Empower 3/9/2022 - Laserfiche WebLink

provider may make changes from time to time with respect to the investment options available in the plan. You should carefully consider the benefits of a well-balanced and diversified investment portfolio. Market or other economic conditions that cause one category of assets to perform very well often cause another asset category to perform below average. Diversification does not guarantee investment returns and does not eliminate the risk of loss. Below are some of the common factors that can produce a loss in a client's account and/or in a specific investment product or asset category: • Market Risk:Stock and bond markets are volatile and can decline significantly in response to adverse issuer,political, regulatory, market, or economic developments in the U.S. and in other countries. Market risk may affect a single company,a sector of the economy,a country or geopolitical region,or the market as a whole. Market risk may impact stock and or bond markets in unanticipated and different ways. • Business Risk:These risks are associated with a particular industry or a particular company within an industry. • Capitalization Risk: Small-cap and mid-cap companies may be hindered due to limited resources or less diverse products or services. Their stocks have historically been more volatile than the stocks of larger, more established companies. • Category or Style Risk: During various periods of time,one category or style may underperform or outperform other categories and styles. • Credit Risk: The risk that the issuer of a security may be unable to make interest payments and/or repay principal when due.A downgrade to an issuer's credit rating or a perceived change in an issuer's financial strength may affect a security's value and impact the performance of the issue —along with any mutual fund or exchange-traded fund which holds it. • Interest Rate Risk: The market value of a debt security is affected significantly by changes in interest rates. When interest rates rise the security's market value declines. When interest rates decline, market values rise. The longer bond maturity results in the greater the risk and the higher yield.Conversely,the shorter bond maturity results in the lower risk and the lower yield. • Inflation Risk:When any type of inflation is present,purchasing power may be eroding at the rate of inflation. • Reinvestment Risk:The risk that future proceeds from investments may have to be reinvested at a potentially lower rate of return(i.e.,interest rate).This relates primarily to fixed income securities. • Exchange-traded funds: Exchange-traded funds present market and liquidity risks,because they are listed on a public securities exchange and are purchased and sold via the exchange at the listed price. The price will vary based on current market conditions and may deviate from the net asset value of the exchange-traded fund's underlying portfolio.There may also be an inactive market for certain funds,and/or losses from trading in secondary markets. • Target Date Funds: Generally, the asset allocation of each target date fund will change on an annual basis with the asset allocation becoming more conservative as the fund nears the target retirement date. The target date is the approximate date when investors plan to start withdrawing their money.The principal value of the fund(s)in a plan's lineup is not guaranteed at any time,including at the time of target date and/or withdrawal. • An investment in a money market fund is not insured or guaranteed by the FDIC or any other government agency.Although some money market funds such as U.S.Government money market funds strive to preserve the value of the investment at $1.00 per share, it is possible to lose money by investing in a money market fund. Additionally, other money market fundsmay operate under new rules and regulations permitting them to have a"floating"value per share.A floating value may be more or less than$1.00 per share depending on market conditions and impose liquidity/redemption fees for large orfrequent withdrawals. For more complete information about any of the mutual funds or investment product available within the retirement plan, please contact your retirement plan service provider. 12