Improve Your Retirement Outlook. [Note to financial professional: Please refer to slide.] Content contained herein is not intended to serve as impartial investment or fiduciary advice. The content has been developed by Capital Group which receives fees for managing, distributing and/or servicing its investments. Investments are not FDIC- insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. RPGEPO-019-1017O / 9216s60545 © 2017 American Funds Distributors, Inc.

Show the outline of the United States Show the outline of the United States. Label New York City and Los Angeles on map. Show a dotted line representing the flight pattern between NY and LA. How many of you have recently taken a flight somewhere? Today, you can board an airplane in New York and be in Los Angeles in less than six hours. And while it’s become commonplace for us, it’s incredible to think that in those few short hours you’re traveling over 2,000 miles. © American Funds Distributors, Inc.

Show the same map. Show a second dotted line that is one degree off course that arrives 40 miles from LA. We may take this convenience for granted, but a great deal of precision is actually required for us to arrive at the Los Angeles airport. Did you know that if the pilot is off-course by just a single degree, the plane would miss its original destination by more than 40 miles? A single degree! An almost imperceptible shift in the near term could cause a big difference in the eventual outcome. © American Funds Distributors, Inc.

Small Changes Matter Monthly retirement withdrawals after 40 years (Insert visual representation of 1 degree on a compass icon or pie or something.) The fact is, in many areas of life, slight course adjustments made early on can have a big impact on where you end up. Saving for retirement is no different. Making small changes in the amount you’re saving for retirement today can have a big impact on where you end up down the road. [Note to financial professional: Refer to infographic on slide.] Over a period of 40 years, look at the difference that saving $300 per month can make as opposed to saving $200 per month. Taking into account the benefits of compound interest, contributing just $100 more a month toward retirement can really add up. Assumes an 8% average annual return rate compounded monthly and a 4% annual withdrawal rate after the accumulation period. For illustrative purposes only. Actual results may vary. Additional information about hypothetical examples disclosed later in presentation. © American Funds Distributors, Inc.

You Can Bridge the Gap What to consider When thinking about how much you should save, consider your own unique situation. Determine how much you can afford to invest in the plan and consider changing your contributions in small increments each year. But understanding the long-term benefits of saving more today does little for us unless we actually do it! Bridging the “action gap,” or the gap between what we know and what we do is essential to our success. What do we know about saving for retirement? On the last slide, you saw how saving more each month could pay off over the long term. When thinking about how much you should save, consider your own unique situation. Determine how much you can afford to invest in the plan and consider changing your contributions in small increments each year. © American Funds Distributors, Inc.

You Can Bridge the Gap What to consider What we know When thinking about how much you should save, consider your own unique situation. Determine how much you can afford to invest in the plan and consider changing your contributions in small increments each year. The average U.S. employee saves 6.8% of their annual income for retirement. * PSCA’s 59th Annual Survey of Profit Sharing and 401(k) Plans, 2016 But how much are most people setting aside? A recent study conducted by PSCA, an association of employer-sponsored retirement plans, found that the average U.S. employee is saving 6.8% of their annual income for retirement. © American Funds Distributors, Inc.

You Can Bridge the Gap What to consider What we know When thinking about how much you should save, consider your own unique situation. Determine how much you can afford to invest in the plan and consider changing your contributions in small increments each year. The average U.S. employee saves 6.8% of their annual income for retirement. * PSCA’s 59th Annual Survey of Profit Sharing and 401(k) Plans, 2016 And 80% of respondents to a recent survey say they don't feel confident about retirement — primarily because they haven't saved enough. * State Street Global Advisors Retirement Survey, 2015 A retirement survey conducted by State Street Global Advisors in 2015 found that 80% of respondents who don't feel confident about retirement say the top reason is that they haven’t saved enough. Why aren’t we saving as much as we know we should? It could be because, as author Jason Zweig points out in his book Your Money and the Brain, “The pleasure of getting something good today is much greater than the pleasure of getting something good years in the future.” We need to overcome this “action gap” to prepare ourselves for the future. So, how do we find ways to make saving for retirement a priority? © American Funds Distributors, Inc.

