1. Invest With a Long-Term Focus.
[Note to financial professional: Please refer to slide.]
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
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2. In life, what you focus on can make all the difference.
Take a professional baseball player, for example. Standing at the plate, a batter has about seconds to react to a 90-mile-per-hour fastball. Less than half a second! During that time, he needs to determine what type of pitch is being thrown, how fast it is coming and whether or not he should swing. And all the while, a crowd of up to 50,000 people is cheering and causing roars of up to 120 decibels!
How are players ever able to perform such a complex task with so many potential distractions?
© 2017 American Funds Distributors, Inc.

3. The answer is … through selective focus.
A successful hitter learns how to tune out the fan noise, stadium commotion and dugout distractions and focus on the one thing that matters — the pitch. [Build to highlight the pitcher as the batter’s sole area of focus.]
He understands that his only objective at that moment is to hit the ball! None of the commotion matters. By zeroing in on his objective and ignoring other distractions, it is much easier to decipher the speed and location of the pitch and put a good swing on the ball.
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4. Focus can help you, too, as a retirement plan investor.
As you save for retirement, you will see many different kinds of markets.
The short-term-focused world in which we live offers no shortage of commotion and potential distractions from your long-term goals. TV programs and newspaper headlines accentuate the current market trends and can make it feel like they’re here to stay.
In this type of environment, you may sometimes wonder if it would be easier to keep your money out of the market entirely to avoid the ups and downs.
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5. $1,000
invested in the S&P 500, from 1986–2015, generated annual returns ranging from –37% to 38%, but over 30 years it grew to
$19,318
But there’s good news: Investing with a long-term focus is still a powerful and effective way to prepare yourself financially for retirement.
Consider the following example… [Note to financial professional: Read slide.]
During these 30 years, there were times when the market was up and other times when it was down. But you can see the result of remaining focused on the long term and staying invested.
Accumulating enough money to retire takes time. You’re going to see many different types of markets, both good and bad. Will you be able to maintain your focus on your long-term goals during times of market volatility?
Like the baseball player in our example earlier, tuning out the noise and distractions can help you be a successful retirement plan investor.
When the market is volatile, remember your investing time horizon is probably a long-term one and work with a financial professional to determine if changes in market conditions require any adjustments to your retirement plan portfolio.
Returns in this hypothetical example are based on an investment of $1,000 in Standard & Poor’s Composite Index from 1/1/86 to 12/31/15. The index is unmanaged and has no expenses. Investors cannot invest directly in an index. Past results are not predictive of future results.
© 2017 American Funds Distributors, Inc.

6. To maintain your focus on your long-term retirement objectives, you will need to overcome “herd mentality.” [Note to financial professional: Refer to image on slide.]
What is “herd mentality”? It is the tendency to adopt behaviors demonstrated by our peers.
During volatile times, you’ll probably see “the herd” making some knee-jerk reactions and abandoning their retirement investing strategy. Others will avoid investing entirely due to the ups and downs of the market.
But before you think about following the crowd, you should know that investors with this mind-set don’t always get the best results. A recent study conducted by Dalbar reported that during the 20-year period ending 12/31/15, the annualized returns for the average equity investor lagged those of the S&P 500 by more than 3% per year.*
While it’s true that during times of uncertainty it’s often tempting to do what everyone else is doing, there isn’t always safety in numbers. Learning to maintain your long-term focus during these times can be very helpful as you reach for your own retirement goals. Work with a financial professional and base your decisions on more than just what you see others doing. * “22nd Annual Quantitative Analysis of Investor Behavior, 2016,” Dalbar, Inc.
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7. The Power of Staying Invested
Value of hypothetical $1,000 investment in the S&P 500, excluding dividends, from 1/1/06 to 12/31/15.
$1,000 original investment
How many of you have observed friends or family members who have tried to “time” the market to their own advantage? How did they do?
History has shown that trying to “time” the market can actually hurt your results. During downturns, it’s not uncommon for investors who fear further declines to want to move their money out of the market. Unfortunately, these investors sometimes do so at the very worst times, such as near a market low.
This chart shows how difficult it is to time the market. [Note to financial professional: Refer to bar chart.] A hypothetical $1,000 investment in the S&P 500 from 1/1/06 to 12/31/15, excluding dividends, grew to $1,637 when invested for the entire period. But if you missed investing during just the ten best days during that period, you actually would have lost money. By simply staying invested, you would have come out significantly ahead.
The old adage to “buy low and sell high” is easier said than done. Market movements can be difficult to predict, even for the experts. It’s much better to focus on how much you’re regularly saving and how long you remain invested in the market.
Lost
17%
in value
Lost
46%
in value
Lost
63%
in value
Lost 73%
in value
Past results shown exclude dividends. The index is unmanaged and has no expenses. Investors cannot invest directly in an index. Past results are not predictive of future results.
© 2017 American Funds Distributors, Inc.

