice is not insured or guaranteed by the FDIC or any other government agency. Although the investment seeks to preserve the value of your principal, it is possible to lose money by investing in the investment choice. These investment choices have generally provided a dependable level of stability and liquidity; nevertheless, the investment is still subject to credit risk and to liquidity risk.

5. Single Asset Class Stock Funds Bond Funds Cash Equivalents* Money Market Funds** Multiple Asset Class Balanced Funds Asset Allocation Funds Target Date Funds*** Investments Combined into Funds All investments involve risk, including loss of principal and there is no guarantee of profits. Investors should carefully consider their objectives, risk tolerance, and time horizon before investing. *This category seeks to protect against loss of principal while providing returns comparable to money market funds and short-term Treasury instruments. An investment in a cash equivalent investment choice is not insured or guaranteed by the FDIC or any other government agency. Although the investment seeks to preserve the value of your principal, it is possible to lose money by investing in the investment choice. These investment choices have generally provided a dependable level of stability and liquidity; nevertheless, the investment is still subject to credit risk and to liquidity risk. **Money Market Funds invest in short term (less than one year), high quality debt obligations, such as Treasury bills, certificates of deposit and commercial paper, and many strive to maintain a net asset value of $1.00 per share. They are not guaranteed by the FDIC or any other government agency. This type of investment choice strives to preserve principal and provide a modest dividend (subject to fluctuation), as well as liquidity. Nevertheless, the investment is still subject to credit risk and liquidity risk, and the risk that inflation will outpace the fund’s returns. It is still possible to lose money in a money market fund. ***A Target Date Fund investment choice is designed to allocate assets among stocks, bonds, and cash equivalents, based on the target date. The investment choice will gradually shift its emphasis from more aggressive investments to more conservative investments based on its target date. The participant may choose an investment choice built on or near his or her year of retirement, and the asset allocation of that investment choice adjusts accordingly as the target retirement date approaches. The “target retirement date” is the date on which participants intend to retire and start receiving distributions from the plan. While asset allocation is key to a Target Date Fund investment choice’s long-term returns, it should be understood that the principal value is not guaranteed at any time, including at the target maturity date.

6. Professional management in accordance with specific goals and written objectives Diversification within one or more asset class to help manage risk Advantages of Investment Funds All investments involve risk, including loss of principal and there is no guarantee of profits. Investors should carefully consider their objectives, risk tolerance, and time horizon before investing. Asset allocation and diversification do not assure or guarantee better performance and cannot eliminate the risk of investment losses.

7. Ownership in a corporation Most opportunity for gain (historically) More risk than bonds or cash equivalents (historically) Higher return potential than bonds or cash equivalents over extended periods of time Lower risk/returnHigher risk/return Stocks All investments involve risk, including loss of principal and there is no guarantee of profits. Investors should carefully consider their objectives, risk tolerance, and time horizon before investing. Transamerica Retirement Services does not provide investment advice. Clients and other interested parties must consult and rely solely upon their own independent advisors regarding their particular situation. Transamerica Retirement Services does not act as a fiduciary.

8. Generally categorized by: Market capitalization –Large-cap –Mid-cap –Small-cap Investment style –Value –Blend –Growth Stocks and Stock Funds Market Capitalization Small-Cap Mid-Cap Large-Cap Investment Style Value Blend Growth All investments involve risk, including loss of principal and there is no guarantee of profits. Investors should carefully consider their objectives, risk tolerance, and time horizon before investing.

9. The total value of a company’s outstanding shares: Current Stock Price$50 Number of Outstanding Shares x 100 million Market Capitalization =$5 billion Market Capitalization

10. < $1 billion $1 - $8 billion > $8 billion Includes young companies that are just starting out Small-cap Often not as well-known as larger companies Mid-cap Typically older, larger, and more well-known companies Large-cap Lower Risk Higher Risk Market Capitalization Source: Morningstar, Inc. © 2005.

11. Stock price is considered low relative to the underlying value of the company Typically pays higher dividends Stock price is expected to increase as the company experiences a high rate of growth Often pays no dividends, as extra cash is reinvested in the company Value BlendGrowth Investment Style All investments involve risk, including loss of principal and there is no guarantee of profits. Investors should carefully consider their objectives, risk tolerance, and time horizon before investing.

12. Promise of repayment from a borrower to a lender Susceptible to interest rate fluctuation As interest rates rise, bond values fall Riskier than cash equivalents, typically less risky than stocks Potentially higher returns than cash, typically lower returns than stocks over extended periods of time Lower risk/returnHigher risk/return Bonds The values of bonds change in response to changes in economic conditions, interest rates, and the creditworthiness of individual issuers. Investment choices that invest in bonds can lose their value as interest rates rise and an investor can lose principal.

