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10 Essential Investment Terms Every Intuitive Surgical Employee Should Familiarize Themselves With

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Whether you live in Texas or Puerto Rico, you’ll receive quite a bit of useful information from this article. If you're new to investing following a departure from a Intuitive Surgical company, you may encounter some unfamiliar jargon. Understanding the following terms may help you become a more confident investor.

Portfolio

An investment portfolio is a collection of investments owned by an individual or an institution. Typically, a portfolio comprises a mix of asset classes such as stocks, bonds, and cash. This will typically include any additional assets from retirement not limited to your Intuitive Surgical pension, 401 (k), lump sum, and annuity payments. An investor's risk tolerance, time horizon, and investment goals generally determine a portfolio's asset allocation. 

Stock

A stock is a security that represents ownership (or equity) in a corporation. Typically after a specific year of service, most Intuitive Surgical employees will receive some form of stock as part of their benefits package. An investor who purchases shares of stock owns a piece of the company and has a claim on a portion of the assets and earnings. Shareholders are subject to the potential benefits and risks of that position, which means they can make money if the company does well or lose money if the company does poorly.

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Note:  The return and principal value of stocks fluctuate with changes in market conditions. Shares, when sold, may be worth more  or less than their original cost.

Bond

A bond is a fixed-income security issued by a government entity or corporation to raise money needed for ongoing operations or to finance new projects. Investors who buy bonds are essentially lending money to the issuing organization and become a creditor. Bondholders typically receive interest payments at regular, predetermined intervals. These payments are based on a fixed annual interest rate, also known as the bond's coupon rate. These interest rates also can effect your Intuitive Surgical lump sum and annuity. Bondholders can expect to be paid the bond's full face amount at its stated maturity date, barring default by the issuer.

Note:  The principal value of bonds may fluctuate with market conditions. Bonds redeemed prior to maturity may be worth more or  less than their original cost.

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Cash

Cash is another investment type, or asset class. It includes currency and cash alternatives that offer low risk and high liquidity.

Some examples of common cash alternatives are savings accounts, certificates of deposit (CDs), and U.S. Treasury bills.

Note:  The FDIC insures CDs and bank savings accounts, which generally provide a fixed rate of return, up to $250,000 per  depositor, per insured institution.

Note:  U.S. Treasury securities are backed by the full faith and credit of the U.S. government as to the timely payment of principal  and interest.

Mutual Fund

A mutual fund is a collection of stocks, bonds, and/or other securities purchased and managed by an investment company with funds from a group of investors. Shares are typically bought from and sold back to the investment company at the end of the trading day, with the price determined by the net asset value (NAV) of the underlying securities. Mutual funds offer investors the advantages of diversification and professional management. Diversification is a method used to help manage investment risk; it does not guarantee a profit or protect against investment loss. Understanding the level of diversification is important to making sure your retirement from Intuitive Surgical is as care free as possible. 

Exchange-Traded Fund

An exchange-traded fund (ETF) is also a portfolio of securities assembled by an investment company. But unlike mutual funds, ETF shares can be traded throughout the day on stock exchanges, like individual stocks, and the price may be higher or lower than the NAV because of supply and demand. ETFs typically have lower expense ratios than mutual funds, but you must pay a brokerage commission whenever you buy or sell ETFs, so your overall costs could be higher, especially if you trade frequently.

Note:  The return and principal value of mutual funds and ETFs fluctuate with changes in market conditions. Shares, when sold,  may be worth more or less than their original cost. Before investing, carefully consider the fund's investment objectives, risks,  fees, and expenses, which can be found in the prospectus. Read it carefully before investing.

Dividends

Dividends are the distributions of a company's earnings to shareholders, generally paid in cash or additional shares of the company's stock on a quarterly basis. The dividend amount per share is decided by the company's board of directors. Dividends must be reported as income by shareholders in the year received. Understanding the ins and outs of taxes is an often overlooked part of clients dealing with dividends purchased with lump sum payouts from Intuitive Surgical. Investors often view dividend payments as an indicator of the company's financial strength and future prospects.

Note:  Investing in dividends is a long-term commitment. In exchange for less volatility and more stable returns, investors should  be prepared for periods when dividend payers drag down, not boost, an equity portfolio. The amount of a company's dividend can  fluctuate with earnings, which are influenced by economic, market, and political events. Dividends are typically not guaranteed  and could be changed or eliminated.

