Investing basics for beginners_ Investing 101

1. We build ALife After Debt Technologyto knock out debtand build credit. June 2022.

2. Investing basics for beginners: Investing 101 Why is investing important? • Investing is an important part of financial well-being. • It’s how most people plan and pay for major milestones - by investing with specific goals in mind, like education expenses, buying a home, transitioning to retirement and other big achievements and transitions. • Investing works, making big-ticket expenses possible, because the money you’ve invested grows and earns more than funds kept in most savings accounts. 1 2 Bright Journey and Products 3

3. What is a portfolio? • Investments are typically bundled together in what’s called a “portfolio.” • That’s a fancy Wall Street metaphor for the investments you've chosen, as if you kept all your investments in a notebook or portfolio folder. • You’ll review the investments in your portfolio both individually and collectively, to make sure each one is working as expected and together they’re performing to meet your goals, growing at their expected pace. 1 2 3

4. What is a mutual fund? • The most common start point for beginner investors is a mutual fund. • A mutual fund is a portfolio of investments that pools your money with other investors to purchase a selection of stocks, bonds and other securities. • Among investment options, mutual funds are the most widely used. • Mutual funds are ideal if you're investing for a retirement plan, because they're built to minimize fluctuations in earnings and grow more over the long term. • A common type of mutual fund is an index fund, also known as ETFs (or "exchange-traded funds"). 1 2 3 4 5

5. What is risk tolerance? • Risk tolerance is your willingness to endure big swings in the market. • It's your appetite for risk - how much are you willing to potentially lose in order to potentially earn more? • For example, some index funds are riskier than others, requiring a high tolerance. • How much can you afford to lose without it impacting your financial security? • Which means you’re at risk of losingsome or all of the money you’ve invested, depending on how the investment’s value moves. 1 2 3 4 5

6. What is risk tolerance? • There are both upsides and downsides to risk. The more risk you’re willing to take, the more you’re likely to earn more - and the more you could lose, depending on the investment’s performance. • As you start to invest - on your own or with an advisor, or even if you’ve already started - take time to measure your tolerance for risk.

7. What is diversification? • One of the best ways to boost your risk tolerance - and the potential to earn more - is to diversify your investments, keep a balanced mix of potential high-risk high earners and more reliable, low-risk investments. • Asset allocation is how you find the right balance - ensuring your money is distributed between different types of investments with different types of risk. • A simple way to explain it: “don’t put all your eggs in one basket.” • With an investment portfolio, that means ensuring your money is invested in different tools, across different sectors and parts of the economy. 1 2 3 4

8. What are other common investments? • Securities, commodities, futures and annuities are other common investments that are often considered low-risk. • Real estate can be part of your portfolio too - another of the asset classes considered stable. Buying a home can help balance the volatility of your investment choices. 1 2

9. How does Bright do investments? • Professional brokers and self-guided tools like Robinhood and Stash can help keep your portfolio on track. • Bright offers a third way: a new patented system built to deliver highly personalized financial services. • With a Bright Plan, your investments are tailored to you and your goals, and they’re managed with insight powered by data science, a uniquely responsive, high-performance way to invest. • Bright learns about finances and your goals, then builds and manages a portfolio tailored to you. 1 2 3 4

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