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Understanding Risk Tolerance: A Guide for Medical Mutual of Ohio 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 Medical Mutual of Ohio 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 Medical Mutual of Ohio 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 Medical Mutual of Ohio 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 Medical Mutual of Ohio offer?

Medical Mutual of Ohio offers a 401(k) retirement savings plan for its employees.

Does Medical Mutual of Ohio match employee contributions to the 401(k) plan?

Yes, Medical Mutual of Ohio provides a matching contribution to employee contributions, up to a certain percentage.

What is the eligibility requirement to participate in the Medical Mutual of Ohio 401(k) plan?

Employees of Medical Mutual of Ohio are eligible to participate in the 401(k) plan after completing a specified period of service.

How can employees of Medical Mutual of Ohio enroll in the 401(k) plan?

Employees can enroll in the Medical Mutual of Ohio 401(k) plan through the company's HR portal or by contacting the HR department.

What investment options are available in the Medical Mutual of Ohio 401(k) plan?

The Medical Mutual of Ohio 401(k) plan offers a variety of investment options, including mutual funds and target-date funds.

Can employees of Medical Mutual of Ohio take loans against their 401(k) savings?

Yes, Medical Mutual of Ohio allows employees to take loans against their 401(k) savings, subject to specific terms and conditions.

What is the vesting schedule for employer contributions in the Medical Mutual of Ohio 401(k) plan?

The vesting schedule for employer contributions at Medical Mutual of Ohio is outlined in the plan documents, typically based on years of service.

How often can employees change their contribution amounts in the Medical Mutual of Ohio 401(k) plan?

Employees can change their contribution amounts in the Medical Mutual of Ohio 401(k) plan at designated times throughout the year.

Does Medical Mutual of Ohio offer educational resources for employees regarding their 401(k) plan?

Yes, Medical Mutual of Ohio provides educational resources and tools to help employees understand their 401(k) options and investment choices.

What happens to my 401(k) savings if I leave Medical Mutual of Ohio?

If you leave Medical Mutual of Ohio, you can choose to roll over your 401(k) savings into another qualified retirement account or leave it in the Medical Mutual of Ohio plan, subject to certain conditions.