smart S A V E M O N E Y A N D R E T I R E T O M O R R O W Two Paths to Investing for Retirement Which one is right for you?

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1 smart S A V E M O N E Y A N D R E T I R E T O M O R R O W I N V E S T Two Paths to Investing for Retirement Which one is right for you? Massachusetts Deferred Compensation SMART Plan Office of State Treasurer Timothy P. Cahill

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3 Two Paths to Investing for Retirement When it comes to investing, people have different comfort levels and experience. To make the investment process as simple as possible, the Massachusetts Deferred Compensation SMART Plan offers you two paths to investing for retirement. right for you? Path 1: SMARTPath Retirement Funds Choose a SMARTPath Retirement Fund for a more diversified portfolio in one simple step. This path is designed for people who may not have the time, desire or experience to build and monitor their own diverse investment portfolio. Path 2: Build & Monitor Your Own Investment Portfolio Select your own mix of individual funds. This path is designed for people who want to build their own investment portfolio, monitor it and make adjustments over time. You can access additional help with Reality Investing Advisory Services, a suite of advisory services that includes Online Investment Guidance, Online Investment Advice and a Managed Account service. Which path is right for you? Ask yourself these questions: Do I have the desire to select my own mix of individual funds? (yes/no) Am I comfortable deciding how much to invest in each fund? (yes/no) Do I have the time to keep an eye on my investments and make changes as I get closer to retirement or when my circumstances change? (yes/no) If you answered no to any of these questions, then Path 1: SMARTPath Retirement Funds might be right for you. See page 4 for more information. If you answered yes to all of these questions, then Path 2: Build & Monitor Your Own Investment Portfolio might be your preferred strategy. See page 7. The SMARTPath Retirement Funds are not registered investments and interests in the funds have not been registered with the Securities and Exchange Commission. Thus, no prospectus is available for these funds. They are only available to eligible participants in the Massachusetts Deferred Compensation SMART Plan, which is a qualified retirement program. R E T I R E T O M O R R O W w w w. m a s s - s m a r t. c o m 2

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5 1path 1 SMARTPath Retirement Funds path 1 SMARTPath Retirement Funds Diversification 1 is one of the keys to a successful investment strategy, but choosing the individual funds and monitoring those funds over time can be challenging. Advantages of the SMARTPath Retirement Funds An investment strategy that lasts a lifetime. There are 11 funds to choose from based on your age and your expected retirement date, ranging from SMARTPath 2000 to Funds with dates furthest in the future have a higher concentration of stocks. As the target retirement date of the fund gets closer, and continuing for 15 years past that date, professional fund managers gradually adjust the fund to include more bond and shortterm investments. So by the time you move into retirement, your fund will be invested in a more appropriate mixture of stock, bond and short-term investments focused on preserving your money and producing income. This change will happen automatically you don t have to do a thing! Built-in diversification. You ve heard about the importance of diversification and how you should avoid putting all your eggs in one basket. Even though it feels like that s what you re doing when you choose one of the SMARTPath Retirement Funds, you re Two Paths to Investing for Retirement actually spreading your money across up to eight different investment options that make up the fund. Those different investment options are spread across various asset classes. Since market volatility may affect each asset class in a different manner, your SMARTPath Retirement Fund may be more capable of weathering the ups and downs of the market over the long term versus a nondiversified portfolio. Professionally managed funds. Decisions with respect to the appropriate allocation of underlying investment funds making up the SMARTPath Retirement Funds are managed by senior AllianceBernstein portfolio managers. These investment professionals are solely responsible for managing asset allocation funds. Each of the individual funds that make up a particular SMARTPath Retirement Fund is managed by a team with expertise in a specific asset class. While diversification and shifting to a more conservative investment mix over time both help to manage risk, doing so does not guarantee earnings growth. There is the potential to lose value in any investment program. The date in a Target Date Fund represents an approximate date when an investor would expect to start withdrawing their money. The principal value of the funds is not guaranteed at any time, including the target date. An Investment Strategy That Lasts a Lifetime This chart shows how the asset allocation management team gradually shifts from stocks toward bonds over time. Investment Mix (%) Age FOR ILLUSTRATIVE PURPOSES ONLY. Intended to illustrate possible investment portfolio allocations that represent an investment strategy based on risk and return. This is not intended as financial planning or investment advice. R E T I R E T O M O R R O W w w w. m a s s - s m a r t. c o m 4

