1. 457 Retirement Education for LIFE ® Is Your Retirement Rockin’ or Rollin’?

2. 457 Retirement Education for LIFE ® 9/10/2015 NRM-3448A0.1 (308) Nationwide Retirement Solutions Retirement Education for LIFE™ Retirement Specialists are registered representatives of Nationwide Investment Services Corporation, member FINRA. In Michigan only: Nationwide Investment Svcs. Corporation. How to Manage Your Investment Risk

3. How to Mange Your Investment Risk Retire — 3 Today, you will … Define the main types of investment risk Learn three ways to manage investment risk Prepare an action plan to help you manage investment risk

4. How to Mange Your Investment Risk Retire — 4 What is risk? The possibility of loss

5. How to Mange Your Investment Risk Retire — 5 Investment risk Five main types: Volatility (market risk) Purchasing power (inflation risk) Business-specific Interest rate Longevity Action step

6. How to Mange Your Investment Risk Retire — 6 Managing investment risk Three methods (strategies): Match investments to time horizon Diversification Dollar cost averaging Action step

7. How to Mange Your Investment Risk Retire — 7 Jane’s time horizon Life expectancy 85 Expected retirement age 65 Current age40 Time horizon: 85 - 40 = 45 years NOT 65 - 40 = 25 years Action step

8. How to Mange Your Investment Risk Retire — 8 Use of diversification as part of an overall investment strategy does not assure a profit or guarantee against loss in a declining market. Diversification Diversification is the principle of __________ your assets around, or not putting all of your _____ in one basket. spreading eggs Action step

9. How to Mange Your Investment Risk Retire — 9 This illustration is hypothetical and is not intended to predict or project investment results. It doesn't reflect any fees or charges. If they were, the results would be lower. Diversification in action Option #1 $50,000 @ 2% for 25 years = Option #2 $10,000 @ -100% = $10,000 @ 0% = $10,000 @ 5% for 25 yrs = $10,000 @ 8% for 25 yrs = $10,000 @ 10% for 25 yrs = $ 0 $ 10,000 $ 33,864 $ 68,485 $108,347 $220,696 $ 82,030

10. How to Mange Your Investment Risk Retire — 10 $10.79 13 $10.59 17 $10.39 26 $10.7913 Amount Price # of Golf Balls Dollar cost averaging does not assure a profit and does not guarantee against loss in a declining market. Dollar cost averaging

11. How to Mange Your Investment Risk Retire — 11 $10.79 13 $10.59 17 $10.39 26 $10.7913 Average store price per ball $2.56 divided by 4 = 64 cents Average price paid per ball $40 divided by 69 = 58 cents $40$2.5669 Dollar cost averaging Amount Price # of Golf Balls Action step Please be aware that dollar cost averaging does not assure a profit and does not guarantee against loss in a declining market.

12. How to Mange Your Investment Risk Retire — 12 Definition Time horizon Diversification Dollar cost averaging The risk that you might not have enough money on which to retire The up and down movements In the price of an investment The risk that your money won’t buy as much in the future The risk that the value of a particular company’s stock declines How an upward move in interest rates makes the value of your fixed income investment decline Volatility Purchasing power Business– specific Interest rate Accumulation Type of risk Tools for managing risk Action step

13. How to Mange Your Investment Risk Retire — 13 Tools for managing risk Definition Time horizon Diversification Dollar cost averaging The risk that you might not have enough money on which to retire The up and down movements In the price of an investment The risk that your money won’t buy as much in the future The risk that the value of a particular company’s stock declines How an upward move in interest rates makes the value of your fixed income investment decline Volatility Purchasing power Business– specific Interest rate Accumulation Type of risk Action step

14. How to Mange Your Investment Risk Retire — 14 Tools for managing risk Definition Time horizon Diversification Dollar cost averaging The risk that you might not have enough money on which to retire The up and down movements In the price of an investment The risk that your money won’t buy as much in the future The risk that the value of a particular company’s stock declines How an upward move in interest rates makes the value of your fixed income investment decline Volatility Purchasing power Business– specific Interest rate Accumulation Type of risk Action step

15. How to Mange Your Investment Risk Retire — 15 Tools for managing risk Definition Time horizon Diversification Dollar cost averaging The risk that you might not have enough money on which to retire The up and down movements In the price of an investment The risk that your money won’t buy as much in the future The risk that the value of a particular company’s stock declines How an upward move in interest rates makes the value of your fixed income investment decline Volatility Purchasing power Business– specific Interest rate Accumulation Type of risk Action step

16. How to Mange Your Investment Risk Retire — 16 Tools for managing risk Definition Time horizon Diversification Dollar cost averaging The risk that you might not have enough money on which to retire The up and down movements In the price of an investment The risk that your money won’t buy as much in the future The risk that the value of a particular company’s stock declines How an upward move in interest rates makes the value of your fixed income investment decline Volatility Purchasing power Business– specific Interest rate Accumulation Type of risk Action step

17. How to Mange Your Investment Risk Retire — 17 Tools for managing risk Definition Time horizon Diversification Dollar cost averaging The risk that you might not have enough money on which to retire The up and down movements In the price of an investment The risk that your money won’t buy as much in the future The risk that the value of a particular company’s stock declines How an upward move in interest rates makes the value of your fixed income investment decline Volatility Purchasing power Business– specific Interest rate Accumulation Type of risk Action step

18. How to Mange Your Investment Risk Retire — 18 So what can you do? Annually rebalance your investments Change allocation as you get closer to retirement Invest fixed amounts at regular intervals Diversify Ways to manage risk Action step

19. How to Mange Your Investment Risk Retire — 19 Why combine other retirement dollars into this plan? It may make investing easier! Personal help now and after you retire May pay less in annual account fees Nationwide is an industry leader in both 457(b) and 401(k) markets

20. How to Mange Your Investment Risk Retire — 20 What types of accounts can you combine? Qualified 401(k) retirement plan Qualified 403(b) retirement plan Rollover IRA, Contributory IRA or SIMPLE IRA account You can transfer other 457 dollars or rollover dollars from a: There are differences between deferred compensation plans, individual retirement accounts, and qualified plans, including fees and when you can access funds. There may be sales charges or other fees when you move money out of your current account. You should consider all factors before making a decision. Assets rolled over from a qualified plan, DROP plan or IRA may be subject to a 10% penalty tax if withdrawn prior to age 59½. Neither Nationwide, nor any of its representatives give legal or tax advice.

21. How to Mange Your Investment Risk Retire — 21 Tools and services to make informed investing decisions Information provided by Retirement Specialists is for educational purposes only and is not intended as investment advice. Action step Face-to-face Online By phone Other financial education workshops

22. How to Mange Your Investment Risk Thank you for your attendance! Retire — 22