1. Decide How Much to Invest for Retirement.
[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.
Decide How Much to Invest for Retirement.
RPGEPO O s60542
© 2017 American Funds Distributors, Inc.

2. Whether you’re shopping for a flat-screen TV, buying a new car or planning for next summer’s vacation, you’ll probably end up asking yourself a key question: “How much does it cost?”
Considering costs is important because it helps us budget and plan for the future. For example, if you know that a week at that fancy beachside resort is going to cost $2,000, then you can set a weekly or monthly goal and save up the money to make sure you have enough once the summer rolls around.
© American Funds Distributors, Inc.

3. retirement cost? How much will
But, unfortunately, many of us don’t try to figure out how much money we need when it comes to planning for retirement. Have you ever stopped to ask yourself this question? [Note to financial professional: Read slide.]
If you’re currently investing in your employer’s retirement plan, then you recognize the value of putting money aside for your future — that’s a great start.
But are you investing enough? Do you know how much you’ll need?
Today, I’d like to talk with you about the value of being a little more precise in setting your retirement goals. We’ll talk about how to assess where you are today, consider your future needs in retirement and then set a specific investment goal to help you get there.
© American Funds Distributors, Inc.

4. Running the Numbers
Fewer than half of all investors have tried to calculate how much they’ll need in retirement.
If you haven’t yet calculated your future retirement needs, you’re not alone. In fact, a recent survey found that fewer than half of all investors have tried to calculate how much money they’ll need in retirement.
Source: 2016 Retirement Confidence Survey, Employee Benefit Research Institute and Mathew Greenwald & Associates.
© American Funds Distributors, Inc.

5. Running the Numbers
Fewer than half of all investors have tried to calculate how much they’ll need in retirement.
Those who have run the numbers tend to be more confident about their retirement prospects.
However, those who have taken the time to calculate how much money they may need to retire are considerably more confident about their retirement prospects.
Source: 2016 Retirement Confidence Survey, Employee Benefit Research Institute and Mathew Greenwald & Associates.
© American Funds Distributors, Inc.

6. 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.
If you haven’t taken the time to do a detailed calculation, you can take a step in the right direction by following some general guidelines for retirement saving.
For example, … [Note to financial professional: Read slide.]
This can be a good starting point as you begin saving for retirement.
Now some of you may be thinking: What about Social Security? Won’t that be enough to cover my expenses?
You may be surprised to hear that the average wage earner can generally expect Social Security to cover up to about 40% of what they’ll need in retirement. That means you’ll be responsible for most of the bill. And that’s why it’s important to spend a little time now to figure out approximately how much you’ll need to invest on your own for retirement.
© American Funds Distributors, Inc.

7. Everyone’s Retirement Needs Are Different
The problem with "general advice," however, is just that — it’s general. It’s not personalized to your individual needs or the retirement that you’re preparing for. Everyone has different ideas of the lifestyle they hope to enjoy later in life.
For instance, some people look forward to a retirement filled with travel and sightseeing. [Note to financial professional: Refer to image on left-hand side of the slide.]
Others plan to embark on a second career or work part time doing something they enjoy. [Note to financial professional: Refer to image on right-hand side of slide.]
There really isn’t a right or wrong answer. It’s up to you – what would you like your retirement to look like? The answer will impact how much you need to invest.
© American Funds Distributors, Inc.

8. Let me tell you a story about one such person that illustrates this.
So, when setting your goals, you’ll want to be as precise as possible. The principle of precise goal-setting is one that is taught by the most accomplished individuals in nearly every walk of life.
Let me tell you a story about one such person that illustrates this.
If any of you are sports enthusiasts, you may be familiar with the name Ben Hogan — widely regarded as one of the greatest golfers of all time. A famous story is told of Hogan playing an exhibition round in Los Angeles. After asking his caddie for a target, the caddie gestured toward a cluster of four palm trees on the horizon planted only a few feet apart and replied, “Aim for the palm trees, Mr. Hogan.”
Mr. Hogan’s response reveals how precise he is when setting a target. He responded, “Which palm tree?”
You, too, can benefit from being as precise as possible when setting goals – including those for retirement saving. One tool that can help you do this is an online retirement calculator.
© American Funds Distributors, Inc.

