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Understanding Risk Tolerance: A Guide for Digital Realty Trust Employees Navigating Retirement Changes

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The world of investing is very subjective--the investment plan that’s right for you depends largely upon the level of comfort that you have when it comes to risk. We'd like our clients from Digital Realty Trust to remember that you can’t completely avoid risk when it comes to investing, but it's possible for you to manage it.

There are two aspects of risk tolerance for Digital Realty Trust employees to consider: (1) the capacity of your investment plan itself to absorb losses, and (2) how comfortable you are personally with risk. The first aspect can be quantified--the more flexibility your investment plan has when it comes to potential loss, the more risk your plan can tolerate. For example, as we’ve discussed, a long investment time horizon may allow you to take on more risk than a short time horizon.

'You can’t completely avoid risk when it comes to investing, but it is possible for you to manage it..'

The second aspect, how comfortable you are personally with risk, is more of an emotional measure, and depends on many factors, including your objectives, life stage, personality, and investment experience. Some investors are comfortable with a high degree of risk, while others can tolerate only minimal risk. Individual risk tolerance is an important factor for Digital Realty Trust employees in deciding which individual investments are appropriate for them, as well as how their investment dollars should be allocated among different investment classes.

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Investors are typically grouped into three categories for purposes of discussing risk tolerance: aggressive (those who have a high degree of risk tolerance); moderate (those willing to accept some degree of risk), and conservative (those who are risk averse).

What type of retirement savings plan does Digital Realty Trust offer to its employees?

Digital Realty Trust offers a 401(k) retirement savings plan to its employees.

Does Digital Realty Trust match employee contributions to the 401(k) plan?

Yes, Digital Realty Trust provides a matching contribution to employee 401(k) contributions, subject to certain limits.

What is the eligibility requirement for employees to participate in the Digital Realty Trust 401(k) plan?

Employees of Digital Realty Trust are eligible to participate in the 401(k) plan after completing a specified period of service.

Can employees of Digital Realty Trust choose how their 401(k) contributions are invested?

Yes, employees of Digital Realty Trust can select from a variety of investment options for their 401(k) contributions.

What is the maximum contribution limit for the Digital Realty Trust 401(k) plan?

The maximum contribution limit for the Digital Realty Trust 401(k) plan aligns with the IRS limits, which may change annually.

Does Digital Realty Trust offer a Roth 401(k) option?

Yes, Digital Realty Trust offers a Roth 401(k) option, allowing employees to make after-tax contributions.

What happens to my 401(k) account if I leave Digital Realty Trust?

If you leave Digital Realty Trust, you can either roll over your 401(k) balance to another retirement account or leave it in the Digital Realty Trust plan, subject to the plan's rules.

Are there any fees associated with the Digital Realty Trust 401(k) plan?

Yes, there may be administrative fees associated with the Digital Realty Trust 401(k) plan, which are disclosed in the plan documents.

How often can employees change their contribution amounts in the Digital Realty Trust 401(k) plan?

Employees of Digital Realty Trust can change their contribution amounts at designated times throughout the year, as outlined in the plan guidelines.

Does Digital Realty Trust provide educational resources for employees regarding their 401(k) plan?

Yes, Digital Realty Trust offers educational resources and tools to help employees understand their 401(k) plan options and investment choices.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

Digital Realty Trust offers a 401(k) plan known as the "Digital Realty Trust, L.P. 401(K) PLAN" through Fidelity. This plan covers approximately 1,499 employees, providing them with options for retirement savings. Employees are eligible to contribute to the 401(k) plan, and Digital Realty Trust offers a matching contribution to help enhance retirement savings. As for pension plans, the details specific to Digital Realty Trust employees include qualifications based on years of service and age, but further specifics regarding the pension formula or plan name were not explicitly detailed in the documents reviewed. The 401(k) plan information and general retirement benefits were outlined across various documents, including retirement plan comparison charts for 2023 and specific plan details

Restructuring and Layoffs: Digital Realty Trust announced a series of layoffs and organizational restructuring in late 2023. This decision was driven by the need to streamline operations and reduce costs amid a challenging economic environment. The company aimed to enhance operational efficiency and better align its workforce with its strategic goals. Importance: Addressing these changes is crucial due to the current economic climate, which has seen fluctuating market conditions and increased pressure on companies to optimize their operations. Understanding these moves helps in assessing the broader impact on the job market and corporate strategies.

Digital Realty Trust (DLR) offers a combination of stock options and Restricted Stock Units (RSUs) as part of their compensation packages, particularly aimed at executives and high-level employees. These incentives are designed to align employee interests with the company’s performance and long-term shareholder value. In 2022, 2023, and 2024, Digital Realty Trust issued RSUs under its long-term incentive plans (LTIPs), granted based on performance metrics and tenure. Stock options typically follow a vesting schedule, where employees gain the right to exercise options after specific periods. RSUs at Digital Realty Trust are often given to senior management and other key contributors to foster retention and incentivize long-term growth. Eligibility for these programs typically includes employees at the Director level and above, but some RSUs are also extended to other tiers as part of strategic retention efforts. Digital Realty (DLR) emphasizes using performance-based RSUs to drive business outcomes and reward top talent, aligning with the company’s broader financial goals.

Digital Realty Trust Careers Page: The company's official website provides a general overview of employee benefits, including health insurance options, wellness programs, and employee assistance programs. However, detailed specifics for each year may not be available on the website. Employee reviews on Glassdoor suggest that Digital Realty Trust offers competitive health benefits, including medical, dental, and vision insurance. Employees have noted that the company provides a range of wellness programs and preventive care options. Indeed: Similar to Glassdoor, Indeed reviews highlight that the company provides comprehensive health insurance options and wellness benefits. Specific details about annual changes in benefits might be less clear.

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For more information you can reach the plan administrator for Digital Realty Trust at 120 Kearny St, Suite 800 San Francisco, CA 94104; or by calling them at (415) 738-6500.

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