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Understanding Risk Tolerance: A Guide for NRG Energy Employees Navigating Retirement Changes

Healthcare Provider Update: NRG Energy offers its employees a robust benefits package that includes medical, dental, vision, and mental health coverage. Employees can participate in a 401(k) plan with company matching, flexible spending accounts, and life and disability insurance. Additional perks include paid holidays, volunteer time, tuition reimbursement, and family medical leave 2. Healthcare costs in the United States are projected to continue rising through 2026, with insurers proposing significant premium increases for Affordable Care Act (ACA) plans. A recent analysis found that ACA insurers are seeking a median premium increase of 15% for 2026, marking the largest hike since 2018. This surge is attributed to factors such as the anticipated expiration of enhanced premium tax credits, rising medical costsincluding expensive medications and increased hospital staysand a shift in the risk pool towards higher-cost enrollees. Without the renewal of enhanced subsidies, out-of-pocket premiums for ACA marketplace enrollees could increase by more than 75% on average. Click here to learn more

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 NRG Energy 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 NRG Energy 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 NRG Energy 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 NRG Energy offer to its employees?

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

Is participation in the NRG Energy 401(k) plan mandatory for employees?

Participation in the NRG Energy 401(k) plan is voluntary; employees can choose whether or not to enroll.

What is the company match for the NRG Energy 401(k) plan?

NRG Energy matches a percentage of employee contributions to the 401(k) plan, up to a certain limit, which is detailed in the plan documents.

At what age can employees start contributing to the NRG Energy 401(k) plan?

Employees can start contributing to the NRG Energy 401(k) plan as soon as they are eligible, typically upon their date of hire.

How can employees at NRG Energy enroll in the 401(k) plan?

Employees at NRG Energy can enroll in the 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.

Does NRG Energy offer a Roth 401(k) option within its savings plan?

Yes, NRG Energy offers a Roth 401(k) option, allowing employees to make after-tax contributions to their retirement savings.

How often can employees change their contribution rates to the NRG Energy 401(k) plan?

Employees can change their contribution rates to the NRG Energy 401(k) plan on a quarterly basis or as specified in the plan guidelines.

What investment options are available in the NRG Energy 401(k) plan?

The NRG Energy 401(k) plan offers a range of investment options, including mutual funds, target-date funds, and other investment vehicles.

Can employees take loans against their 401(k) savings at NRG Energy?

Yes, employees may be able to take loans against their 401(k) savings at NRG Energy, subject to the terms of the plan.

What happens to my NRG Energy 401(k) if I leave the company?

If you leave NRG Energy, you can choose to roll over your 401(k) balance to another retirement account, withdraw the funds, or leave the money in the NRG Energy plan if allowed.