Glide Path Designed to Protect and Continue Building Wealth | Capital Group

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Defined Contribution Insights

July 2017

A Glide Path Designed to Protect and Continue Building Wealth

How do American Funds retirement target date funds help address an investor’s increasing need to build wealth and protect against down markets through retirement? Since the 2008 financial crisis, investor sensitivity to volatility has increased. In this video, equity portfolio manager Jody Jonsson explains how the funds seek to address these issues.

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Key Topics:

  • Retirees are unprepared for the distribution phase.
  • Investors need to protect and build wealth during retirement, making meaningful equity exposure important.
  • In retirement, the series seeks to lower the equity risk profile by emphasizing historically less-volatile dividend payers.
  • The series benefits from flexibility in the underlying funds that can shift between equities and bonds based on changing market conditions.

View video


Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses or the collective investment trust's Characteristics statement, which can be obtained from a financial professional, Capital or your relationship manager, and should be read carefully before investing. 

Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and not to be comprehensive or to provide advice.