6 Choosing a fund is simple. 1. Estimate your retirement date. You were born in = You plan to retire when you re 65 SMARTPath Retirement Fund 2035 Take the year you were born and your expected retirement age and add them together to get your retirement date. 2. Select your SMARTPath Retirement Fund. Pick the fund with the date closest to your retirement date. Vanguard Prime Money Vanguard Market Prime Fund Money - Inst Market SharesFund - Inst Shares SSgA Passive TIPS Vanguard SSgA Index Passive NL Series Prime TIPS Fund Money Index Class Market NL ASeries Fund Fund - Inst Class Shares A Vanguard Vanguard Prime Prime g Money Market Fund - Inst Shares SSgA Passive Bond State Money Vanguard SSgA SSgA Market Street Market Passive Passive Index S&P Prime 500 Fund Money TIPS Bond SL Flagship - Inst Market Ser. Index Market Fund Shares Series NL Series Index Class Fund Fund SL A Class - Inst AShares Ser. Class Fund Class A SSgA Passive g TIPS State SSgA Passive TIPS SSgA Index Street Index Passive NL Russell NL Series Series TIPS 2000 Fund Fund Index Index Class Class NL Securities Series A A Fund Class A PIMCO High Yield Lending SSgA PIMCO Fund - Passive Series Institutional High Fund Bond Yield Class Fund Class Market A- Institutional Index SL Ser. Class Fund Class SSgA SSgA Passive Passive g Bond Market Index SL Ser. Fund Class INVESCO Equity Bond Real State SSgA Market PIMCO INVESCO Estate Street Passive Index Daily Bond High Equity Securities EAFE SL Ser. Market Securities Fund Index Class SL A Ser. Fund Class A Yield Real Trust Fund Estate Class - Institutional Securities MA Class Trust Class MA PIMCO PIMCO High High Yield Yield Lending PIMCO Fund Fund Series -- High Institutional Institutional Fund Yield Class Fund Class Class T - Institutional Class SSgA Daily EAFE g INVESCO SL SSgA Series Daily Equity Fund Equity EAFE Real Class Real SL Estate T Series Estate Securities Fund Securities Class Trust Trust T Class Class MA INVESCO Equity Real MA Estate Securities Trust Class MA SSgA INVESCO Russell Equity g 2000 PIMCO Real INVESCO SSgA SSgA Index Estate High Equity Daily Russell SL Series Yield Securities EAFE 2000 Fund Real Fund SL Index - Trust Institutional Estate Class Securities Class MA Series SL Fund Series Class Trust Class MA Class Fund T Class SSgA SSgA Daily Daily EAFE EAFE g State SL SSgA SL Series Series Street Daily Fund Fund Passive EAFE Class Class SL Bond Series T T Market Fund Index Class Securities T SSgA S&P 500 Flagship SSgA SSgA Russell S&P Flagship Index Ser. SL Series Fund Class SSgA Russell 2000 Lending Ser. Fund Class Index Series Fund SL Series Fund Class Class Fund A SSgA Russell Class g 2000 SSgA Index Russell SL Series 2000 Fund Index Class SL Series Fund Class State Street Passive Treasury Inflation Protected SSgA S&P 500 Flagship Ser. Fund Class SSgA SSgA S&P S&P Flagship Flagship Securities SSgA S&P Ser. Ser. Index Fund 500 Fund Non-Lending Flagship Class Class Ser. Series Fund Fund Class Class A g Vanguard Prime Money Market Fund - Institutional Shares Vanguard Prime Money Vanguard Market Prime Fund Money - Inst Market SharesFund - Inst Shares SSgA Passive TIPS Vanguard SSgA Index Passive NL Series Prime TIPS Fund Money Index Class Market NL ASeries Fund - Inst Class Shares A Vanguard Prime g Vanguard Prime State Money Vanguard Money Street Market Market S&P Prime 500 Fund Fund Money Flagship -- Inst Inst Market Series Shares Shares Fund Class - Inst A Shares SSgA Passive g Bond SSgA SSgA Passive Passive TIPS Bond Index Market NL Series Index Fund SL Ser. Class Fund Class A SSgA Passive TIPS State Market Index Street NL Russell Index SL Series 2000 Ser. Fund Index Fund Class Securities Class A PIMCO SSgA Passive High Yield TIPS Lending SSgA SSgA PIMCO Fund Index Series Passive - NL Institutional Series Passive High Fund TIPS Bond Yield Class Fund Index Fund Class AClass NL Series A Fund Class A Market - Institutional Index SL Ser. Class Fund Class SSgA SSgA Passive Passive g Bond Bond State SSgA Market Market Street Passive Daily Index Index Bond EAFE SL SL Ser. Securities Market Ser. Fund Fund Index Class Class SL A Ser. Fund Class A INVESCO Equity Real PIMCO INVESCO Estate High Equity Securities Yield Real Trust Fund Estate Class - Institutional Securities MA Class Trust Class MA PIMCO High Yield Lending Fund Series - Institutional Fund Class Class T PIMCO High Yield PIMCO Fund - High Institutional Yield Fund Class - Institutional Class SSgA Daily EAFE g INVESCO SL INVESCO SSgA Series Daily Equity Fund Equity EAFE Real Class Real SL Estate T Series Securities Estate Fund Securities Class Trust Trust T Class MA INVESCO Equity Real Class MA INVESCO Equity g Estate Securities Trust Class MA SSgA Russell 2000 PIMCO Real INVESCO SSgA SSgA Index Estate High Daily Russell SL Yield Equity Series Securities Fund Real EAFE 2000 Fund - Institutional Trust Estate Class Securities SL Index Class Class MA Trust Class MA Series SL Fund Series Class Fund T Class SSgA Daily g EAFE State SSgA Daily EAFE SL SSgA SL Series Street Series Daily Passive Fund Fund EAFE Class Bond Class SL Series Market T Fund Index Class Securities T