Page 7 - Sonepar USA 401(k) Plan education guide

Choose your investment approach
Review the strategies below to help you determine your investment approach.
If you prefer professional help selecting your investments:
Vanguard Target Retirement funds
Are you looking for an approach that manages your investment strategy by adjusting to align with your anticipated target retirement date? If so, consider investing in a target date fund, which provides:
• An investment portfolio that automatically becomes more conservative over time, offering more stability as you near retirement
• Investments that combine the potential for capital appreciation and income
• A diversified mix of stock, bond, and capital preservation investments
Target date funds, like all investments, are not immune to the market’s ups and downs or interest rate changes. When selecting a target date fund, consider your age, anticipated retirement date, risk tolerance, and personal and financial circumstances. You should review your investment selections at least annually to help ensure you remain on track with your savings goals.
Point-in-time advice5
If you have the time and interest to manage your Plan account on your own, you have access to a point-in-time tool that can provide and implement a one-time savings rate and asset allocation recommendation based on your current situation. These recommendations are formulated and provided by Morningstar Investment Management LLC, an independent registered investment adviser, through Morningstar® Retirement ManagerS,M and can be accessed through workplace.schwab.com. Point-in-time advice is available to you at no additional cost.
Schwab Retirement Planner®6
Through Schwab Retirement Planner, you have
access to ongoing professional managed account and advice services provided by Morningstar Investment Management. This service includes a personalized retirement savings and investment strategy, which factors in elements such as your Plan account balance, salary, savings rate, years until retirement, and estimated Social Security benefits. Then Schwab Retirement Planner calculates the income you’ll most likely need in retirement, recommends a savings rate to help you work toward your goal, and manages your investments along the way. Management of your account through Schwab Retirement Planner includes the following:
• Allocation of assets based on the specific funds in your Plan account and your personal circumstances
• A recommended savings rate
• Review of your investment mix every three months and fine-tuning, if needed, based on market performance or updates to your situation
• Portfolio reassessment at least annually to account for your being one year closer to retirement and to consider any additional changes shared by you or your employer
There are direct costs to you for the professional services provided by Schwab Retirement Planner. Schwab Retirement Plan Services, Inc. charges an asset-based fee for this service and pays Morningstar Investment Management for its provision of investment management services. The cost is calculated using a tiered approach based on your average daily account balance of eligible assets (excluding PCRA and loan balances) in the Plan for the number of days you are in the service. The service cost does not cover investment-related expenses,
such as the operating expense ratio (OER) or fees for plan administration, including recordkeeping, loans, or distributions. Details regarding the Schwab Retirement Planner fee can be found at workplace.schwab.com in the “For Your Plan” box, when you click My Account, and then Overview. You can also call Participant Services at 800-724-7526 or 877-905-2553 (español) to learn more.
If you prefer to invest on your own:
Plan-selected funds
If you enjoy researching and choosing investments, you may prefer to build your own portfolio using the funds available in the Plan. You may conduct research as needed using the many tools at workplace.schwab.com to analyze the Plan-selected funds.
You may change your investment elections for future contributions, rebalance your investments, or request a prospectus at workplace.schwab.com or by calling Participant Services at 800-724-7526 or 877-905-2553 (español).
Schwab Personal Choice Retirement Account®4 In addition to the Plan’s core investments, you have
access to a Schwab Personal Choice Retirement Account (PCRA), a self-directed brokerage account offered through Charles Schwab & Co., Inc. (member SIPC).
For additional information, contact a PCRA Representative at 888-393-7272 (888-393-PCRA) or log in to workplace.schwab.com.
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