Idea Transcript
OHIO DEFERRED COMPENSATION
Ohio Deferred Compensation
OHIO PUBLIC EMPLOYEES DEFERRED COMPENSATION PROGRAM
LifePath Portfolios
Choose Your Path To Retirement Hassle-Free Investing LifePath Portfolios are designed to make investing easier for you. Through the LifePath Portfolio, you get a straightforward, complete asset-allocation strategy. Even if you have the knowledge, interest, and time to develop effective investment strategies, you could still make choices that might jeopardize your future financial security. That’s why the Program offers LifePath Portfolios.
Can I choose other investments in addition to LifePath?
Yes.
Does the diversification and/or asset allocation of a LifePath Portfolio change over time?
Yes.
Common questions about LifePath
What happens when I reach my target year? When a LifePath Portfolio reaches the year identified in the Portfolio’s name, it will be transitioned to the LifePath Retirement Portfolio. This fund’s investment mix is designed to provide income and moderate long-term growth of capital for investors who will be withdrawing their money over a period of time.
If I separate service with my employer, can I withdraw money from my LifePath Portfolio earlier than the target year?
Yes.
Withdrawals can be done independently of the LifePath target year. However, it may be advisable to change your LifePath Portfolio if your withdrawal timeframe is altered significantly. Withdrawals may be restricted while you’re employed. Please contact Ohio Deferred Compensation if you have questions. Distributions before age 59½ from a rollover account such as a 401(k) might be subject to early withdrawal penalties.
The LifePath investments are designed to become more conservative over time.
Does investing in a LifePath Portfolio protect me from market loss? Even though asset allocation is a proven investment strategy, there are risks to investing in each of the LifePath Portfolios, including the LifePath Retirement Portfolio. Principal value is not guaranteed at the time of withdrawal.
Which LifePath Portfolio should I choose? Most people choose a target date near the year they actually plan to begin making withdrawals. Some investors may choose a different target date to adjust their desired asset allocation and level of risk.
But please remember that LifePath Portfolios are designed to be a single investment choice because of the built-in diversification and asset allocation strategy.
No.
Do I have to change my Portfolio every 5 years? Unless your retirement goals and strategies change, changes to your LifePath selection are not necessary.
No.
Can I exchange out of a LifePath Portfolio at any time?
Yes.
The date associated with each Portfolio is merely a target year for when you might begin to withdraw your money.
What if I am willing to take more or less risk than the Portfolio’s strategy suggests? You can choose a LifePath Portfolio with a different target year.
Does Ohio Deferred Compensation manage the Portfolio?
No.
LifePath Portfolios are index-based investments managed by BlackRock, Inc., the largest asset manager in the world.
877-644-6457
Ohio457.org
The use of asset allocation does not guarantee returns or insulate you from potential losses. Investing involves risk, including possible loss of principal.
LifePath Portfolios Asset Allocation as of June 30, 2018 LifePath Retirement 20.46% 3.98% 11.44% 3.48% 0.49% 51.31% 8.84%
Large and Mid-Cap Stocks Small Cap Stocks International Stocks Commodities Global Real Estate Domestic Bonds Domestic TIPS
LifePath 2020 23.22% 3.87% 14.09% 3.36% 0.99% 46.73% 7.73%
Large and Mid-Cap Stocks Small Cap Stocks International Stocks Commodities Global Real Estate Domestic Bonds Domestic TIPS
LifePath 2025 29.37% 3.05% 18.21% 3.37% 4.33% 35.91% 5.76%
Large and Mid-Cap Stocks Small Cap Stocks International Stocks Commodities Global Real Estate Domestic Bonds Domestic TIPS
LifePath 2030 34.59% 2.43% 21.66% 3.36% 7.17% 26.67% 4.12%
Large and Mid-Cap Stocks Small Cap Stocks International Stocks Commodities Global Real Estate Domestic Bonds Domestic TIPS
LifePath 2040 43.97% 1.32% 27.91% 3.39% 12.28% 9.88% 1.24%
Large and Mid-Cap Stocks Small Cap Stocks International Stocks Commodities Global Real Estate Domestic Bonds Domestic TIPS
LifePath 2045 46.38% 1.15% 30.38% 3.58% 14.49% 3.70% 0.31%
Large and Mid-Cap Stocks Small Cap Stocks International Stocks Commodities Global Real Estate Domestic Bonds Domestic TIPS
LifePath 2050 47.34% 1.06% 31.38% 3.54% 15.41% 1.26% 0.00%
Large and Mid-Cap Stocks Small Cap Stocks International Stocks Commodities Global Real Estate Domestic Bonds Domestic TIPS
LifePath 2055 47.41% 1.04% 31.50% 3.53% 15.49% 1.03% 0.00%
Large and Mid-Cap Stocks Small Cap Stocks International Stocks Commodities Global Real Estate Domestic Bonds Domestic TIPS
LifePath 2035 39.53% 1.86% 24.95% 3.35% 9.86% 17.88% 2.56%
Large and Mid-Cap Stocks Small Cap Stocks International Stocks Commodities Global Real Estate Domestic Bonds Domestic TIPS
LifePath asset allocation by portfolio Each of the LifePath Portfolios are pre-mixed, comprising investments with multiple asset classes in the U.S. and abroad. Each portfolio combines a blend of stock, bond, and money market investments seeking to produce competitive returns over a set period of time. The portfolios change their investment mix gradually as they approach the target dates. Like other funds, target date funds are subject to market risk and loss. Loss of principal can occur at any time, including before, at or after the target date. There is no guarantee that target date funds will provide enough income for retirement. In addition to the normal risks associated with equity investing, international investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, or from economic or political instability in other nations. Investments in fixed income securities are also subject to risk, including interest rate and credit risk. These LifePath Portfolios are not available to the public. They are only available through your deferred compensation plan. Since the LifePath Portfolios are not mutual funds, prospectuses are not available. However, fund profiles can be obtained by calling 877-644-6457 or visiting Ohio457.org. Account Executives are Registered Representatives of Nationwide Investment Services Corporation, member FINRA. NRM-2979OH-OH.27 (07/18)