1. PNM-0369AO.3 ISAC 2012 Fall Education School INVESTING, SAVING, RETIRING!

2. PNM-0369AO.3 Your Retirement Matters Now. IT’S YOUR RETIREMENT. DEFINE IT. ACT NOW. HERE’S WHY. YOUR MONEY, YOUR CHOICE. INVESTMENT BASICS. DETERMINE YOUR INVESTMENT PERSONALITY. QUESTIONS? Please keep in mind that investing involves market risk, including possible loss of principal, and there is no guarantee that investment objectives will be achieved. Also, assets withdrawn from a qualified plan may be subject to a 10% penalty tax if withdrawn prior to age 59 ½ distribution and all may be subject to income tax.

3. PNM-0369AO.3 Define It. It’s Your Retirement.

4. PNM-0369AO.3 IDENTIFY YOUR RETIREMENT DREAMS.

5. PNM-0369AO.3 Ask the Social Security Administration … Source: Frequently Asked Questions, http:// www.ssa.gov/qa.htm: 2008 WILL SOCIAL SECURITY BE ENOUGH? Q A Should I count on Social Security for all my retirement income? No. Social Security was never meant to be the sole source of income in retirement. It is often said that a comfortable retirement is based on a "three-legged stool" of Social Security, pensions and savings. American workers should be saving for their retirement on a personal basis and through employer- sponsored or other retirement plans.

6. PNM-0369AO.3 EMPLOYER-SPONSORED RETIREMENT PLANS Defined Benefit Plans Defined Contribution Plans Section 457 Plans Roth 457 Options 401(K) Plans – possibly, in some cases How do they work?

7. PNM-0369AO.3 1. Retirement means different things 2. Social Security was not designed to completely fund retirement 3. How your retirement plans work Now you understand …

8. PNM-0369AO.3 Act Now. Here’s Why.

9. PNM-0369AO.3 WHAT ARE YOUR PRIORITIES? YOUR CAREER BEGINSYOU RETIRE Cover living expensesUpgrade your houseTravel Changing jobsGet married Drive the car you deserveExpensive hobbies Pay off college Buy a house Start a family Busy social calendar Save for child’s college Child’s wedding Care for aging parentsFamily vacation

10. PNM-0369AO.3 PUT TIME ON YOUR SIDE JANE Starts at age 30 Stops at age 40 Contributes for 10 years $38.46/week Invested $20,000 8% hypothetical growth rate DON MICHAEL Age 65 Starts at age 40 Stops at age 65 Contributes for 25 years $38.46/week Invested $50,000 8% hypothetical growth rate Age 65 Starts at age 30 Stops at age 65 Contributes for 35 years $38.46/week Invested $70,000 8% hypothetical growth rate Age 65 This illustration is a hypothetical compounding calculation assuming a rate of return of 8%. It is not intended to serve as a projection or prediction of the investment results of any specific investments. Investments are not guaranteed. Depending on the underlying investments, returns may be higher or lower. If fees and expenses had been considered in this illustration, the return would have been less. Interest compounded annually based on weekly contributions. Source: Nationwide Financial, 2002.

11. PNM-0369AO.3 PUT TIME ON YOUR SIDE JANE Starts at age 30 Stops at age 40 Contributes for 10 years $38.46/week Contributed $20,000 8% hypothetical growth rate DON MICHAEL Age 65 $206,401 Starts at age 40 Stops at age 65 Contributes for 25 years $38.46/week Contributed $50,000 8% hypothetical growth rate Age 65 $152,092 Starts at age 30 Stops at age 65 Contributes for 35 years $38.46/week Contributed $70,000 8% hypothetical growth rate Age 65 $358,493 This illustration is a hypothetical compounding calculation assuming a rate of return of 8%. It is not intended to serve as a projection or prediction of the investment results of any specific investments. Investments are not guaranteed. Depending on the underlying investments, returns may be higher or lower. If fees and expenses had been considered in this illustration, the return would have been less. Interest compounded annually based on weekly contributions. Source: Nationwide Financial, 2002.

