We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
Published byDevin Patton
Modified over 2 years ago
© 2010 American Funds Distributors, Inc.AI Figures are past results and are not predictive of results in future periods. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
© American Funds Distributors, Inc.AI The impact of risk on retirement income
New thinking is required © American Funds Distributors, Inc.AI … the tools that have been developed over the last 30 years … that are applicable to the savings side of the life cycle … are not applicable to the dis-savings side of the life cycle…. Moshe Milevsky on William Sharpes research Investment News May 9, 2005
© American Funds Distributors, Inc.AI Some assumptions dont apply Before retirement Cash flow not an issue Known time horizon Risk = standard deviation Cash flow is critical Unknown time horizon Risk = loss of capital During retirement
One spouse lives to age… Source: Milevsky and Abaimova, Applied Risk Management During Retirement, June 19, 2005, Society of Actuaries RP-2000 table. Longevity risk © American Funds Distributors, Inc.AI % Married couples, age 65 Probability
Market declines are inevitable © American Funds Distributors, Inc.AI S&P 500 Index monthly returns, 1973–2009 Results reflect reinvestment of all distributions. 8 since 73 – 25 – 20 – 15 – 10 – 5– % 10/9/07 – 3/9/09 7/17/98 – 8/31/98 7/16/90 – 10/11/90 8/25/87 – 12/4/87 11/28/80 – 8/12/82 9/21/76 – 3/6/78 1/11/73 – 10/3/74 3/24/00 – 10/9/02 Market high to low Avg. annual total return – 55.2%– 19.1%– 19.2%– 32.8%– 20.2%– 13.5%– 44.8%– 47.4%
Declines can erode retirement income © American Funds Distributors, Inc.AI /9/07 3/9/09 $100,000 80,000 60,000 40,000 20,000 0 S&P 500 Index, hypothetical $100,000 initial investment, monthly withdrawals totaling 5% annually, 10/9/07 – 3/9/09 Withdrawals amount to 5% a year of the initial investment. Results reflect reinvestment of all distributions. 12.3% withdrawal rate 5% withdrawal rate $40,738
Hypothetical $100,000 initial investments, monthly withdrawals totaling 5% annually, increasing 4% each year, 8/31/98 – 12/31/09 Figures are past results and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so you may lose money. For current information and month-end results, visit americanfunds.com. Fund results are for Class A shares and reflect deduction of the 3.50% sales charge applicable to a $100,000 investment. © American Funds Distributors, Inc.AI Withdrawals amount to 5% a year of the initial investment. Results reflect reinvestment of all distributions. 8/31/98 Market low 3/24/00 Market high 12/31/09 Present 10/9/02 Market low 10/9/07 Market high The value of professionally managed funds 0 50, , , ,000 $250,000 $181,809 WGI $99,030 ICA $78,843 WMIF $67,429 S&P $117,235 FI $89,351 AMF 3/9/09 Market low Total withdrawals: $69,998
© American Funds Distributors, Inc.AI Sample portfolio Allocation and attributes, as of 12/31/09 10% NPF 20% WMIF 20% AMBAL 50% BFA More than 280 stocks More than 1,240 bonds 23 portfolio counselors with an average of 29 years of industry experience* 0.68% expense ratio *Data reflects industry experience for the portfolio counselors reported in each funds most recent prospectus. Counselor responsibilities may have changed since the date of the prospectus. Expense ratio is a weighted average, based on each funds Class A expense ratio for the most recent fiscal year-end.
Taking income 20 years © American Funds Distributors, Inc.AI Hypothetical $100,000 initial investment, monthly withdrawals totaling 5% annually, increasing 4% each year, 1/1/90 – 12/31/09 *The Index blend consists of 20% S&P 500 Composite Index, 50% Barclays Capital U.S. Aggregate Index, 10% MSCI World Index and 20% blend of 65% S&P 500 Composite Index/35% Barclays Capital U.S. Aggregate Index. Withdrawals amount to 5% a year of the initial investment. Results reflect reinvestment of all distributions. Figures are past results and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Share price and return will vary, so you may lose money. For more current information and month-end results, visit americanfunds.com. Fund results are for Class A shares and reflect deduction of the 3.50% sales charge applicable to a $100,000 investment. Total withdrawn $148,890 Index blend* $153,666 AF portfolio $170,998
American Funds investment results Average annual total returns for periods ended 6/30/10 © American Funds Distributors, Inc.AI American Balanced Fund ® 6.53% 0.16% 4.43% 0.67% American Mutual Fund ® 7.67 – The Bond Fund of America SM Capital World Growth and Income Fund SM Fundamental Investors SM The Investment Company of America ® 3.59 – New Perspective Fund ® Washington Mutual Investors Fund SM 6.62 – Expense 1 year 5 years 10 yearsratio Figures shown are past results and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Share price and return will vary, so investors may lose money. For more current information and month-end results, visit americanfunds.com. Fund results are for Class A shares and reflect deduction of the maximum sales charge (5.75% for equity funds, 3.75% for fixed-income funds). Results are based on an initial $1,000 investment at the beginning of the stated periods. The maximum sales charge for fixed-income funds was 4.75% prior to 1/10/00. Investment results assume all distributions are reinvested and reflect applicable fees and expenses. Expense ratios are as of each funds most recent fiscal year-end. From 9/1/04–12/31/08, the investment adviser to the American Funds and the business manager for Washington Mutual Investors Fund waived a portion of their management fees. Investment results in this presentation reflect the waivers, without which the results would have been lower. Please see the funds most recent shareholder report or prospectus for details.