You Can Bridge the Gap Current self Future self Many of the actions we take today are influenced by the way we think of our future selves. Here’s an interesting study: Researchers have found that some people think about their future self much differently than they do their current self — even viewing their future self like an entirely different person. Those who view their future self in this way are less likely to do things like floss, eat healthy or save for retirement. Current self Future self © American Funds Distributors, Inc.

You Can Bridge the Gap Current self Future self If you have more of a connection with your future self, you’ll probably be more likely to take action today to benefit yourself in the future. What if you challenged yourself to think a little more about your future needs? Visualize yourself years from now, entering into your golden years. Think of the lifestyle you’d like to have and what steps you can take now to make it a reality. Current self Future self © American Funds Distributors, Inc.

“The ability to delay gratification in the short term in order to enjoy greater rewards in the long term is the indispensable prerequisite for success.” Brian Tracy Motivational speaker Caring for the needs of our future self almost always requires us to delay gratification. [Note to financial professional: Read quote on slide.] When it comes to your retirement savings, are you willing to “delay gratification” by spending less and saving a little more now to provide a better retirement for yourself? What current expense could you eliminate to improve life for your “future self”? This one principle could be fundamental to your success. © American Funds Distributors, Inc.

Finding Ways to Save More for Retirement Pay yourself first. Most of us might admit that we could probably save a little more. When managing your personal finances, let’s talk about a few ways that you can free up more cash for saving: The first thing that you can do is “pay yourself first.” Consider your retirement saving needs as an essential part of your monthly budget along with your other primary living expenses. There are always going to be a lot of competing demands on your budget. Make saving for retirement a priority so it isn’t overlooked. © American Funds Distributors, Inc.

Finding Ways to Save More for Retirement Give yourself a raise. How many of you have experienced getting a pay raise, only to adjust to your new pay level shortly thereafter – spending all that comes in and not knowing where the extra money went? Next time you get a pay increase, you can give a portion of it to yourself in the form of a larger contribution to your retirement account. If you used some or all of this additional income to increase your rate of saving, it could pay off in the long term. © American Funds Distributors, Inc.

Finding Ways to Save More for Retirement Eliminate unnecessary expenses. Belong to a gym you never go to? Pay for premium cable channels you don’t watch? Eliminating these expenses could free up some cash and help you save more. © American Funds Distributors, Inc.

Finding Ways to Save More for Retirement Try to reduce your debt. Debt. It sure can eat up a lot of your salary, can’t it? Paying off credit cards or car loans can reduce your monthly payments and free up more money to save. © American Funds Distributors, Inc.

Finding Ways to Save More for Retirement Create a budget. One of the most basic and time-tested methods of succeeding financially is through budgeting. If you develop a plan for how to allocate your income and then follow it, you can be more effective at planning for the future. Auditing your bills can help you see if you’re paying too much, too. You can talk to your wireless provider, cable company and others to see if you’re on the best plan. Bundling services can also net a discount of up to several hundred dollars a year. Online tools can simplify budgeting and help you see areas where you can cut costs and then consider saving that same amount instead. © American Funds Distributors, Inc.

You Can Save More Through Your Plan’s Tax Benefits Contributing $200/mo Contributing $300/mo Gross Pay Contribution Taxable Income Taxes* Take-Home Pay $3,000/mo 200 2,800 700 2,100 $3,000/mo 300 2,700 675 2,025 If you’re worried that saving more will greatly impact your take-home pay, you may be in for a pleasant surprise, thanks to the benefit of tax-deferred savings. Let’s take a look at an example. [Note to financial professional: Refer to table in slide.] In this example, a $100 increase in monthly contributions would reduce your take-home pay by only $75. This is because when you contribute on a pre-tax basis, your contributions are taken out before taxes are calculated. Of course, taxes will be owed when you withdraw your savings, but you benefit today from a reduction in your current taxable income. [Note to financial professional: Read the following point if the retirement plan offers Roth elective deferrals.] Additionally, your plan offers the option of making Roth after-tax contributions. When you contribute to your plan on a Roth after-tax basis, your current taxable income is not reduced, but you’re able to take generally tax-free withdrawals from your account at retirement. Everyone’s situation is different, so you’ll want to consider your own personal circumstances before determining which contribution method is most appropriate for you. Increasing contributions by $100 reduces today’s take-home pay by $75 Assumes a cumulative tax rate of 25% and that contributions are made on a pretax basis. Withdrawals of pretax contributions are taxable and may include a 10% penalty if taken before age 59½. © American Funds Distributors, Inc.