9. Assess Where You Are Today
Collect the data you’ll need for the online retirement calculator
Gather statements for all financial accounts
Confirm the amount you’re currently contributing to each account per year
Verify your current annual salary
Decide at what age you hope to retire
Using an online calculator can make it easier to put a price tag on the retirement you envision.
But before you get started, there’s some information you’ll want to have on hand.
[Note to financial professional: Refer to slide.]
First, collect your financial statements. Think about:
Your current account balance in your employer’s retirement plan
Any balances you may have in previous employers’ plans
IRAs
Savings accounts
Other investments you have outside a retirement plan or IRA
Take a look at your statements and verify how much you’re currently contributing to each account per year. If you don’t have an annual figure handy, you could take the amount you save each month and multiply it by 12.
Make note of your current annual salary, as you will be asked to input it when you get online.
Spend a moment thinking about the age at which you hope to retire. Remember that the age at which you begin drawing from Social Security can impact the amount of your benefits. Reduced Social Security benefits are available at age 62. Full benefits begin at age 65 if you were born before Increased benefits apply if you wait until age 70 before starting to withdraw. This is but one of many factors that could influence when you choose to retire.
And finally, as you’re reflecting on your current situation, be sure to consider your debt. This isn’t something you’ll have to input online, but part of your strategy should be to consider paying off or reducing your credit card and other debt so you’ll have more money that you can put toward retirement.
© American Funds Distributors, Inc.

10. Consider Your Future Retirement Needs
What type of lifestyle do you hope to enjoy?
What will your living situation be?
What other costs, such as medical care, do you need to bear in mind?
Now that you’ve collected information about your current financial situation, you’ll want to spend a moment thinking about your future.
Many experts suggest that replacing 80% of your current income may be sufficient in retirement — but everyone’s needs and desires in retirement are different. Also, keep in mind that inflation may cause you to spend more on everyday purchases in the future than you do today, which could cause you to need more income than you might expect.
As you think about your retirement, here are a few questions you might consider … [Note to financial professional: Refer to slide.]
What type of lifestyle do you hope to enjoy? Think about how that might impact the amount you’ll need to save.
What will your living situation be? Will you still have to pay a mortgage or rent? Will you stay where you are or move to a different area that is closer to family or less expensive?
What other costs do you need to bear in mind? Medical care is a good example of one such cost. The cost of health care is rising and lifespans are increasing.
© American Funds Distributors, Inc.

11. Enter Your Inputs Online
Using an online retirement calculator
After you have completed this prep work, you can jump online and use the Retirement Planning Calculator, available at americanfundsretirement.com.
For best results, use the “Detailed analysis” option, which will usually take less than 15 minutes to complete.
The calculator will take you through steps covering:
Your age and financial background
Estimates for the future
Investment summary
Projected results
Since you’ve already done your prep work, you will just be inputting information that you’ve already gathered.
© American Funds Distributors, Inc.

12. Review Your Projection and Set Goals
Using an online retirement calculator
After entering all of the pertinent information, the calculator will give you a retirement investment projection based on your current habits.
When you get your projection, you can assess whether you’re on track or need to make adjustments to improve your outlook.
If you’re projected to fall short of your anticipated retirement needs, experiment with different contribution amounts. Take a look at the results when you increase the amount you're able to hypothetically invest each pay period.
By editing the inputs and viewing the projected results, you can then set short-term investment goals. Figure out how much you need to invest each year, and then each month. Setting these smaller goals can make it easier to pursue your long-term retirement goal.
Using the online calculator can be a great way to see if you're on track to meet your retirement goals.
© American Funds Distributors, Inc.

13. Move forward with confidence.
I believe that going through this process will be time well spent for you. It may take you a few minutes – but it’s definitely worth it to find out how much you may need to invest each month and year to retire.
Revisit the calculator periodically to see if your projection has changed. As you begin meeting some of your monthly and yearly goals, you may very well find that your long-term retirement projection is beginning to improve.
Remember, you don’t have to rely on the calculator alone — I’m here to help as well. Feel free to reach out to me whenever you could use some help preparing for your retirement.
By setting specific goals, you’re being more intentional as you invest. You’ll have a better idea of what it will take to retire in the way that you’d like and be able to move forward more confidently. Spend a few minutes today and set specific, calculated goals for your future — you’ll be glad you did.
© American Funds Distributors, Inc.

14. 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.

15. 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.
[Note to financial professional: Refer to slide. Give your audience time to read important disclosure.]
© American Funds Distributors, Inc.

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