13. Generally classified by: Who is issuing the bond— corporation, municipality, or government When the bond matures— short-, intermediate-, or long-term How likely is the issuer to repay (quality)— –If the bond has a higher rating, the rating agency generally believes the bond is more likely to be repaid –A higher rated bond typically pays a lower interest rate Bonds and Bond Funds All investments involve risk, including loss of principal and there is no guarantee of profits. Investors should carefully consider their objectives, risk tolerance, and time horizon before investing.

14. Designed to preserve your investment Generally low risk and typically low return Usually very liquid Value fluctuates very little over time Lower risk/returnHigher risk/return An investment in a cash equivalent investment choice is not insured or guaranteed by the FDIC or any other government agency. Although the investment seeks to preserve the value of your principal, it is possible to lose money by investing in the investment choice. These investment choices have generally provided a dependable level of stability and liquidity; nevertheless, the investment is still subject to credit risk and to liquidity risk. Money Market Funds invest in short term (less than one year), high quality debt obligations, such as Treasury bills, certificates of deposit and commercial paper, and most Money Market Funds strive to maintain a net asset value of $1 per share. They are not guaranteed by the FDIC or any other government agency. This type of investment choice strives to preserve principal and provide a modest dividend (subject to fluctuation), as well as liquidity. Nevertheless, the investment is still subject to credit risk and liquidity risk, and the risk that inflation will outpace the fund’s returns. It is still possible to lose money in a money market fund. Cash Equivalents and Money Markets

15. Value fluctuates very little over time May not keep pace with inflation Cash Equivalents and Money Market Funds Historically less volatile than stocks Issuer may default Value declines when interest rates rise Bonds and Bond Funds Historically has outperformed other asset classes over extended periods of time Fluctuates in the short-term In bankruptcy, stockholders are last in line Stocks and Stock Funds RewardsRisks Value fluctuates very little over time There is no guarantee that any asset class will achieve a certain rate of return or outperform another asset class. Risks and Rewards

16. Asset Allocation & Diversification

17. How you allocate your investments across asset classes (stocks, bonds, and cash equivalents) may help you manage investment volatility. The Importance of Asset Allocation All investments involve risk, including loss of principal and there is no guarantee of profits. Investors should carefully consider their objectives, risk tolerance, and time horizon before investing.

18. Short-Term Bonds Aggressive Bonds Large-Cap Stocks Small/Mid-Cap Stocks International Stocks Intermediate/ Long-Term Bonds Spreading your assets among the available investments within each asset class: Helps reduce volatility Increases likelihood of achieving more consistent returns Diversification Manages Risk Asset allocation and diversification do not assure or guarantee better performance and cannot eliminate the risk of investment losses.

19. Diversification Across Asset Classes Source: Morningstar Direct. Data as of December 31, 2010. Bonds are represented by Barclays Capital Aggregate Index. Stocks are represented by Russell 1000 index. An index is unmanaged and does not take into account the fees and expenses associated with an actively managed fund so performance may differ. It is not possible to invest directly in an index. There is no guarantee that any asset class will achieve a certain rate or return or outperform another asset class. Asset allocation and diversification do not assure or guarantee better performance and cannot eliminate the risk of investment losses. Transamerica Retirement Services is not affiliated with Morningstar Direct, Barclays, and Russell Investments. All investments involve risk, including loss of principal and there is no guarantee of profits. Investors should carefully consider their objectives, risk tolerance, and time horizon before investing. Past performance is not a guarantee of future performance.

20. Growth and Value Diversification Source: Morningstar Direct. Data as of December 31, 2010. Large Value represented by Russell 1000 Value Index. Large Growth represented by Russell 1000 Growth Index. An index is unmanaged and does not take into account the fees and expenses associated with an actively managed fund, so performance may differ. It is not possible to invest directly in an index. There is no guarantee that any asset class will achieve a certain rate of return or outperform another asset class. Asset allocation and diversification do not assure or guarantee better performance and cannot eliminate the risk of investment losses. Transamerica Retirement Services is not affiliated with Morningstar Direct and Russell Investments. All investments involve risk, including loss of principal, and there is no guarantee of profits. Investors should carefully consider their objectives, risk tolerance, and time horizon before investing. Past performance is not a guarantee of future performance.

