1. It’s Time to Start Saving.
[Note to financial professional: Please refer to slide.]
It’s Time to Start Saving.
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 O / 9217s57970
© 2017 American Funds Distributors, Inc.

2. Today we’re going to talk a little about time.
What comes to mind when you think about time?
It’s been described in many different ways. For example:
Time is fleeting.
Time is of the essence.
Time is money.
Time is a great teacher.
Or, time is our most precious resource.
And depending on your choices, time can be a friend … or a foe.
Today we’re going to talk about how to put time on your side.
© 2017 American Funds Distributors, Inc.

3. In life, preparing ahead of time tends to lead to better results
In life, preparing ahead of time tends to lead to better results. Some of you may have found yourselves in situations where you have reflected on how you’ve used your time.
[Build to bring forward the first of three images.] Think about your school days. Have you ever pulled an all-nighter cramming for an exam? How did that go? Contrast that with the feeling of confidence that comes from being thoroughly prepared for an exam.
[Build to bring forward the second of three images.] At the starting line of a race, you’re either prepared or you’re not. Perhaps these runners are reflecting back on their training and hoping they’ve put in the necessary time to run a strong race.
[Build to bring forward the third of three images.] You certainly feel more confident and generally perform better in a job interview if you’ve taken the time to research facts about the company, position and necessary skills.
Early preparation can help you be successful in nearly every walk of life.
© 2017 American Funds Distributors, Inc.

4. For financial professionals only. Not for use with the public.
Yet, in spite of this, we sometimes rationalize putting off doing something.
How many of you have talked yourself into hitting the snooze button another time or two by convincing yourself “I don’t need 15 minutes to get ready today…I can get ready in five…” ?
Later, you may have found yourself in a panic, wondering how you could possibly get ready in five minutes.
But in that moment, the alarm was going off, procrastination felt comfortable.
© 2017 American Funds Distributors, Inc.
For financial professionals only. Not for use with the public. V1
AI-00000 -A

5. “It ain’t so much the things we don’t know that get us in trouble; it’s the things we do know that just ain’t so.” – Artemas Ward, 19th century writer
Other times, we may delay our preparation because we don’t realize what we need to do.
Ever hear this quote? [Note to financial professional: Read quote on slide.]
When it comes to saving for retirement, most people know it’s important. Yet, there are common misconceptions that prevent some of us from taking action. So how do we bridge the gap between knowing what we should do and actually doing it?
Sometimes all it takes to get started is to get past a few of these common mental hurdles that could be slowing us down. We’re going to talk about four of them today.
© 2017 American Funds Distributors, Inc.

6. “I can’t afford to save for retirement — at least not enough to
make a difference.”
How many of you have more money than you know what to do with? If so, please see me after the presentation!
In actuality, none of us do, right? We’re all working within the constraints of our income and budget.
And with so many current expenses and bills to keep up with, we sometimes look at saving for retirement as just one more thing we need to do and think “It’s more than I can handle, so why even try?”
© 2017 American Funds Distributors, Inc.

7. You may be able to afford more than you think
You may be able to afford more than you think. And even small amounts invested regularly can add up.
But as cliché as it sounds, every penny counts.
The truth is, we often have a tendency to spend what we make and not know where the money goes. Have you ever received a raise only to increase your spending by the same amount soon afterward?
Chances are, you could take a close look at your spending habits and find $100 a month or more to save.
Start with whatever you can afford today — no matter how small — and look for opportunities to increase it down the road.
[Note to financial professional: Refer to table on slide.]
As you can see in this table, by putting time on your side and starting early, regular investing can make a big difference in your monthly withdrawals at retirement. Every little bit adds up.
Monthly Contributions Over 40 Years
Monthly Withdrawals at Retirement
$ 100
$1,171
200
2,343
300
3,514
Assumes an 8% average annual return compounded monthly and an annual withdrawal rate of 4% after the accumulation period indicated. Additional information about hypothetical examples disclosed later in presentation.
© 2017 American Funds Distributors, Inc.