12. PNM-0369AO.3 INFLATION IS NOT LIKELY TO SLOW DOWN. $0.22 $0.55 $3.55 $11,838 $0.37 $1.11 $6.41 $22,013 1 Postal Rate Commission, www.prc.gov (8/18/06).www.prc.gov 2 U.S. Department of Labor Bureau of Labor Statistics, www.bls.gov (8/21/06).www.bls.gov 3 National Association of Theatre Owners, www.natoonline.org (8/21/06).www.natoonline.org 4 Ward’s Automotive Group and U.S. Department of Labor, Bureau of Labor Statistics, 2006. 6 Assumed inflation rate of 3/5%

13. PNM-0369AO.3 1. Do not let conflicting priorities keep you from contributing to your Employer Plan 2. Put time on your side and don’t wait 3. Inflation is not likely to slow down Now you understand …

14. PNM-0369AO.3 Your Choice. Your Money,

15. PNM-0369AO.3 HOW MUCH SHOULD YOU INVEST? To help you learn how much to invest, check out nationwide.com/rscore. There you’ll find an interactive resource called RetirAbilityCheck SM. This anonymous online experience gives you an easy and fun way to see where you stand in preparing for your retirement. RetirAbilityCheck is for educational purposes only and is not intended as advice. Keep in mind that all investing involves market risk, including the possible loss of principal.

16. PNM-0369AO.3 FINDING MONEY TO INVEST. Possible additional annual investment Spendable annual pay has been reduced by Social Security taxes at an assumed rate of 7.65%. Neither Nationwide ®, nor any of its representatives give legal or tax advice. Make sure you consult your legal or tax advisor for such guidance.

17. PNM-0369AO.3 Investment Basics Please keep in mind that any investment involves risk and there is no assurance that the investment objective of any fund will be achieved

18. PNM-0369AO.3 CASH EQUIVALENTS, BONDS AND STOCKS. StocksBonds Cash

19. PNM-0369AO.3 WHAT IS A MUTUAL FUND? Benefits Professional management Lower cost than individual stocks and bonds Multiple types to build portfolio

20. PNM-0369AO.3 DIVERSIFICATION HELPS, TOO Diversification does not assure a profit and does not guarantee against loss in a declining market. Different investments, different risks Bonds Cash equivalents Stocks Lower risk, lower potential return Higher risk, higher potential return

21. PNM-0369AO.3 1. The three essential types of investments 2. Consider using mutual funds 3. The importance of diversification Now you understand …

22. PNM-0369AO.3 Investment Personality. Determine Your

23. PNM-0369AO.3 DO IT FOR ME. The employer has selected the Registered Investment Adviser providing this service to the plan. Nationwide takes no position as to either the advisability or the necessity of the case of Registered Investment Advisers. It is the responsibility of the plan’s investment fiduciaries to select this service in accordance with the plan’s established investment criteria. The plan fiduciaries are solely responsible for the selection and monitoring of the Registered Investment Adviser. This service is separate and apart from the actual sale of any Nationwide product which may be used to provide the plan’s underlying investments. The fee is in addition to any Asset Management Charges associated with each individual investment option and any applicable recordkeeping fees.

24. PNM-0369AO.3 HELP ME DO IT.

25. PNM-0369AO.3 I’LL DO IT MYSELF.

26. PNM-0369AO.3 Do It For Me Help Me Do It I’ll Do It Myself

27. PNM-0369AO.3 FIND YOUR PROFILE

28. PNM-0369AO.3 Help Me Do It I’ll Do It Myself

29. PNM-0369AO.3 FUND PROFILES Performance Holdings Expenses

30. PNM-0369AO.3 SELF-DIRECTED BROKERAGE Even more investments Restrictions and fees Minimums and maximums

31. PNM-0369AO.3 1. Your investment personality 2. Your investor profile Now you understand …

32. PNM-0369AO.3 Any Questions?