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Understanding Risk Tolerance: A Guide for GP Strategies Corporation Employees Navigating Retirement Changes

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 GP Strategies Corporation 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 GP Strategies Corporation 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 GP Strategies Corporation 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 is the 401(k) plan offered by GP Strategies Corporation?

The 401(k) plan at GP Strategies Corporation is a retirement savings plan that allows employees to contribute a portion of their salary on a pre-tax basis, helping them save for retirement.

How can I enroll in the GP Strategies Corporation 401(k) plan?

Employees can enroll in the GP Strategies Corporation 401(k) plan by completing the enrollment process through the company’s benefits portal during the designated enrollment period.

What types of contributions can I make to my GP Strategies Corporation 401(k) plan?

Employees can make pre-tax contributions, Roth (after-tax) contributions, and may also be eligible for employer matching contributions in the GP Strategies Corporation 401(k) plan.

Does GP Strategies Corporation offer matching contributions to the 401(k) plan?

Yes, GP Strategies Corporation provides a matching contribution to eligible employees participating in the 401(k) plan, enhancing their retirement savings.

What is the vesting schedule for GP Strategies Corporation's 401(k) matching contributions?

The vesting schedule for GP Strategies Corporation's matching contributions typically follows a graded vesting schedule, which means employees gain ownership of the contributions over a period of time.

Can I take loans from my GP Strategies Corporation 401(k) plan?

Yes, GP Strategies Corporation allows employees to take loans from their 401(k) plan, subject to certain terms and conditions outlined in the plan documents.

What investment options are available in the GP Strategies Corporation 401(k) plan?

The GP Strategies Corporation 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to help employees diversify their portfolios.

How often can I change my investment choices in the GP Strategies Corporation 401(k) plan?

Employees can change their investment choices in the GP Strategies Corporation 401(k) plan at any time, allowing for adjustments based on personal financial goals.

What happens to my GP Strategies Corporation 401(k) plan if I leave the company?

If you leave GP Strategies Corporation, you have several options for your 401(k) plan, including rolling it over to another qualified plan, cashing it out, or leaving it with GP Strategies Corporation for future growth.

Is there a minimum contribution requirement for the GP Strategies Corporation 401(k) plan?

Yes, GP Strategies Corporation may have a minimum contribution requirement for employees participating in the 401(k) plan, which can vary based on the plan specifics.