SSgA S&P 500 Flagship Lending SSgA SSgA Russell Series Ser. S&P 500 Fund 2000 Flagship Class Index A Ser. SL Series Fund Class SSgA Russell 2000 Fund Class SSgA Russell g 2000 State SSgA Index Index Street Russell SL SL Passive Series Series 2000 Treasury Fund Fund Index Class Class Inflation SL Series Protected Fund Class SSgA S&P 500 Flagship SSgA S&P 500 Flagship Ser. Fund Class SSgA S&P 500 Flagship Securities SSgA S&P Ser. Ser. Index Fund 500 Fund Non-Lending Flagship Class Class Ser. Series Fund Fund Class Class A g Vanguard Prime Money Market Fund - Vanguard Prime Institutional Money Vanguard Market Shares Prime Fund Money - Inst Market SharesFund - Inst Shares SSgA Passive TIPS Vanguard SSgA Index Passive NL Series Prime TIPS Fund Money Index Class Market NL A Series Fund Fund - Inst Class Shares A Vanguard Vanguard Prime Prime Money Money Market Market Fund Fund -- Inst Inst Shares Shares SSgA Passive g Bond State Vanguard SSgA SSgA Market Street Passive Passive Index S&P Prime TIPS Bond 500 Money SL Flagship Market Ser. Index Market Fund Series NL Series Index Class Fund Fund SL A Ser. Class - Inst Class Fund AShares Class A SSgA SSgA Passive Passive g TIPS TIPS State SSgA Index Index Street Passive NL NL Russell Series Series TIPS Fund 2000 Fund Index Index Class Class NL Securities Series A PIMCO High Yield Fund Class A SSgA PIMCO Fund - Institutional Passive High Bond Yield Fund Class Market - Institutional Index SL Ser. Class SSgA Passive Bond Lending Fund Class SSgA Passive Bond Market Market Series Index Index Fund SL SL Class Ser. Ser. A Fund Fund Class Class A INVESCO Equity g SSgA Passive Bond Market Index SL Real Ser. Fund Class A State PIMCO INVESCO Estate Street High Equity Daily Securities EAFE Yield Real Securities Trust Fund Estate Class - Institutional Securities MA Class Trust Class MA PIMCO PIMCO High High Yield Yield Lending PIMCO Fund Fund Series -- High Institutional Institutional Fund Yield Class Fund Class Class T SSgA Daily EAFE SL - Institutional Class SSgA Series Daily Fund EAFE Class Real SL T Series Estate Fund Class Trust T INVESCO Equity g INVESCO Real Class MA INVESCO Equity Real INVESCO Estate Estate Equity Equity Securities Securities Real Real Estate Trust Estate Trust Securities Class Class Securities MA MA Trust SSgA Russell 2000 Trust Class Class MA MA g PIMCO SSgA SSgA Index High Daily Russell SL Series Yield EAFE 2000 Fund Fund SL Index - Institutional Class Series SL Fund Series Class Class Fund T Class SSgA SSgA Daily Daily EAFE EAFE g SL SSgA SL Series Series Daily Fund Fund EAFE Class Class SL Series T SSgA S&P 500 Flagship State Street Fund Class T SSgA SSgA Ser. Russell S&P Fund Passive Flagship Class Bond Market Index Securities Index Ser. SL Series Fund Class SSgA Russell 2000 Fund Class SSgA Russell 2000 Lending SSgA Index Index Russell Series SL SL Series Series Fund 2000 Fund Class Fund Index A Class Class SL Series Fund Class g SSgA S&P 500 Flagship State SSgA Street S&P 500 Passive Flagship Treasury Ser. Inflation Fund Class Protected SSgA S&P 500 Flagship SSgA S&P Ser. Ser. Fund 500 Fund Flagship Class Class Securities Index Non-Lending Ser. Series Fund Fund Class Class A SMARTPath 2000 Retirement Fund SMARTPath 2005 Retirement Fund SMARTPath 2010 Retirement Fund SMARTPath 2015 Retirement Fund Vanguard Prime Money Vanguard Market Prime Fund Money - Inst Market SharesFund - Inst SSgA Passive TIPS Vanguard SSgA Index Passive NL Series Prime TIPS Fund Money Index Class Market NL ASeries Fund Fund - Inst Cla g State S Vanguard Vanguard Street Prime Prime S&P 500 Money Vanguard Money Flagship Market Market Series Prime Fund Money - Class - Inst Inst Market AShares Fund - Inst g SSgA Passive Bond SSgA SSgA Market Passive Passive Index TIPS Bond SL Ser. Index Market Fund NL Series Index Class Fund SL A State Ser. Clas Fun SSgA Street Passive Russell TIPS 2000 Index Index NL Series Securities SSgA Passive TIPS SSgA Index Passive NL Series TIPS Fund Fund Index Class Class NL Series A A Fund Cla PIMCO Lending High Series Yield Fund SSgA PIMCO Fund Class - AInstitutional Passive High Bond Yield Fund Class Market - Institutional Index SL Ser. Class g SSgA Passive Bond Fun Market Index SL Ser. Fund Class INVESCO State SSgA Street Passive Equity Daily Bond Real EAFE SSgA Market PIMCO INVESCO Estate Securities Passive Index Bond SL Ser. Market Fund Index Class SL A Ser. Fun High Equity Securities Yield Real Trust Fund Estate Class - Institutional Securities MA Lending Class Trust PIMCO Series High Yield Fund PIMCO High Yield PIMCO Class Fund T Fund -- High Institutional Institutional Yield Fund Class Class - Institutional Class g SSgA INVESCO Daily Equity EAFE Real SL INVESCO SSgA Estate Series Daily Securities Fund Equity EAFE Class Real SL Trust T Series Estate Class Fund Securities MA Class Trust T g INVESCO INVESCO Equity Equity Real Real Estate Estate Securities Securities Trust Trust Class Class MA MA SSgA PIMCO Russell High Yield 2000 Fund INVESCO SSgA SSgA Index - Institutional Equity Daily Russell SL Series Class Real Estate Securities Trust EAFE 2000 Fund SL Index Class g Series SL Fund Series Class Fund T Cla State SSgA SSgA Street Daily Daily Passive EAFE EAFE SL SSgA SL Bond Series Series Daily Market Fund Fund EAFE Index Class Class SL Securities Series T SSgA S&P 500 Flagship Fund Class T Lending Series