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American Funds 2010 Target Date Retirement Fund Vs S& p Target Date 2010 Index
For those in retirement, our 2010 vintage has delivered an average annual excess return of 0.52%.
Scenario philosophy:This simulation approximates the experience of a late-career participant who invested in the Series at its inception in February 2007 before retiring in 2010.
Assumptions:Salary: $100,000 per year initially growing by 3% annually until retirement on January 1, 2010.Initial investment: $800,000 on February 1, 2007.Contribution rate: 10% annual contribution starting February 1, 2007 until retirement on January 1, 2010.Withdrawal rate: 4% withdrawal of $800,000 increasing by 2% per year.
AFTD excess return is calculated as the difference in return between the American Funds 2010 Target Date Retirement Fund and S& P Target Date 2010 Index. Returns are time-weighted . Market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index. There have been periods when the fund has lagged the index.
The American Funds 2010 Target Date Retirement Fund is managed as a through retirement fund. For a comparison to a broader universe, we compare the American Fund to the S& P Target Date 2010 Index which includes target date funds managed both to and through retirement. Over the same period, the S& P Target Date 2010 Through Index had an average annual return of 5.64% and the American Fund had a total excess return of 0.06%. For additional American Fund results compared to its benchmark, .
How We Approach Editorial Content
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investors point of view. We also respect individual opinionsthey represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.
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How We Make Money
We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.
Turn Your Investments Into Automatic Income

Consider the T. Rowe Price Retirement Income 2020 Fund , designed for people in or nearing retirement, who are looking for regular monthly payouts from their investments. In addition to ongoing monthly dividend income, you’ll enjoy the convenience of an all-in-one fund with ready access to your money when needed.
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What Is A Retirement Income Fund
A retirement income fund is a type of balanced fund that aims to generate income from stock dividends and/or bond interest. Most often, they are designed to be the terminal fund choice for people who have invested in a target-date fund.
Theres no single formula for retirement income funds. Included in our list are funds that range from allocating 100% bonds to as much as two-thirds to stocks. Some funds, such as the Wellington fund, could be used to manage a retirees entire investment portfolio. Others, such as the fixed income-focused choices on our list, are best used as component of a larger portfolio.
Typical retirement income funds put around two-thirds of their assets into fixed-income investments, with the balance in stocks. As part of the equity component, they generally offer exposure to non-U.S. assets, as well as Treasury Inflation-Protected Securities to hedge against inflation.
Choosing How And When To Receive Your Retirement Income
You’ve spent a good part of your working life saving for a secure retirement. Managing your savings to provide the income you will need during retirement requires the same kind of planning for the future.
Mutual of America is ready to help with the assistance you need when you are ready to retire and throughout your retirement years. We can help you make the change from receiving a paycheck, to relying on your savings for retirement income.
Mutual of America offers flexibility and a variety of options for withdrawing your money based on your specific needs for retirement income.
Our Participant Account Representatives and Rollover Specialists can help you review the retirement income options available through a Mutual of America:
Replacing the steady stream of income from your paycheck requires managing and coordinating the sources of retirement income available to you, including your savings, and any other sources, such as Social Security and employer-sponsored retirement plans. You’ll have to consider how and when the income will be paid and estimate the amount of monthly income you will need to live on.
You will also have to make choices that can determine whether your retirement income will last through your retirement years, and if you leave a death benefit for your beneficiaries.
With your retirement savings under the contracts shown above, you can:
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Increase Your Monthly Payouts
You can adjust your monthly retirement income stream by adding or removing investment assets.
Get started with a minimum investment of $25,000.
Open an account online or speak to an Investment Specialist to discuss whether this fund is an appropriate choice to meet your income goals.
Find out if this fund is appropriate for you.
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The annual payout for the following calendar year is calculated September 30th of each year. This monthly distribution varies from year to year based on the funds performance and the number of fund shares held in the account.
- The total calendar-year distribution amount is determined by calculating 5% of the funds average net asset value over the trailing five years.
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The fund automatically makes 12 equal monthly dividend payments to investors each calendar year.
Initial Investment | |
---|---|
$3,175.98 | $888,539.90 |
*Assuming Initial Investment on January 1, 2018 remained intact without additions or deductions. Account balance after 13th payment .
T. Rowe Price Retirement Income 2021 Fund annual distribution scenariosInitial Investment | |
---|---|
$3,175.98 | $888,539.90 |
*Assuming Initial Investment on January 1, 2018 remained intact without additions or deductions. Account balance after 13th payment .
Seeking To Build And Preserve Wealth
Our Series adapts to changing participant needs by adjusting both its stock/bond mix and the types of assets held through each stage of life.
