Types of risk presentation

Types of risk in your retirement account

This presentation is for educational purposes only. Neither Nationwide nor any of its representatives provide tax, financial or legal advice.

Investing involves market risk, including possible loss of principal and possible fluctuations in value.

The Nationwide Group Retirement Series includes unregistered group fixed and variable annuities and trust programs. The unregistered group fixed and variable annuities are issued by Nationwide Life Insurance Company. Trust programs and trust services are offered by Nationwide Trust Company, FSB, a division of Nationwide Bank. The general distributor for variable products is Nationwide Investment Services Corporation, member FINRA. Nationwide Mutual Insurance Company and Affiliated Companies, Home Office: Columbus, OH 43215-2220.

Nationwide, the Nationwide N and Eagle and Nationwide is on your side are service marks of Nationwide Mutual Insurance Company. © 2015 Nationwide

PNM-2606AO.5 (05/15)

• Not a deposit • Not FDIC or NCUSIF insured • Not guaranteed by the institution• Not insured by any federal government agency • May lose value

Types of riskTypes of risk

What types of risk will I face in myretirement account?

Types of risk4 Investment risk Types of risk4

Investing involves market risk, including possible loss of principal, and there is no guarantee that investment objectives will be achieved.

Types of risk5 Market risk/market volatility

Types of risk6 Market risk/market volatility

The Standard & Poor’s (S&P) 500 Index is an unmanaged, market capitalization-weighted index of 500 widely held stocks of large-cap U.S. companies that gives a broad look at how the stock prices of those companies have performed. It doesn’t incur the fees and expenses that an actual portfolio would incur, which would reduce performance if included.

You can’t invest directly in any market index.

*Source for index data: Commodity Systems, Inc. as of October 2012Past performance of an index is not an indicator of future results.

Growth of $1 invested in the S&P 500 Index from January 1950 to October 2012.

Types of risk7

cost

$0.22

$0.49

$0.76

cost

$3.55

$7.93

$12.45

cost

$11,838

$30.748

$45,604

Year

1985

2014

20254

Movie ticket2 Car3First class stamp1

Inflation risk

1 https://about.usps.com/news/national-releases/2013/pr13_077.htm (accessed 5/12/2015).2 National Association of Theater Owners, natoonline.org (2011).

3 Autoblog.com (March, 2012).4 Assumed inflation rate of 3.5%.

Types of risk8

Erosion of purchasing power

In 25 years $100,000 will be worth the equivalent of $47,761 today assuming 3% annual inflation or $29,530 assuming 5% annual inflation.

$100,000

$80,000

$60,000

$40,000

$20,000

0 5 10 15 20 25

$86,261

$74,409

$64,186

$55,368

$47,761

$78,353

$61,391

$48,102

$37,689

$29,530

Source: Standardandpoors.com (2011).

Inflation risk

Represents a 3% annual inflation

Represents a 5% annual inflation

Types of risk9 Interest rate risk

Types of risk10 Foreign investment risk

Investing involves market risk, including possible loss of principal, and there is no guarantee that investment objectives will be achieved.

Types of risk11

Source: Standardandpoors.com (2011).

Represents when the U.S. returns outperformed foreign returns

Represents when foreign markets outperformed U.S. markets

Foreign investment risk

Types of risk12 Investor error risk

Not monitoring

accountProcrastination

Timing the market

Underestimating your needs

13 Types of risk Summary

Despite market downturns, the value of the market has grown

Inflation risk is the risk of your money being worth less

Foreign investment risk is the risk of foreign markets not performing well

Investor error risks are those within your control

Market risk is the fluctuation of the value of investments

Interest rate risk is the potential

decrease in the amount of interest earned on fixed income investments

Investment risk is the risk of losing money on investments

Access your retirement account

nationwide.com/myretirement

1-800-772-2182