Investors should carefully consider the investment objectives, risks, charges and expenses of the American Funds. This and other important information is contained in each funds summary prospectus and/or prospectus, which can be obtained from your financial professional and should be read carefully before investing. © American Funds Distributors, Inc.AI-99980
© American Funds Distributors, Inc. Barclays Capital U.S. Aggregate Index represents the U.S. investment-grade fixed-rate bond market. MSCI World Index is a free-float-adjusted market-capitalization-weighted index that measures equity market results of developed markets. The index consists of more than 20 developed market country indexes, including the United States. Standard & Poor's 500 Composite Index is a market-capitalization-weighted index based on the average weighted results of 500 widely held common stocks. Indexes are unmanaged. Their results include reinvested dividends and/or distributions but do not reflect sales charges, commissions or expenses. AI-44440
© American Funds Distributors, Inc. This presentation is authorized for use only when preceded or accompanied by the current summary prospectus and/or prospectus for the fund(s) being offered. If used after September 30, 2010, this presentation must be accompanied by a current American Funds quarterly statistical update. Equity investments are subject to market fluctuations. Investing outside the United States involves additional risks, such as currency fluctuations, periods of illiquidity and price volatility, as more fully described in the prospectus. These risks may be heightened in connection with investments in developing countries. Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds. The return of principal in bond funds, as well as in funds with significant bond holdings, is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks that are associated with the underlying bonds owned by the fund(s). Bond prices and a bond funds share price will generally move in the opposite direction of interest rates. Diversifying investments does not insure against market loss. AI-44440
© 2010 American Funds Distributors, Inc.AI-99997
AI-36904© 2013 American Funds Distributors, Inc. Figures are past results and are not predictive of results in future periods. Investments are not FDIC-insured,
BlackRock Model Portfolios FA Presentation The information shown does not constitute investment advice, does not consider the investment objectives, risk.
Investment products: No bank guarantee I Not FDIC insured I May lose value DWS alternatives suite A compelling option for alternative investing.
1 Maintaining perspective in volatile markets FOR INVESTORS Not FDIC Insured May Lose Value No Bank Guarantee.
Location – Date Staying the Course: Reacting to the current financial climate Insurance products, annuities, and retirement plan funding issued.
Time to Invest in Short-Term Bonds? First Quarter 2010.
Location – Date Staying the Course Reacting to the current financial climate Insurance products, annuities, and retirement plan funding.
Know Your Number Presented by John Forney Source: Created by Raymond James using Ibbotson Presentation Materials © 2010 Morningstar, Inc. All rights reserved.
Investment products: No bank guarantee I Not FDIC insured I May lose value Inflation Understanding one of the greatest risks to retirement savings PRESENTER.
Introducing PowerShares ® Funds By: Allen Teska CFP, CIM, FCSI June 12 th, 2010 For advisor use only. No portion of this communication may be reproduced.
Presenter Name (Edit on Title Master) Title (Edit on Title Master) September XX, 2006 (Edit in View: Header and Footer) ©2006 Lincoln National Corporation.
© 2012 VSA, LP Valid only if used prior to January 1, The information, general principles and conclusions presented in this report are subject to.
©2007 ING North America Insurance Corporation 1 Seminar provided by ING Financial Advisers, LLC (member SIPC). C /07 Presenter Name Presenter.
1 P-ENROLL-PRES-all 1-11 RPS Making your plan for life.
Our Mission: Allianz Life Insurance Company of North America and Allianz Life Insurance Company of New York are the trusted authority in insured retirement.
Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING.
Perspectives on Investing WHAT REALLY MATTERS 1. 3 Some questions we will try to address today returns? I always seem to buy when the market has peaked,
ING1 Asset Allocation Strategies for a Well Balanced Investor C (9/10) X.P-1 Presenter Name Registered Representative Date.
FOR INSTITUTIONAL INVESTOR USE ONLY – NOT FOR USE WITH THE PUBLIC tomorrows scholar ® Start Investing for Tomorrow… Today!
ING1 Asset Allocation Strategies for a Well Balanced Investor C (05/09) Presenter Name Registered Representative Date.
Chapter 19 Valuation and Financial Modeling: A Case Study.
Sunday, June 01, 2014 CONFIDENTIAL © 2013 CollegeChoice 529 Direct Savings Plan Jodi Golden P Phillip Waddles E
Slide 1 of Ed.12/2012 Advanced Strategies to Increase Social Security Income Prudential Annuities, its distributors and representatives.
Chapter 5 Choice Under Uncertainty. Chapter 5Slide 2 Topics to be Discussed Describing Risk Preferences Toward Risk Reducing Risk The Demand for Risky.
Introduction to Investing Preston D. McSwain Senior Vice President Neuberger Berman Private Asset Management (617) smartwomansecurities.
AROUND THE WORLD IN 80 MINUTES A new world order – implications for bond investors BNY Mellon Asset Management For professional advisers only.
The Power of Roth Revolutionized for 2010 This material is not intended to replace the advice of a qualified attorney, tax advisor, investment professional.
Retirement Planning The Reality…. Tens of millions baby boomers closing in on retirement Number of North Americans age 65+ projected to grow 21%
Wedbush Securities Chris Henderson/VP Investments Member NYSE/FINRA/SIPC.
For Financial Professional Use Only: Not For Public Distribution 1 Understanding Leveraged and Inverse Funds Louis Mayberg President, ProFunds Group
© 2016 SlidePlayer.com Inc. All rights reserved.