Yield

Generally, the yield is the amount of current income provided by an investment. For stocks, the yield is calculated by dividing the total of the annual dividends by the current price. For bonds, the yield is calculated by dividing the annual interest by the current price. The yield is distinguished from the return, which includes price appreciation or depreciation. Investments seeking to achieve higher yields also involve a higher degree of risk.

Index

An index is a statistical composite used to track changes in economic conditions (such as inflation) or financial markets over time.

Investors use some indexes as benchmarks against which the performance of certain investments can be measured. For example, the S&P 500 Index is considered to be representative of the U.S. stock market in general, but there are hundreds of other indexes based on a wide variety of asset classes (stocks/bonds), market segments (large/small cap), and styles (growth/value).

Note:  The performance of an unmanaged index is not indicative of the performance of any specific investment. Individuals cannot  invest directly in an index. Past performance is not a guarantee of future results. Actual results will vary.

Bear/Bull Market

A bear market is generally defined as a period in which the prices of securities are falling, resulting in a downturn of 20% or more in several broad market indexes over a period of several months or longer. A bull market is a sustained period in which the market is rising and investor optimism is high, usually occurring over several months or years. Either of these market trends can influence the attitudes and behaviors of investors.

What type of retirement savings plan does Intuitive Surgical offer to its employees?

Intuitive Surgical offers a 401(k) retirement savings plan to help employees save for their future.

Is there a company match for contributions to the 401(k) plan at Intuitive Surgical?

Yes, Intuitive Surgical provides a company match for employee contributions to the 401(k) plan, subject to specific terms and conditions.

How can I enroll in the 401(k) plan at Intuitive Surgical?

Employees can enroll in the 401(k) plan at Intuitive Surgical by completing the enrollment process through the company’s benefits portal or contacting HR for assistance.

What is the eligibility requirement for participating in Intuitive Surgical's 401(k) plan?

To participate in Intuitive Surgical's 401(k) plan, employees typically need to meet certain eligibility requirements, such as being a full-time employee and completing a specified period of service.

Can I change my contribution amount to the 401(k) plan at Intuitive Surgical?

Yes, employees at Intuitive Surgical can change their contribution amounts to the 401(k) plan at any time, subject to the plan's guidelines.

What investment options are available in Intuitive Surgical's 401(k) plan?

Intuitive Surgical's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.

When can I access my 401(k) funds after leaving Intuitive Surgical?

After leaving Intuitive Surgical, employees can access their 401(k) funds according to the plan's distribution rules, which may include options like rollovers or cash withdrawals.

Does Intuitive Surgical offer financial advice for 401(k) participants?

Yes, Intuitive Surgical may provide access to financial advisors or resources to help employees make informed decisions about their 401(k) investments.

Are there any fees associated with Intuitive Surgical's 401(k) plan?

Yes, there may be fees associated with Intuitive Surgical's 401(k) plan, which can include administrative fees and investment-related fees, as outlined in the plan documents.

How often can I review my 401(k) account at Intuitive Surgical?