$5,234/mo Retirement withdrawals $2,097/mo Retirement withdrawals You Can Regularly Increase Your Contributions Set it and forget it Start: 4% of pay Strategy: Save the same percentage of pay until retirement. Set it and increase it Start: 4% of pay Strategy: Increase your contribution percentage by 1% each year until it reaches 12%. Once you’ve applied some of the tips we’ve discussed today, chances are you’ll find ways to increase your current savings level — but that’s not the end. As you advance in your career, you can consider gradually increasing your contributions when you can to improve your chances of having adequate savings for retirement. [Note to financial professional: Refer to slide.] A 1% increase in your savings probably won’t feel like a dramatic change — in fact, you may not even notice it. These subtle changes – like the airplane changing course by a single degree — can have a big impact on where you end up in retirement. Just look at the difference it made in this example. These two individuals started saving the same exact amount, and they earned the same salary throughout their careers. The only difference is that the person on the right increased the percentage she saved by 1% each year until she reached 12%, whereas the other person contributed the same percentage of pay all the way to retirement. The end result: the woman who regularly increased her contributions ended up with more than twice the amount per month in retirement. $5,234/mo Retirement withdrawals $2,097/mo Retirement withdrawals Assumes a starting salary of $43,000, an annual pay increase of 2%, an 8% average annual return rate compounded monthly and an annual withdrawal rate of 4% after a 40-year accumulation period. Additional information about hypothetical examples disclosed later in presentation. © American Funds Distributors, Inc.

Calculate Your Success Trying to calculate the amount that you should save is a lot better than just guessing. If you want help planning for retirement, there are some great resources online. For example, you can access this retirement planning calculator through your plan’s participant website, which will help you assess whether or not you’re on track to meet your retirement goals. Feel free to contact me for additional help or if you’d like assistance reviewing your overall financial picture. © American Funds Distributors, Inc.

“You cannot change your destination overnight, but you can change your direction overnight.” Jim Rohn Business author/speaker [Note to financial professional: Read quote.] You can resolve now to improve your retirement outlook. Consider finding ways to save more — even if it doesn’t seem like much. The choices you make today can dramatically affect your long-term outcome! © American Funds Distributors, Inc.

American Funds Is a Key Provider for Your Retirement Plan Since 1931, American Funds has invested with a long-term focus and attention to risk. Nearly half of the 56 million investor accounts in the American Funds are retirement accounts. Your employer has selected a key provider for your retirement plan — American Funds from Capital Group. There are 56 million investor accounts in the American Funds, and nearly half of those are retirement accounts. Since 1931, American Funds has invested with a long-term focus and attention to risk — both are key to effective retirement planning. © American Funds Distributors, Inc.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing. All hypothetical examples assume an 8% average annual return compounded monthly and a 4% annual withdrawal rate after the accumulation period. These are point-in-time views and as such do not take into account any growth or loss during retirement. Without investment growth/loss during retirement, a 4% annual withdrawal rate would deplete retirement savings in 25 years. Examples are for illustrative purposes only and do not reflect the results of any particular investment, which may differ, or taxes that may be owed on tax-deferred contributions, including the 10% penalty for withdrawals taken before age 59½. Regular investing does not ensure a profit or protect against loss in a declining market. [Note to financial professional: Refer to slide. Give your audience time to read important disclosure.] © American Funds Distributors, Inc.

[Note to financial professional: Thank audience for attending and let them know how to get in touch with you if they need further assistance.] © 2017 American Funds Distributors, Inc.