Welcome to your Phillips 66 Savings Plan

Investments in Target Retirement Trusts are subject to the risks of their underlying funds. The year in the trust name refers to the approximate year (the target date) when an investor in the trust would retire and leave the workforce. The trust will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date. The Income Trust has a fixed investment allocation and is designed for investors who are already retired. An investment in a Target Retirement Trust is not guaranteed at any time, including on or after the target date.

Company stock investments

The Plan offers company stock investments that provide you with an opportunity to share in your Company’s financial success. And from your employer’s perspective, an investment in its stock creates a shared commitment.

However, a disproportionately large investment in any single stock puts your retirement savings at increased risk. In general, owning a fund that invests in just one stock is considered riskier than owning a diversified stock mutual fund, which may own hundreds or thousands of stocks. Even if a few of a diversified stock mutual fund’s holdings perform poorly, other stocks in the fund may do better, helping to offset the losses. Diversifying means having different types of investments. It doesn't guarantee you'll make a profit or that you won't lose money. 

Consider owning a diversified mix of investments with no more than 20% of your retirement savings in company stock. When more than 20% of your retirement savings is invested in company stock, the risks of owning an individual stock may outweigh any potential benefits.

Diversification can be an important safeguard in investing. The idea is simple: You avoid putting all your eggs in one basket. Instead, you build your portfolio with different types of assets. When one type of investment is doing poorly, another may be doing well. This may help prevent dramatic swings in your account balance. Keep in mind that you also may diversify your company stock holdings as explained in the Diversification Notice. Diversifying means having different types of investments. It doesn’t guarantee you’ll make a profit or that you won’t lose money.

While there's no one-size-fits-all answer when it comes to diversification, finding the right asset mix doesn't have to be complicated.

Complete Vanguard's Investor Questionnaire for a suggested asset mix.

Playing it safe can leave you short
On the surface, short-term reserves—such as your 401(k) plan's stable value fund—appear to be no-risk options because they seek to maintain a steady value. But many people overlook their hidden risk: inflation.

Over time, inflation can greatly reduce the returns you receive. Here's how: Over the past century, short-term reserves have earned an average annual return of 3.4%. During this time, inflation has eaten up about 2.9% of that return each year. With an annual return of just 05% after inflation, you may not reach your investment goals.*

While an investment with plenty of high returns and zero risk would be ideal, it just doesn't exist. So you should consider choosing something that balances risk and return. Finding the right balance can be challenging: You don't want a volatile investment portfolio that keeps you up at night, but you need to make sure you accumulate enough money to last throughout your retirement. Because your Plan offers a wide range of fund options, you can create a portfolio with just the right combination of risk and potential return to suit your investment style.

As its name suggests, a stable value investment tries to keep its share price constant. But this is not guaranteed, and it’s possible to lose money with an investment like this. Unlike bank savings accounts, this investment is not insured by the U.S. government. It’s also not insured by your employer or Vanguard.

If you need access to your money, there are options.
 

• Loans. You can borrow from your account, subject to terms and conditions. Borrowing from your retirement plan does have long-term consequences, so be sure you understand the impact before you move forward.
  
  
  • Pros and cons of a loan
  • Log in to your account and select Access my money to request a loan.

• In-service withdrawals. You can withdraw from your account balance under certain circumstances. These include verifiable financial hardship, after age 59 ½ withdrawals, after-tax withdrawals as well as company contributon, rollover, and disability withdrawals. To learn more, log in to your account and select Access my money.¹

• Separation from service. If you leave your employer, you can withdraw all or part of your balance. You may have several options for doing so—you’ll receive notification. Remember, if you take money from your Plan, you may need to pay taxes and, if you’re under age 59 ½, potential penalties.¹
  
  
• Upon retirement. When you’re ready to retire, you can take your money as a lump sum or as installments. Or, you can roll it over to an IRA or leave it in the Plan.² Vanguard has resources to help you decide - just call Vanguard at 800-523-1188 for additional support or log in to your account and select Access my money. You also have the option to rollover your Defined Benefit plan account (Pension) to the Phillips 66 Savings Plan at Vanguard.  After informing the Phillips 66 Benefits Center of your intention, call Vanguard or log in to your account and select Manage my money and then Transfer money in to complete the rollover form.  

If you're not actively working and have reached age 73 or older, you generally must begin taking Required minimum distributions (RMDs) from your plan account balance, according to IRS rules.

To name or check your beneficiaries, log in to your account, select Profile at the top of the page, and scroll down to Beneficiary.