American Funds Models for 401k Accounts 
 

By Risk Tolerance:

• A Model: Income Objective Moderate risk (lower risk model than B thru E investing in primarily bond portfolios, objective is moderate income). Typical investor may have less than 3 yrs until retirement.
  
• B Model: Conservative Growth (a balanced bond income and equity portfolio for those wanting higher growth than straight bonds funds but less risk than Model C thru E). This model is allocated for those that may have 3 to 7 yrs. until retirement.
  
• C Model: Moderate Risk for Growth (a high quality portfolio with lower volatility than D or E). Though growth is the objective, more of the portfolio is in higher quality large cap equities rather than smaller capitalized equity issues. Typical investor may have 7-10 yrs. until retirement.
  
• D Model: Moderately Aggressive Risk for Growth (a portfolio for growth potential with greater volatility or risk due to more equity exposure to smaller capitalized stocks and world equities). Ten + yrs. until retirement or able to emotionally tolerate higher volatility.
  
• E Model: Aggressive Risk for Growth (this model is for those who value growth of principal and can tolerate higher portfolio volatility investing in world wide economies and small to medium size public stocks). Typically, the investor may have more than 15 yrs. until retirement or able to tolerate higher volatility.

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 An investor should carefully consider the fund's risks, charges, expenses and objectives before investing. This and other important information can be found in the prospectus. Please contact your advisor or the fund company directly for a copy of the prospectus which should be read carefully before investing.