1. Risk Management presentation Managing Risk

2. The use of asset allocation does not guarantee returns or insulate you from potential losses. Dollar cost averaging does not assure a profit and does not guarantee against loss in a declining market. This type of strategy involves continuous investment in the security regardless of fluctuating price levels of such securities. Investors should consider their financial ability to continue purchases through periods of low price levels. Investing involves market risk, including possible loss of principal and possible fluctuations in value. The Nationwide Group Retirement Series includes unregistered group fixed and variable annuities and trust programs. The unregistered group fixed and variable annuities are issued by Nationwide Life Insurance Company. Trust programs and trust services are offered by Nationwide Trust Company, FSB, a division of Nationwide Bank. Nationwide Investment Services Corporation, member FINRA. In MI only: Nationwide Investment Svcs. Corporation. Nationwide Mutual Insurance Company and Affiliated Companies, Home Office: Columbus, OH 43215-2220. The Nationwide framemark, Nationwide Financial and On Your Side Interactive Retirement Planner are service marks of Nationwide Mutual Insurance Company. © 2013 Nationwide Financial Services, Inc. All rights reserved. PNM-2472AO.1 (06/13)

3. Risk Management Agenda Budgeting Asset allocation Rebalance your account Dollar cost averaging Investment goals Risk Management

4. 4 What is asset allocation? Spreading your investments across various asset classes Helps keep your account safe from poor performance Also known as diversification Asset allocation

5. Risk Management 5 Risk Versus Reward Asset allocation

6. Risk Management 6 Asset allocation Put it into practice

7. Risk Management 7 Asset allocation Moderately Conservative ConservativeModerateModerately Aggressive Find your investor profile Aggressive

8. Risk Management 8 Rebalance your account Rebalance regularly Source: Boost Your 401(k) Returns with Rebalancing, 401(k) Helpcenter, 02/13.

9. Risk Management 9 Why rebalancing may be a good idea Source: http://money.usnews.com/money/blogs/the-smarter-mutual-fund-investor/2011/03/15/why-rebalancing-your-portfolio-is-important, accessed 02/07/2013 Rebalance your account

10. Risk Management 10 Automatically rebalance to your original allocations Rebalance your account

11. 11 Risk Management Dollar Cost Averaging Regular contributions to your retirement plan Systematic and consistent Dollar cost averaging

12. Risk Management 12 Dollar cost averaging Invest $1,000 per month for a year or one lump sum of $12,000.

13. Risk Management 13 On Your Side Interactive Retirement Planner SM Investment goals

14. Risk Management 14 Managed Accounts Hire a professional to actively manage your account No minimum account balance is necessary You can cancel any time Investment goals

15. Risk Management 15 Points to remember Understand what type of investor you are Properly diversify your account to help reach your individual goals Rebalance regularly to maintain proper asset allocation Dollar Cost Averaging happens automatically with your retirement plan account Set a goal and track it with On Your Side Interactive Retirement Planner Work with a managed account provider if you want additional support Summary

16. 16 Types of Risk