8. A Better Way to Buy More When Prices Are Low
Dollar cost averaging explained
What if I could tell you there’s a way to ensure that you’re buying more of your investments when prices are lower — without having to predict the future?
Well, it’s true — it can be done through a process called “dollar cost averaging.” This is just a fancy name for the process of investing on a regular basis — like you can through your company’s retirement plan.
[Note to financial professional: Refer to table.] As you can see in this hypothetical example, by investing $50 from every paycheck the investor automatically purchased more shares when prices were low than when they were high. This helped the investor realize an average purchase price that was below the average share price during that same period.
Now, that’s a much more reliable way to “buy low.”
© 2017 American Funds Distributors, Inc.

9. Investing Can Help You Keep Up With Inflation.
Let’s look at another benefit of investing to meet your long-term goals.
How much is gasoline today? Has anyone filled up recently? [Note to financial professional: Give audience a moment to respond.] Did you know that in January 2002 the national average for a gallon of gas was only $1.11? Sounds pretty good today, doesn’t it?
Inflation is a reality. The buying power of a dollar today is less than it was decades ago, and it is probably greater than it will be decades from now. Have you ever considered what some of the things you purchase today will cost years into the future? [Note to financial professional: Refer to slide.]
The perceived security of pulling your money out of the market can be alluring. But without regular earnings, it can be difficult to keep up with inflation and the financial demands of longer life spans.
A solid long-term investing plan can help you keep up with inflation and help prevent your savings from depreciating in value.
Dollar amounts are average family monthly costs according to the 2015 Consumer Expenditure Survey published by the U.S. Bureau of Labor Statistics in August Future cost projections are based on 3% annual inflation for 30 years.
© 2017 American Funds Distributors, Inc.

10. The Value of a Return
What is the true value of the return earned on an investment? Is it possible to save enough for retirement without a return?
Consider this example … [Note to financial professional: Refer to slide.]
Bruce has chosen to avoid the market and is trying to save enough for retirement without the benefit of a return. He plans to save a $1,000/month for 40 years.
Allison is willing to deal with some market volatility in order to earn a return on her savings. She works with an advisor to establish a solid long-term investing strategy and hopes to earn an 8% return over 40 years. Even investing only $250/month — one-fourth of what Bruce hopes to save — the projected earnings put her ahead of Bruce, and by no small margin.
This return is achieved through the compound earnings that long-term investing can provide. It’s hard to accumulate enough savings to retire without earning a return. Investing can help make your retirement goals more achievable.
Assumes a 40-year accumulation period. Retirement withdrawal estimates assume monthly compounding 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. Additional hypothetical information disclosed later in presentation.
© 2017 American Funds Distributors, Inc.

11. As your plan’s financial professional, I’m here to help you develop achievable financial goals and a plan that can help you reach them. I can help you stay focused on your objectives through varying market cycles.
It can be reassuring to have someone with experience on your side to talk through your concerns and validate any decisions that you’re considering.
I encourage you to give me a call. We can work together on a personalized long-term investing plan, taking into account your risk tolerance, investing time horizon and retirement income needs.
Working with a financial professional can help you keep your long-term focus.
© 2017 American Funds Distributors, Inc.

12. “The single greatest edge an investor can have is a long-term orientation.”
– Seth Klarman, Author/renowned investor
As you save for retirement, you will see ups and downs, but remember your long-term objectives. [Note to financial professional: Read quote on slide.]
I encourage you to give yourself this edge – think long term and work consistently toward your goals. Investing with a long-term focus can be a great way to pursue them.
© 2017 American Funds Distributors, Inc.

13. 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 55 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 55 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.
© 2017 American Funds Distributors, Inc.

14. 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.
Retirement withdrawal estimates assume an 8% average annual return compounded monthly and an annual withdrawal rate of 4% after the accumulation period indicated. 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.]
© 2017 American Funds Distributors, Inc.

15. Standard & Poor’s 500 Composite Index is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Capital Group. Copyright © 2017 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC.
[Note to financial professional: Refer to slide. Give your audience time to read important disclosure.]
© 2017 American Funds Distributors, Inc.

16. For financial professionals only. Not for use with the public.
[Note to financial professionals: Thank employees for attending and let them know how to get in touch with you if they need further assistance.]
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For financial professionals only. Not for use with the public.