Fund SSgA SSgA Class Ser. Russell S&P A Fund Flagship Class Index Ser. SL Series Fund Class SSgA Russell 2000 Fund Clas SSgA Russell 2000 SSgA Index Index Russell SL SL Series Series 2000 Fund Fund Index Class Class g State Street Passive Treasury Inflation Protected SL Series Fund Cla SSgA S&P 500 Flagship SSgA S&P 500 Flagship Ser. Fund Class SSgA Securities S&P Index 500 Flagship Non-Lending SSgA S&P Ser. Ser. Series Fund 500 Fund Flagship Fund Class Class Class Ser. A Fund Class SMARTPath 2020 Retirement Fund Vanguard Prime Money Vanguard Market Prime Fund Money - Inst Market SharesFund - Inst SSgA Passive TIPS Vanguard SSgA Index Passive NL Series Prime TIPS Fund Money Index Class Market NL ASeries Fund Fund - Inst Cla g State S Vanguard Vanguard Street Prime S&P Prime 500 Money Vanguard Money Flagship Market Market Series Prime Fund Money - Class - Inst Inst Market AShares Fund - Inst SSgA Passive Bond SSgA SSgA Market Passive Passive Index TIPS Bond SL Ser. Index Market Fund NL Series Index Class Fund SL A g State Ser. Clas Fu SSgA Street Passive Russell SSgA Passive TIPS TIPS SSgA 2000 Index Index Index Passive NL Securities NL Series Series TIPS Fund Fund Index Class Class NL Series A A Fund Cla PIMCO Lending High Series Yield Fund SSgA PIMCO Fund Class - AInstitutional Passive High Bond Yield Fund Class Market - Institutional Index SL Ser. Class Fun g SSgA Passive Bond Market Index SL Ser. Fund Class INVESCO State SSgA Street Passive Equity Daily Bond Real EAFE SSgA Market PIMCO INVESCO Estate Securities Passive Index Bond SL Ser. Market Fund Index Class SL A Ser. Fu High Equity Securities Yield Real Trust Fund Estate Class - Institutional Securities MA Lending Class Trust PIMCO Series High Yield Fund PIMCO High Yield PIMCO Class Fund T Fund -- High Institutional Institutional Yield Fund Class Class - Institutional Class g SSgA INVESCO Daily Equity EAFE Real SL INVESCO SSgA Estate Series Daily Securities Fund Equity EAFE Class Real SL Trust T Series Estate Class Fund Securities MA Class Trust T g INVESCO INVESCO Equity Equity Real Real Estate Estate Securities Securities Trust Trust Class Class MA MA SSgA PIMCO Russell High Yield 2000 Fund INVESCO SSgA SSgA Index - Institutional Equity Daily Russell SL Series Class Real Estate Securities Trust EAFE 2000 Fund SL Index Class Series SL Fund Series Class Fund T Cla g State SSgA SSgA Street Daily Daily Passive EAFE EAFE SL SSgA SL Bond Series Series Daily Market Fund Fund EAFE Index Class Class SL Securities Series T SSgA S&P 500 Flagship Fund Class T Lending SSgA SSgA Ser. Russell S&P Fund Flagship Class Index Ser. SL Series Fund Class SSgA Russell Series Fund 2000 Class Fund Clas SSgA Russell 2000 SSgA Index Index A Russell SL SL Series Series 2000 Fund Fund Index Class Class SL Series Fund Cla SSgA S&P 500 Flagship SSgA S&P 500 Flagship Ser. Fund Class SSgA S&P 500 Flagship SSgA S&P Ser. Ser. Fund 500 Fund Flagship Class Class Ser. Fund Class SMARTPath 2025 Retirement Fund Vanguard Prime Money Vanguard Market Prime Fund Money - Inst Market SharesFund - Ins SSgA Passive TIPS Vanguard SSgA Index Passive NL Series Prime TIPS Fund Money Index Class Market NL A Series Fund Fund - Inst Cl g Vanguard Prime Money Market Fund - Inst Shares State SSgA Vanguard Street Passive S&P Prime Bond 500 Money Vanguard Flagship SSgA SSgA Market Market Series Prime Passive Passive Index Fund Money TIPS Bond SL Ser. Class - Inst Market Index Market Fund ASharesFund - Ins NL Series Index Class Fund SL A Ser. Cla Fu g State SSgA SSgA Street Passive Passive Russell TIPS TIPS 2000 SSgA Index Index Index Passive NL NL Securities Series Series TIPS Fund Fund Index Class Class NL Series A A Fund Cl Lending PIMCO SSgA PIMCO Passive High Bond Yield Fund Market - Institutional Index SL Ser. Clas SSgA Passive Series High Yield Fund Bond Class Fund Fu Market A- Institutional Class Index SL Ser. Fund Class g State INVESCO SSgA Street Passive Equity Daily Bond EAFE SSgA Real Market PIMCO INVESCO Securities Passive Index Bond SL Ser. Market Fund Index Class SL A Ser. Fu Estate High Equity Securities Yield Real Trust Fund Estate Class - Institutional Securities MA Class Trus Lending PIMCO PIMCO Series High High Yield Fund Yield PIMCO Class Fund Fund T -- High Institutional Institutional Yield Fund Class Class - Institutional Clas g SSgA Daily EAFE SL INVESCO SSgA Series Daily Fund Equity EAFE Class Real SL T INVESCO Series Estate Fund Securities Class Trust T INVESCO Equity Equity Real Real Estate INVESCO Equity Real Estate Estate Securities Securities Securities Trust Class Trust Trust MA INVESCO Equity Real Estate Class Class Securities MA MA Trus g PIMCO SSgA Russell High Yield 2000 Fund SSgA SSgA Index - Institutional Daily Russell SL Series EAFE 2000 Class Fund SL Index Class Series SL Fund Series Class Fund T Cl g State SSgA SSgA Daily Daily EAFE EAFE SL SL Series Series Fund Fund Class Class T SSgA Street S&P 500 Passive SSgA Flagship Bond Market Daily EAFE SSgA SSgA Ser. Russell S&P Fund Index SL Flagship Class Securities Series Fund Class T Lending Index Ser. SL Series Fund Class SSgA Russell Series Fund 2000 Fund Cla SSgA Russell 2000 SSgA Class Index Index A Russell SL SL Series Series 2000 Fund Fund Index Class Class SL Series Fund Cl SSgA S&P 500 Flagship SSgA S&P 500 Flagship Ser. Fund Class SSgA S&P 500 Flagship SSgA S&P