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Understanding Risk Tolerance: A Guide for Matson 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 Matson 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 Matson 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 Matson 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 plan does Matson offer to its employees?

Matson offers a 401(k) retirement savings plan to its employees.

Does Matson provide any employer match contributions to the 401(k) plan?

Yes, Matson offers an employer match on employee contributions to the 401(k) plan, subject to certain limits.

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

Employees of Matson are typically eligible to participate in the 401(k) plan after completing a specified period of service, which is outlined in the plan documents.

Can Matson employees make pre-tax contributions to their 401(k) accounts?

Yes, Matson employees can make pre-tax contributions to their 401(k) accounts, reducing their taxable income.

Are there any Roth contribution options available in Matson's 401(k) plan?

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

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

Matson's 401(k) plan includes a variety of investment options, such as mutual funds and target-date funds, allowing employees to choose according to their risk tolerance.

How often can Matson employees change their contribution amounts to the 401(k) plan?

Matson employees can change their contribution amounts to the 401(k) plan on a regular basis, typically during open enrollment periods or as specified in the plan guidelines.

What is the vesting schedule for Matson's employer match contributions in the 401(k) plan?

The vesting schedule for Matson's employer match contributions may vary, but it generally requires employees to work for a certain number of years before becoming fully vested.

Can Matson employees take loans against their 401(k) savings?

Yes, Matson allows employees to take loans against their 401(k) savings, subject to the terms and conditions of the plan.

What happens to Matson employees' 401(k) accounts if they leave the company?

If Matson employees leave the company, they have several options for their 401(k) accounts, including rolling over the balance to another retirement account or leaving it with Matson.