8. retirement myself, I can always live off Social Security.”
“If I don’t save for
retirement myself, I can always live
off Social Security.”
Many folks rationalize not saving for retirement because they assume that they’ll be able to live off Social Security.
© 2017 American Funds Distributors, Inc. V1
AI-00000 -A

9. Average worker’s income after retiring:
Social Security Benefits May Be Less Than You Anticipate.
Average worker’s income after retiring:
In reality, the nation’s Social Security program is currently facing a number of challenges relating to its long-term sustainability.
At best, Social Security was designed as a supplemental source of income. [Note to financial professional: Read chart on slide.]
Wouldn’t it be better to have the peace of mind that comes from knowing you’re actively saving for your future? By taking the initiative yourself, you’re improving your retirement outlook.
40% Social Security
The rest is up to you.
Source: Social Security Administration, 2016.
© 2017 American Funds Distributors, Inc. V1
AI-00000 -A

10. “Getting started in a retirement plan sounds like a difficult and
complex process.”
Some people shy away from starting to save for retirement because it just seems too complicated. Some of you may have felt this way at one time or another.
© 2017 American Funds Distributors, Inc.

11. Actually, It’s Never Been Easier to Begin.
Enroll in two steps:
Decide how much to save per paycheck.
Choose your investments.
Did you know that enrolling in your retirement plan really just involves two easy steps?
Designate an amount to be withheld from your paycheck.
Select from the plan’s investment options.
[Note to financial professional: If the plan offers the American Funds Target Date Retirement Series, read the following point.] If you’re looking for an easy way to build an effective retirement portfolio, you may want to consider investing in a target date fund. Your plan offers the American Funds Target Date Retirement Series,® which allows you to choose a single fund that aligns with a specific target date, or the year you’re assumed to retire and begin taking withdrawals. This fund contains a diversified mix of investments that is actively managed by investment professionals, who move it from a growth-oriented focus to a more income-oriented focus over time. Not only is the fund managed to the projected retirement date, but it is actively managed an additional 30 years beyond retirement. Of course, even though the target date funds are managed for investors on a projected retirement date time frame, the funds’ allocation strategy does not guarantee that investors’ retirement goals will be met.
You also have a number of resources you can use:
As the plan’s financial professional, I can help you better understand your investment options.
Your employer can help answer many questions about plan rules and features.
And, at americanfundsretirement.com, there are also helpful interactive resources that you can access along the way, such as retirement planning calculators that can help you determine how much to save each month.
© 2017 American Funds Distributors, Inc.

12. “I’m thinking of putting off my retirement saving for now, but I’ll
catch up later.”
Procrastination. Many people justify procrastinating by telling themselves they’ll catch up later in life.
But as the poet Edward Young once said, “Procrastination is the thief of time.”
© 2017 American Funds Distributors, Inc. V1
AI-00000 -A

13. Waiting to Begin Could Cost You.
The best way you can put time on your side is to start saving now. This is true because of the principle of compounding.
Compounding is what happens when the earnings on your investments, or dividends and capital gains, are reinvested and produce even more earnings.
[Note to financial professional: Read this bullet point only if the plan offers a match.] If you delay starting, not only do you lose out on years of compounding, but you also may be missing out on employer-matching contributions. [Note to financial professional: Explain to employees the plan’s matching formula.] Not taking advantage of this is like turning down free money from your employer – all you have to do in order to receive the match is begin contributing.
And because of this, catching up isn’t easy. [Note to financial professional: Refer to graphic on slide.] As you can see in this graph, the person on the right delayed saving for retirement for 10 years and tried to catch up by saving twice as much per month as the person on the left. But she never caught up.
An early start puts time on your side and lets your investments begin compounding for you sooner.
Start Now
Catch Up Later
Assumes an 8% average annual return compounded monthly and an annual withdrawal rate of 4% after the accumulation period indicated. Additional information about hypothetical examples disclosed later in presentation.
© 2017 American Funds Distributors, Inc. V1
AI-00000 -A

14. time is now.” – Chinese proverb
“The best time to plant
a tree was 20 years
ago. The next best
time is now.” – Chinese proverb
Once you’re past these mental hurdles, it’s time to take action.
[Note to financial professional: Read quote on slide.]
© 2017 American Funds Distributors, Inc.

15. Put time on your side — enroll today.
Put time on your side. Enroll now and you will thank yourself down the road.
[Note to financial professional: Explain what employees need to do to enroll in the plan.]
Put time on your side —
enroll today.
© 2017 American Funds Distributors, Inc.

16. 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.

17. 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 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 will fluctuate with market conditions, 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.

18. [Note to financial professional: Thank employees for attending and let them know how to get in touch with you if they need further assistance.]
RPGEPO O / 9217s57970
© 2017 American Funds Distributors, Inc.