Ser. Ser. Fund 500 Fund Flagship Class Class Ser. Fund Class SMARTPath 2030 Retirement Fund SMARTPath Retirement Funds Vanguard Prime Money Vanguard Market Prime Fund Money - Inst Market Shares g Fund - Inst Shares Vanguard Prime Money Vanguard Market Prime Fund Money - Inst Market Shares State Street S&P 500 Flagship Series Fund Class A g State Street S&P 500 Flagship Series Fund Class A Fund - Ins SSgA Passive g TIPS State Vanguard SSgA Index Street Passive NL Series Prime Russell TIPS Fund Money 2000 Index Index Class Market NL Securities ASeries Fund Fund - Inst Class Shares A g State SSgA Street Passive Russell TIPS 2000 Vanguard SSgA Index Index Passive NL Securities Series Prime TIPS Fund Money Index Class Market NL A Vanguard Prime Money Market Fund - Inst Series Fund Fund - Inst C SSgA Vanguard Passive Prime Bond Lending Money Vanguard SSgA SSgA Market Passive Passive Series Market Prime Index Fund Fund Money TIPS Bond SL Class Ser. - Inst Index Market Fund AMarket SharesFund - Inst Shares NL Series Index Class Fund SL A Ser. Class Fund Class A Lending Vanguard Prime Money Market Fund - Inst SSgA Vanguard Passive Series Prime Fund Bond Money Class Vanguard SSgA SSgA Market A Market Prime Fund Money - Inst Market SharesFund - Ins Passive Passive Index TIPS Bond SL Ser. Index Market Fund NL Series Index Class Fund SL A Ser. Cla Fu SSgA SSgA Passive Passive g TIPS TIPS State SSgA Index Index Street Passive NL NL Daily Series Series TIPS EAFE Fund Fund Index Securities Class Class NL Series A Fund Class A g State SSgA Street Passive Daily TIPS EAFE PIMCO High Yield SSgA PIMCO Fund - Institutional Passive High Bond Yield Fund Class Market - Institutional Index SL Ser. Class SSgA Passive TIPS SSgA Index Securities Index Passive NL NL Series Series TIPS Fund Fund Index Class Class NL Series A Fund C SSgA Passive Bond Lending Fund Class Market Series Index Fund SL Class Ser. T Fund Class Lending PIMCO Series High Yield Fund SSgA Class PIMCO Fund Passive T - Institutional High Bond Yield Fund Class Market - Institutional Index SL Ser. Clas Fu INVESCO SSgA Passive Equity g Bond SSgA Market Passive Index Bond SL Ser. Market Fund Index Class SL A Ser. Fund Class A Real INVESCO PIMCO INVESCO Estate Equity High Equity Securities Real Yield Real Estate Trust Fund Estate Securities Class - Institutional Securities MATrust Class Trust Class SSgA Passive Bond Market Index SL Ser. Fund Class Class MA g MA INVESCO INVESCO SSgA Passive Equity Equity Real Bond SSgA Real Estate Market Passive PIMCO INVESCO Estate Securities Index Bond High Equity Securities SL Trust Ser. Market Yield Real Trust Class Fund Fund Estate Class MA Index Class SL A Ser. Fu - Institutional Securities MA Class Tru PIMCO PIMCO High High Yield g Yield PIMCO Fund Fund High -- High Institutional Institutional Yield Yield Fund Fund - Class Institutional Class - Class Class g State PIMCO High Yield Fund - Institutional Class INVESCO SSgA Daily Equity EAFE Real SL Series Estate Fund Securities Class Trust T PIMCO Street High Passive Yield Bond SSgA Daily EAFE SL Series Fund Class T PIMCO Fund Market - High Institutional Index Yield Securities Fund Class - Institutional Clas INVESCO Equity g State Real Class MA SSgA Daily EAFE SL Estate Securities Trust Class MA INVESCO SSgA Series Daily Fund Equity EAFE Class Real SL T Series Estate Fund Securities Class Trus T INVESCO Equity Real INVESCO Street Estate Equity Passive Securities Real Bond Trust Estate Market Class Securities Index Securities MA Trust Class MA Lending Series Fund Class A SSgA Russell 2000 INVESCO Equity Real Estate Securities Trust Class MA Lending SSgA SSgA Index Daily Russell Series SL Series Fund EAFE 2000 Fund Class SL Index Class A Series SL Fund Series Class Fund T Class SSgA INVESCO Russell Equity 2000 Real INVESCO Estate Equity Securities Real Trust Estate Class Securities MA Tru SSgA Daily EAFE SL Series Fund Class SSgA SSgA Index Daily Russell SL Series EAFE 2000 Fund SL Index Class Series SL Fund Series Class Fund T C SSgA Daily EAFE g SSgA S&P 500 Flagship State SL SSgA Series Street Daily Fund Class T SSgA Daily EAFE SL Series Fund Class SSgA SSgA Ser. Russell S&P Fund Passive EAFE SL Flagship Class Treasury Series Inflation Fund Class Protected T FOR ILLUSTRATIVE PURPOSES ONLY. Asset allocations as of December 31, The Index Ser. SL Fund Class SSgA Daily EAFE SL SSgA Series Daily Fund EAFE Class SL Series T Fund Class T SSgA Russell 2000 Fund Class SSgA S&P 500 Flagship Index SL Series Fund Class SSgA SSgA Ser. Russell S&P Fund Flagship Class Index Ser. SL Series Fund Class SSgA Russell 2000 Securities SSgA Index Russell SL Index Series 2000 Non-Lending Fund Index Class SL Series Series Fund Fund Class Class A allocations shown here for SMARTPath Retirement Funds are subject to change. The allocations are based on an investment SSgA Russell 2000 Fund Cla SSgA strategy Russell based 2000 on SSgA risk Index Index and Russell SL return. SL Series Series 2000 This Fund Fund is Index not Class Class SL Series Fund C SSgA S&P 500 Flagship SSgA S&P 500 Flagship Ser. Fund Class SSgA S&P 500 Flagship SSgA S&P Ser. Ser. Fund 500 Fund Flagship Class Class Ser. Fund Class intended as financial planning or investment SSgA advice. S&P 500 Fund Flagship SSgA data S&P 500 Flagship Ser. Fund Class SSgA S&P 500 Flagship SSgA sheets S&P Ser. Ser. Fund 500 are Fund available Flagship Class Class at Ser. Fund Class > Invest > Fund Fact Sheets. 5 w w w. m a s s - s m a r t. c o m S A V E M O N E Y A N D

