The author of this book is employed by Pacific Investment Management Company, LLC (PIMCO) at time of publication. The views contained herein are the author’s but not necessarily those of PIMCO. Such opinions are subject to change without notice. This publication has been distributed for educational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy, or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed.

This publication contains a general discussion of defined contribution plans and is intended for plan sponsors of such plans. The analysis contained herein does not take into consideration any particular investor’s or plan’s financial circumstance, objectives, or risk tolerance. Investments discussed may not be suitable for all investors or plans.

This book may contain hypothetical simulated data and is provided for illustrative purposes only. Hypothetical and simulated examples have many inherent limitations and are generally prepared with the benefit of hindsight. There are frequently sharp differences between simulated results and actual results. There are numerous factors related to the markets in general or the implementation of any specific investment strategy that cannot be fully accounted for in the preparation of simulated results and all of which can adversely affect actual results. No guarantee is being made that the stated results will be achieved.

Nothing contained herein is intended to constitute accounting, legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. This book includes discussions of financial concepts that are theoretical in nature such as the “risk-free rate” or “risk-free asset”; readers should be aware that all investments carry risk and may lose value. The information contained herein should not be acted upon without obtaining specific accounting, legal, tax, and investment advice from a licensed professional.