Employees can review their 401(k) account at Intuitive Surgical as often as they like, typically through the online benefits portal.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
Intuitive Surgical offers a comprehensive 401(k) plan known as the "Intuitive Surgical, Inc. 401(k) Plan." This is a defined contribution plan, meaning that employees can contribute a portion of their salary into the plan, and Intuitive Surgical may also contribute, particularly through profit-sharing based on the company’s earnings. The 401(k) plan allows participants to direct the investment of their accounts, with options including default investments for those who do not make specific selections. This plan was established to help employees save for retirement, and it provides flexibility in how funds can be managed and withdrawn, particularly in situations requiring a Qualified Domestic Relations Order (QDRO). The company also provides life and disability insurance at no cost to the employees and a stock purchase plan, allowing employees to buy Intuitive Surgical stock at a discounted rate. The 401(k) plan is administered by Intuitive Surgical itself, with the headquarters located in Sunnyvale, California. For years of service and age qualification for the 401(k) plan, the company follows standard practices where employees become eligible to participate upon meeting certain age and service requirements, though specific details on this aspect are typically found in the plan's summary documents.
In 2023 and 2024, Intuitive Surgical has experienced financial restructuring driven by the evolving economic environment. They have not announced large-scale layoffs, but there has been a steady focus on cost optimization​ (Intuitive Surgical)​ (Intuitive Surgical). The company has also revised long-term incentive plans and stock-based compensation, including phantom share awards for employees in China. These changes are tied to strategic performance metrics, which could impact the company’s workforce and benefits as it aligns with its financial goals​ (Intuitive Surgical).
Intuitive Surgical (ISRG) offers stock options and Restricted Stock Units (RSUs) through its 2010 Incentive Award Plan. Eligible employees, particularly in leadership and key roles, receive annual grants of stock options and RSUs. In 2022, RSUs with a target value of $1.5 million were granted to senior executives, aligning compensation with company performance. For 2023 and 2024, the company continues to offer RSUs and stock options to incentivize long-term retention, primarily to executives and employees in strategic roles.
Health Insurance and Healthcare Navigation: Intuitive provides comprehensive health, dental, and vision insurance, including telehealth services. Employees have access to Accolade, a healthcare navigator, which helps them manage medical inquiries and navigate the complexities of the healthcare system​ (Intuitive Surgical Careers)​ (Intuitive Surgical Careers). Mental Health and Emotional Support: Employees and their families can access mental health services through Lyra, which offers 12 free sessions per year. The platform is designed to streamline the process of finding the right therapist based on individual preferences​ (Intuitive Surgical Careers)​ (Intuitive Surgical Careers). Family Planning and Fertility Services: Intuitive offers fertility support through Progyny and Maven, providing in-vitro fertilization (IVF), surrogacy support, and postpartum care. These services include access to a network of fertility specialists and comprehensive pregnancy support​ (Intuitive Surgical Careers)​ (Intuitive Surgical Careers). Cancer and Chronic Disease Support: Employees benefit from specialized support services for cancer and chronic diseases like diabetes and obesity. They have access to second opinions and personalized treatment plans, along with concierge support for navigating complex care​ (Intuitive Surgical Careers)​ (Intuitive Surgical Careers). Other Notable Benefits: Intuitive provides gender-affirming care, virtual physical therapy, weight management programs, and services for caregivers. Employees also receive 8 weeks of paid parental leave, flexible time off, and coverage for surrogacy up to $20,000
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For more information you can reach the plan administrator for Intuitive Surgical at , ; or by calling them at .

https://investor.intuitivesurgical.com/news-releases/news-release-details/intuitive-announces-fourth-quarter-earnings-3 https://www.mddionline.com/robotics/intuitive-surgical-s-latest-acquisition-is-just-one-piece-of-a-much-bigger-puzzle https://wraltechwire.com/2023/08/03/robotic-surgery-manufacturer-closing-durham-operation-91-face-layoffs/ https://www.massdevice.com/johnson-johnson-cuts-nearly-350-surgical-robotics-jobs/ https://www.milliman.com/en/insight/interest-rates-pension-plans-implement-liability-driven-investment-strategy https://www.daypitney.com/insights/publications/2023/11/3-irs-publishes-2024-pension-plan-limitations/ https://valueyourpension.com/pbgc-vs-irc-vs-gatt-interest-rates-and-present-value-calculation-methods/ https://www.foxrothschild.com/publications/interest-rate-hikes-present-challenge-for-fully-funded-pension-plans https://www.milliman.com/en/ https://isrg.intuitive.com/node/19916/html https://careers.intuitive.com/en/employee-stories/benefits/five-intuitive-benefits-that-help-employees-thrive/ https://isrg.intuitive.com/investors-calculator https://www.fidelity.com/learning-center/personal-finance/retirement/company-stock https://creativeplanning.com/insights/financial-planning/how-to-use-the-net-unrealized-appreciation-nua-strategy-in-your-401k/ https://carlsoncap.com/articles/nua-net-unrealized-appreciation/ https://www.stordahlcap.com/insights/understanding-net-unrealized-appreciation-nua-and-its-tax-benefits https://qdro.com/retirement-qdro/INTUITIVE-SURGICAL-INCORPORATED-401K-PLAN/ https://simpleqdro.com/retirement-plans/INTUITIVE-SURGICAL-INCORPORATED-401K-PLAN/ https://investor.intuitivesurgical.com/sec-filings/sec-filing/10-k/0001035267-23-000019

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