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Understanding Risk Tolerance: A Guide for Terex 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 Terex 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 Terex 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 Terex 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 purpose of Terex's 401(k) Savings Plan?

The purpose of Terex's 401(k) Savings Plan is to help employees save for retirement by allowing them to contribute a portion of their salary on a pre-tax basis.

How can Terex employees enroll in the 401(k) Savings Plan?

Terex employees can enroll in the 401(k) Savings Plan by completing the enrollment process through the company’s HR portal or by contacting the HR department for assistance.

What types of contributions can Terex employees make to the 401(k) Savings Plan?

Terex employees can make pre-tax contributions, Roth (after-tax) contributions, and may also be eligible for employer matching contributions.

Is there a company match for contributions to Terex's 401(k) Savings Plan?

Yes, Terex offers a company match for employee contributions to the 401(k) Savings Plan, subject to certain limits and conditions.

What is the vesting schedule for Terex's 401(k) employer match?

The vesting schedule for Terex's 401(k) employer match typically follows a graded vesting schedule, where employees earn rights to the employer contributions over a specified period.

At what age can Terex employees start withdrawing from their 401(k) Savings Plan?

Terex employees can generally start withdrawing from their 401(k) Savings Plan at age 59½, although there are specific conditions and penalties for early withdrawals.

Can Terex employees take loans against their 401(k) Savings Plan?

Yes, Terex allows employees to take loans against their 401(k) Savings Plan, subject to the plan's terms and conditions.

How often can Terex employees change their contribution percentage to the 401(k) Savings Plan?

Terex employees can typically change their contribution percentage to the 401(k) Savings Plan at any time, subject to the plan's rules.

What investment options are available in Terex's 401(k) Savings Plan?

Terex's 401(k) Savings Plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.

How can Terex employees access their 401(k) account information?

Terex employees can access their 401(k) account information through the company’s online portal or by contacting the plan administrator for assistance.