7 Two Paths to Investing for Retirement 3. Deferring less than 100% of your contribution amount to your chosen SMARTPath Retirement Fund may result in an unintended overlap of investments. Select your SMARTPath Retirement Fund here. Need help? Contact your local representative at (877) (option 2), or go to > Contact Us > Find Your Local Representative. 2 Perhaps you want to build and monitor your own investment portfolio. Turn the page to find out more. R E T I R E T O M O R R O W w w w. m a s s - s m a r t. c o m 6

8 2path 2 Build & Monitor Your Own Investment Portfolio path 2 Build & Monitor your own investment portfolio If you prefer to select your investment options on your own, you may enjoy building your own investment portfolio through the SMART Plan. You can always review and evaluate your selections with the help of Reality Investing. Determine your own investment strategy The SMART Plan offers you a broad array of funds across various asset classes. A list of the investment options available through the SMART Plan can be found in your enrollment kit or by going to > Invest > Investment Options. 2 Keep in mind that to build an investment portfolio, you need to have a sound strategy based on three things: your savings TARGET, your TIME horizon and your TOLERANCE for risk. Your Savings TARGET In choosing your investment strategy, consider the amount of money you want to save and invest, as well as any other retirement plans or assets you or your spouse might have. Keep in mind that saving and investing through the SMART Plan may be only one of your financial goals. You may have other financial goals, both short and long term. Be sure to balance all of your goals when making investment decisions. Your TIME Horizon The amount of time you have to invest in the SMART Plan before you start making withdrawals is also very important. If you are many years away from retirement, you may be willing to take more risk with your money and invest more aggressively. When you re closer to retirement, your investment strategy may lean more toward investments with less risk because they ll have less time to recover should they fall in value. The market goes up and down. Be sure that your investment mix is appropriate to meet your short-term and long-term goals. You may have many years in retirement, so you might consider the benefits of maintaining some assets in investments that are likely to outpace inflation and provide some growth. Your Risk TOLERANCE Risk tolerance is your comfort level with the ups and downs in the value of your investments. You don t want to lose sleep if your account value declines; however, you ll also need to earn a rate of return that is appropriate for your goals. You need to create an investment mix that provides a balance between safety and growth that you are comfortable with and that will help you work toward your goals. Choosing Your Investments Knowing the type of investor you are is critical to building the investment mix that s right for you. Complete the survey on the next page to help identify your risk tolerance, your desired investment return and, ultimately, your investment style. Please consider the investment objectives, risks, fees and expenses carefully before investing. For this and other important information, you may obtain investment option performance, Fund Fact Sheets, mutual fund prospectuses and disclosure documents from your registered representative or the Web site at Contact TD AMERITRADE at (866) for the prospectuses of funds offered through the Self-Directed Brokerage Account. Read them carefully before investing. An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in the fund. 7 w w w. m a s s - s m a r t. c o m S A V E M O N E Y A N D

9 Two Paths to Investing for Retirement Determine Your Risk Tolerance Circle the number that describes how strongly you agree or disagree with the following statements: 1. I am a knowledgeable investor who understands the trade-off between risk and return and am willing to accept a greater degree of risk for potentially higher returns. Disagree Agree I am willing to invest on a long-term basis. Disagree Agree If one of my investments dropped 20% in value over six months due to a stock market fluctuation, I would hold on to that investment, expecting it to recover its value. Disagree Agree I have savings vehicles other than my SMART Plan that make me feel secure about my financial future. Disagree Agree points: Moderate Investing Style You re probably an investor who prefers some balance between low- and high-risk investments, and you are comfortable with some market volatility. Review your situation at least once a year to make sure you re still comfortable with how you re allocating your money to various investment options. As a moderate investor, you may want to consider selecting a mix that includes some investments that are in the middle of the investment risk/ return potential points: Aggressive Investing Style You re probably an investor who s comfortable with taking on the higher risk associated with the chance for higher returns. You re comfortable knowing that your investments can lose significant value at times as you pursue higher returns over the long term. Review your situation at least once a year, and keep in mind how much time you have until retirement. As an aggressive investor, you may want to consider selecting investments that have higher risk/return potential. Select Your Own Investment Options The SMART Plan offers you a broad array of funds across various asset classes. A list of the investment options available through the SMART Plan can be found in your enrollment kit or by going to > Invest > Investment Options. 