The Bespoke Portfolio service is a digital investment advisor built into the recordkeeping system of Slavic401k. This service provides a recommended deferral rate and perpetual investment allocation for the life of the participant.

To determine the recommended deferral rate, the algorithm takes into account the following assumptions. The default income replacement goal is 80% and the default retirement age is 67. The income replacement goal and retirement age can be adjusted by the enrolling participant if desired. The inflation rate applied to the projected salary and social security benefit, which is factored into the income replacement goal, is 3%. The equity portion of the account balance is assumed to earn a return of 6% per year, and the fixed portion is assumed to earn a return of 2.5% per year. The mathematical model used in the algorithm was created by Dr. Dragan Radulovic, Ph.D. Mathematics. There is no guarantee of future returns.

The algorithm utilizes a point system to adjust the equity to fixed income ratio based upon the participant's salary, current retirement savings, answers to a personal risk tolerance test, and retirement date. The program creates a unique portfolio per individual which is rebalanced annually. On or about the participant's birthday, he/she will receive an email asking if any life-changing circumstances have occurred that may alter their risk profile. If so, a link will direct them to the Bespoke website to update their profile so that their account will be reallocated.

The equity to fixed income allocation is displayed with a potential "risk of loss" estimate to ensure that the participant is comfortable with the level of risk recommended by the algorithm. Participants must accept the portfolio and confirm the allocation. There is no human involvement or oversight in the ongoing management of each individual account. Outcomes cannot be guaranteed and there is the inherent risk of investing in the stock and bond markets.

Slavic Mutual Funds Management Corporation, Inc. provides the optional Bespoke service under its contractual role as an ERISA 3(38) Fiduciary and is solely responsible for the investment line-up and allocations.

When you choose to utilize the Bespoke Portfolio Service, an additional annual fee of 0.35% (0.0875% per quarter) will apply. This fee covers the allocation of your account among low-cost, broad-market index funds, providing exposure to both the stock and bond markets. This strategic approach is designed to align with your financial goals.

However, it's important to note that all investments in these markets come with varying levels of risk, tailored to help you meet your objectives. While the program strives for optimal results, it's essential to remember that there are no guarantees of future returns. Your investment may go up or down in value, and past performance is not indicative of future results.

The program will allocate accounts amongst broad market index funds with low expense ratios. There are not guarantees of future returns.