21. Don’t overreact to short-term fluctuations; time is on your side Periodically revisit your long-term strategy; rebalance when necessary Investing for the Long Term Calculated by Transamerica Retirement Services using data from Morningstar, Inc. Stocks are represented by the S&P 500® Index, an unmanaged index generally considered representative of the stock market. Bonds are represented by the Barclays Capital Aggregate Bond Index. Cash is represented by the Citigroup 3-month U.S. Treasury Bill Index. This chart is for illustrative purposes only, and your circumstances may differ from this example. Chart assumes $1,000 invested in December 1985 through December 2010. It does not reflect the actual return of any specific investment and is not intended to imply or guarantee future results. One cannot invest directly in an index. An index is unmanaged and does not take into account the fees and expenses associated with an actively managed fund, so performance may differ. There is no guarantee that any asset class will achieve a certain rate of return or outperform another asset class. Past performance is not a guarantee of future performance. Cash Equivalents: This category seeks to protect against loss of principal while providing returns comparable to money market funds and short-term Treasury instruments. An investment in a cash equivalent investment choice is not insured or guaranteed by the FDIC or any other government agency. Although the investment seeks to preserve the value of your principal, it is possible to lose money by investing in the investment choice. These investment choices have generally provided a dependable level of stability and liquidity; nevertheless, the investment is still subject to credit risk and to liquidity risk. $1,000 hypothetical investment

22. Your asset allocation can become “unbalanced” over time: Importance of Rebalancing

23. Investor A invests $1,000 a year in the stock market for 10 years, then stops and lets earnings compound for 20 more years. Investor B invests $2,000 a year in the stock market for 20 years but starts 10 years later. The Power of Compounding This chart is for illustration purposes only. Your circumstances will differ from this example. It is unlikely that any investments would have such consistent returns. Assumptions do not include wage increases or price inflation. Saving for retirement does not guarantee a profit or protect against a loss. This chart assumes an annual return rate of 6.3%.

24. Your life in retirement.

25. Allocate your assets across different types of investments (asset classes) Diversify your holdings within each asset class Adjust your mix as your needs change over your lifetime – automatically, if you sign up online Based on your goals we can help you: Short-Term Bonds Aggressive Bonds Large-Cap Stocks Small/Mid-Cap Stocks International Stocks Intermediate/ Long-Term Bonds The Transamerica Difference All investments involve risk, including loss of principal, and there is no guarantee of profits. Investors should carefully consider their objectives, risk tolerance, and time horizon before investing. Asset allocation and diversification do not assure or guarantee better performance and cannot eliminate the risk of investment losses.

26. Save more – automatically – with SaveXpress: Your contribution amount is increased automatically You choose the amount and timing of your increase Sign up today on www.TA-Retirement.com You should evaluate your ability to continue the service in the event of a prolonged market decline, unexpected expenses, or an unforeseeable emergency. This service is offered at no additional cost and can be accessed online at www.TA-Retirement.com. IRS/Plan limits may affect the amount you can contribute under the retirement plan for each year. It is important that you understand your plan's rules along with any associated tax implications. SaveXpress SM

27. RetireTrack sm RetireTrack sm is a proprietary retirement planning module, solely provided for educational purposes. It is not investment advice. Transamerica does not act as a fiduciary and is not affiliated with Ibbotson. The projections generated by the Ibbotson simulation models regarding the likelihood of various outcomes are hypothetical in nature, do not reflect actual investment results, and do not guarantee future results.

28. RetireTrack sm RetireTrack sm is a proprietary retirement planning module, solely provided for educational purposes. It is not investment advice. Transamerica does not act as a fiduciary and is not affiliated with Ibbotson. The projections generated by the Ibbotson simulation models regarding the likelihood of various outcomes are hypothetical in nature, do not reflect actual investment results, and do not guarantee future results.

29. Retirement Calculators on www.TA-Retirement.com Determine a savings goal

30. Convenient services help you manage your account: On the Web: www.TA-Retirement.com Online and through the mail: Quarterly statements and newsletters Over the phone: (800) 401-8726 One-on-one: Service Representative The Transamerica Difference Save time and paper. Sign up for e-documents today!

31. Convenient services help you manage your account: On the Web: www.TA-Retirement.com Online and through the mail: Quarterly statements and newsletters Over the phone: (888) 637-8726 One-on-one: Service Representative The Transamerica Difference Save time and paper. Sign up for e-documents today!

32. Convenient services help you manage your account: On the Web: www.TA-Retirement.com Online or through the mail: Quarterly statements and newsletters Over the phone: (877) 234-9293 One-on-one: Service Representative The Transamerica Difference Save time and paper. Sign up for e-documents today!

33. Experience — Transamerica and its affiliates have over 70 years 1 of experience helping millions of participants plan for the future Sole focus on retirement plans Tools and guidance for all life stages Assistance available 24/7 Servicing billions of dollars in retirement plan assets 1 As of 12/31/2010 Your successful retirement is our mutual goal Transamerica or Transamerica Retirement Services refers to Transamerica Retirement Services Corp., which is headquartered in Los Angeles, CA. Transamerica Financial Life Insurance Company and Transamerica Life Insurance Company are affiliates of Diversified Investors Securities Corp. (DISC). Securities are offered by DISC, 440 Mamaroneck Avenue, Harrison, NY 10528.