2 Monitor Your Investment Portfolio Once you ve determined your investment strategy and selected specific funds, it s important to monitor your portfolio. The Scheduled Rebalancing tool allows you to rebalance your portfolio s allocations to stay in sync with your investment strategy automatically and at a frequency that you select. To access the Scheduled Rebalancing 3 tool, go to > Account Access > Manage Investments > Reallocate Balance. 3 For online account access, first-time users must register and login is required. Now add up the numbers you circled above: Mark Your Path Use the following as a general guide in determining your investing style. 4-8 points: Conservative Investing Style You re probably an investor who is comfortable with less risk for potentially lower returns. But remember: Not having enough money when you retire is a big risk, too! Keep in mind how much time you have until retirement and the effect that inflation may have on your investments. As a conservative investor, you may want to consider selecting investments that have lower risk/return potential. Risk vs. Return Return Potential High Low Money Market Bonds 6 Large Cap Small Cap 5 Risk Potential Specialty 4 International 3 High This chart is FOR ILLUSTRATIVE PURPOSES ONLY and does not predict or guarantee the returns of any given asset class. Source for Risk Tolerance Survey and Risk vs. Return chart: Great-West Retirement Services R E T I R E T O M O R R O W w w w. m a s s - s m a r t. c o m 8

10 Asset Allocation Many investment professionals and financial planners believe that an important factor influencing a portfolio s performance is not market timing or picking just the right stock it s how you mix your investments among cash equivalents, bonds and stocks. The fancy name for this is asset allocation. Many financial experts have concluded that 90% of a portfolio s performance results from how the invested money is divided up among the three basic asset classes of cash equivalents, bonds and stocks. Investment Selection Timing Asset Allocation (How you mix cash, stocks and bonds) Additional Assistance with Your Investment Reality Investing Advisory Services Reality Investing Advisory Services (Advisory Services) is a behavior-based approach to investing that provides investment advisory tools and services based upon the level of involvement you desire in managing your investments. You can choose as much or as little help as you need. Advisory Services includes Online Investment Guidance, Online Investment Advice and a Managed Account service for personal and professional investment assistance and account management. Online Investment Guidance This online tool asks additional questions about how much you want to invest, your level of comfort with risk, and your financial needs for the future. It then provides you with a personalized asset allocation and savings rate recommendation that you can use as a guide when building your portfolio from the investment options available in the SMART Plan. There is no fee to use Online Investment Guidance. Online Investment Advice The Online Investment Advice tool takes the asset allocation model that Online Investment Guidance provides and recommends specific investment options from the investments available within the SMART Plan. It also suggests how much to allocate to each investment option based on your investment objectives. You have the freedom and flexibility to implement your own investment choices and manage them online and generate new recommendations when your situation changes. The Online Investment Advice tool has a $25 annual fee, which is assessed to your account at $6.25 quarterly. Managed Account This service may be the strategy for more reluctant investors or busy investors who lack the time, interest or confidence to manage their own accounts, preferring instead to have an investment advisory services firm select and manage the funds within the SMART Plan for them. The Managed Account service goes beyond advice and asset allocation recommendations in that it provides ongoing professional asset management at the individual participant level. Participants receive a personalized and strategically designed retirement portfolio that is automatically managed quarter to quarter, and that reflects their unique time frame, personal retirement information, including a Social Security benefit estimate, and household financial picture. The Managed Account service provides participants with an effectively designed, diversified and objectively managed option. There is no guarantee that participation in the Reality Investing Advisory Services will result in a profit or that your account will outperform a non-managed account portfolio. Diversification of an investment portfolio does not ensure a profit and does not protect against loss in declining markets. Advised Assets Group, LLC (AAG), a wholly owned subsidiary of Great-West Life & Annuity Insurance Company, serves as your investment Source: Great-West Retirement Services w w w. m a s s - s m a r t. c o m S A V E M O N E Y A N D

