Get to know your plan 2017 - thezone.goodmanmfg.com

1 Welcome We re here to help you succeed Financial health Next best step get to know your plan Goodman 401(k) plan Why saving now is so important your plan features Basic principles of investing your investment options Take action today Today s discussion Let s meet Mike and Marie Why saving now is so important Good news: Not-so-good news: We re living longer We re living longer What will your future look like? Where will you live? What do you want to do? What makes you happy? How will you stay busy? Have you shared your plans? Prepare early for a better retirement Based on 7% annual rate of return.

2 This example is for illustration purposes only and is not intended to represent the return of any specific investment. Estimates are based on the assumptions noted, do not guarantee or imply a projection of actual results, and do not include the effect of taxes or fees. Wells Fargo cannot guarantee results under any savings or investing program, including a regular investment program, and cannot guarantee that you will meet your retirement savings goal. MikeMarieAge started contributing2535 Age stopped contributing3565 Monthly contribution$100$100 Total contribution$12,000$36,000 Years contributed1030$135,044 $121,288 Value at age 65?

3 your retirement plan features Advantages of saving in your plan Features Benefits Payroll withholding Pay yourself first Easy and convenient Pretax contributions Reduces current taxes Earnings grow tax-deferred Company match Additional savings for you! Use your plan to fund your future You may contribute: Up to $18,500 Additional $6,000 if you are 50 or older Limit does not include employer contributions You may be eligible for Saver s Credit Eligibility your contributions Company contributions Vesting Other features of your plan You must have completed three months of service.

4 You may enter the plan on the first day of the payroll period after eligibility is met. The following employees are not eligible to join this plan : Employees covered by a collective bargaining agreement Non-resident aliens Leased employees Independent contractors Eligibility your contributions Company contributions Vesting Other features of your plan Pretax contributions you may contribute 1% to 50% of your salary Catch-up contributions if you are age 50 or over by the end of the calendar year, you may make additional pretax of catch-up contributions of $6,000 in 2018.

5 Rollover contributions are allowed on becoming an employee, and you may roll over from other qualified plans. Eligibility your contributions Company contributions Vesting Other features of your plan Extra contributions for you! Goodman will match $1 for every $1 you contribute, up to 6% of your gross salary, with a maximum match of $3,000. The match is made on an annual basis in late January following the previous plan year. You must be employed on the last day of the plan year to receive matching contributions. Try to contribute at least up to the amount eligible for match.

6 Eligibility your contributions Company contributions Vesting Other features of your plan 100% vested in the money you contribute to the plan and the earnings on that money. You will be 100% vested in your employer contributions after the third complete year of service. Eligibility your contributions Company contributions Vesting Other features of your plan Loans General purpose Residential You may have only one loan outstanding at a time. In-service withdrawals Age 59 Normal Retirement Age Disability Hardship Rollover Distributions Eligibility your contributions Company contributions Vesting Other features of your plan Basic principles of investing Consider how to create your investment mix Asset allocation How you divide your money among stable value/money market investments, bonds.

7 And stocks Diversification How you divide your money within each asset class Asset allocation and diversification do not assure or guarantee better performance and cannot eliminate the risk of investment losses. Bonds How market risk is related to returns Lower risk/ Lower return Higher risk/ Higher return Stable value/ money market Stocks 10% Bonds Average annual total returns 1926 2016 Performance is historical and does not represent future results. Source: 2017 Morningstar. Large stocks are represented by the Ibbotson Large Company Stock Index. Government bonds are represented by the 20-year government bond, Treasury bills by the 30-day Treasury bill, and inflation by the Consumer Price Index.

8 Underlying data is from the Stocks, Bonds, Bills, and Inflation (SBBI ) Yearbook, by Roger G. Ibbotson and Rex Sinquefield, updated annually. An investment cannot be made directly in an index. This is for illustrative purposes only and not indicative of any investment. Return potential How investing styles may impact returns Performance is historical and does not represent future results. Index Source: Zephyr Associates, Inc. The graphs represents the performance of certain portfolios rebalanced monthly. These strategies do not represent the performance of any specific investment.

9 Stocks are represented by the S&P 500 Index, an unmanaged index generally representative of the stock market. Bonds are represented by the Barclays Capital US Aggregate Bond Index, an unmanaged index representative of fixed rate debt issues rated investment grade or higher. Bonds rated investment grade or higher have a relatively lower risk of default. Stable value/money market is represented by the Citigroup 3-Month T-Bill Index, an unmanaged index of 3-month Treasury Bills. It is not possible to invest in an index. The data assumes reinvestment of income and does not account for taxes or transaction costs.

10 $2,848 $5,109 Conservative Growth 20% stocks 48% bonds 32% stable value 60% stocks 24% bonds 16% stable value Return on $1,000 for 25 years (1992 2016) your investment options Investment options Investment approaches Target date funds Other funds You choose based on retirement year Fund provides a diversified mix of investments Fund becomes more conservative as target date approaches You select individual investments You monitor your choices and determine allocation changes if necessary Higher RISK potential RETURN potential Lower Higher Target 2020 Target 2030 Target 2040 Target 2050 T.