11 Two Paths to Investing for Retirement Need help? Your local representative is available to help you determine an investment strategy and select investment options available through the SMART Plan that may be right for you. To meet with your local representative, call (877) (option 2) or go to smart.com > Contact Us > Find Your Local Representative. 2 manager and adviser. AAG partners with Ibbotson Associates for the technology that automates and simplifies the management of your account. You supply the information about your goals and finances, and AAG and Ibbotson will pick your investments and manage your account for you. An annual fee based on your account balance will be assessed to your account quarterly if you use the Managed Account. For instance, if you have a $10,000 account balance, the annual fee to have your account managed for you would be $55 per year. That s only $13.75 quarterly for professional portfolio management. See the chart below for the fee schedule. Managed Account Service Annual Fees Account Balance Annual Fee Less than $100, % Next $150, % Next $150, % Greater than $400, % Enrolling in Advisory Services To enroll in the Managed Account service, simply check the box on page 1 of the enrollment form. For more information or to enroll online, go to > Account Access. 2 Log in and click on the Advisory Services tab at the top of the page. To speak with a licensed AAG adviser representative, call the SMART Plan Service Center at (877) (option 3). 2 AAG s adviser representatives are available to answer questions and provide information to help you make informed decisions regarding your retirement, Monday through Friday from 9:30 a.m. to 7:00 p.m. ET. R E T I R E T O M O R R O W w w w. m a s s - s m a r t. c o m 1 0

12 1 Diversification of an investment portfolio does not assure a profit and does not protect against loss in declining markets. 2 Access to your SMART Plan Service Center and Web site may be limited or unavailable during periods of peak demand, market volatility, systems upgrades/maintenance or other reasons. Transfer requests made via the Web site or SMART Plan Service Center received on business days prior to close of the New York Stock Exchange (4:00 p.m. Eastern Time or earlier on some holidays or other special circumstances) will be initiated at the close of business the same day the request was received. The actual effective date of your transaction may vary depending on the investment option selected. 3 Rebalancing does not ensure a profit and does not protect against loss in declining markets. 4 Foreign investments involve special risks, including currency fluctuations and political developments. 5 Specialty funds invest in a limited number of companies and are generally non-diversified. As a result, changes in market value of a single issuer could cause greater volatility than with a more diversified fund. 6 Equity securities of companies with relatively small market capitalization may be more volatile than securities of larger, more established companies. 7 A bond fund s yield, share price and total return change daily and are based on changes in interest rates, market conditions, economic and political news and the quality and maturity of its investments. In general, bond prices fall when interest rates rise and vice versa. Core securities, when offered, are offered through GWFS Equities, Inc. Managed account, guidance and advice services are offered by Advised Assets Group, LLC (AAG) and powered by Ibbotson Associates. Both AAG and Ibbotson Associates are federally registered investment advisers. AAG and GWFS Equities, Inc. are wholly owned subsidiaries of Great-West Life & Annuity Insurance Company. Representatives of GWFS Equities, Inc. are not registered investment advisers, and cannot offer financial, legal or tax advice. Please consult with your financial planner, attorney and/or tax adviser as needed. GWFS Equities, Inc., or one or more of its affiliates, may receive a fee from the investment option provider for providing certain recordkeeping, distribution and administrative services. Brokerage services provided by TD AMERITRADE, Division of TD AMERITRADE Inc., member FINRA/SIPC. TD AMERITRADE is a trademark jointly owned by TD AMERITRADE IP Company, Inc. and The Toronto-Dominion Bank. (c)2010 TD AMERITRADE IP Company, Inc. All rights reserved. Used with permission. Additional information can be obtained by calling (866) Funds may impose redemption fees, and/or transfer restrictions, on certain transfers, redemptions or exchanges. Great West Retirement Services refers to products and services provided by Great West Life & Annuity Insurance Company and its subsidiaries and affiliates. AllianceBernstein, Ibbotson Associates, TD AMERITRADE and Great-West Retirement Services are separate and unaffiliated. Great West Retirement Services and Reality Investing are registered service marks of Great West Life & Annuity Insurance Company. All rights reserved. Not intended for use in New York Great West Life & Annuity Insurance Company. Form# CB1096TPI (1/2010) PT#96717