Our Series adapts to changing participant needs by adjusting both its stock/bond mix and the types of assets held through each stage of life.
Early career
Seek to grow wealth and manage risk with predominantly growth-oriented equities and a prudent allocation to defensive bonds.
American Funds Target Date Retirement Series glide path approximation
Mid-career
Begin to balance growth and income via diversified fixed income and dividend-paying equities.
American Funds Target Date Retirement Series glide path approximation
In retirement
Seek to preserve wealth and deliver sustainable income with less-volatile dividend-paying equities and higher quality bonds.
American Funds Target Date Retirement Series glide path approximation
The target allocations shown are as December 31, 2021, and are subject to the oversight committees discretion. The investment adviser anticipates assets will be invested within a range that deviates no more than 10% above or below the allocations shown in the prospectus. Underlying funds may be added or removed during the year. Visit capitalgroup.com for current allocations.
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American Funds 2050 Target Date Retirement Fund Vs S& p Target Date 2050 Index
For younger participants focused on long-term growth, our 2050 vintage has delivered an average annual excess return of 1.47%.
Scenario philosophy:This simulation approximates the experience of an early-career participant who invested in the Series at its inception in February 2007 and expects to retire in 2050.
Assumptions:Salary: $40,000 per year initially growing by 3% annually. Contribution rate: 10% annual contribution starting February 1, 2007.
AFTD excess return is calculated as the difference in return between the American Funds 2050 Target Date Retirement Fund and S& P Target Date 2050 Index. Returns are time-weighted . Market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index. There have been periods when the fund has lagged the index.
The American Funds 2050 Target Date Retirement Fund is managed as a through retirement fund. For a comparison to a broader universe, we compare the American Fund to the S& P Target Date 2050 Index which includes target date funds managed both to and through retirement. Over the same period, the S& P Target Date 2050 Through Index had an average annual return of 7.82% and the American Fund had a total excess return of 1.15%. For additional American Fund results compared to its benchmark, .
Our Salaried Representatives Are Available For Personal Assistance
To request personal assistance in reviewing your retirement income options, or if you have questions, please call to speak with a Rollover Specialist, or call your local Mutual of America Regional Office.
You can also get started by estimating your retirement income with our easy-to-use Retirement Income calculator.
You should consider the investment objectives, risks, and charges and expenses of the variable annuity contract and the underlying investment funds carefully before investing. This and other information is contained in the contract prospectus and underlying funds prospectuses and summary prospectuses, which can be obtained by calling or visiting mutualofamerica.com. Read them carefully before investing.
Mutual of America’s Flexible Premium Annuity and Individual Retirement Annuities are individual variable annuity contracts and are suitable for long-term investing, particularly for retirement savings. The value of a variable annuity contract will fluctuate depending on the performance of the Separate Account investment funds you choose. Upon redemption, you could receive more or less than the principal amount invested. A variable annuity contract provides no additional tax-deferred treatment of benefits beyond the treatment provided to any IRA by applicable tax law. You should consider a variable annuity contract’s other features before making a decision.
1You can only contribute to a Roth IRA or Traditional IRA to the extent you have earned income.
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American Funds 2010 Target Date Retirement Fund
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
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, which can be obtained from your plans financial professional or and should be read carefully before investing.
Use of this website is intended for U.S. residents only.American Funds Distributors, Inc., member FINRA.
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Important Information Regarding Withdrawals

For an FPA, withdrawals of the tax-deferred interest and any investment earnings are subject to income tax at your ordinary income tax rate at the time of withdrawal, and if made prior to age 59½, a 10% federal tax penalty, unless another exception applies.
For IRAs , withdrawals are subject to income tax at your ordinary income tax rate at the time of withdrawal, and if made prior to age 59½, a 10% federal tax penalty, unless another exception applies.
For Roth IRAs, withdrawals of your after-tax contributions are not subject to federal income taxes. And, you won’t have to pay federal income taxes on withdrawals of your interest and any investment earnings if taken at least five years after you first contribute to your Roth IRA, and you have attained age 59½ or withdrawals for a qualified first-time home purchase as a result of your death or disability, or up to $5,000 to pay for expenses related to the birth or adoption of your child.
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The Retirement Income Choices Available To You At Mutual Of America Are Explained In More Detail Below
- Receive regular monthly payments as withdrawals from your account value, without having to give up control of your savings
- Continue to manage your account value, asset allocations, withdrawals and the timing of your withdrawals for tax purposes
- Name beneficiaries while you maintain your contract and manage your withdrawals, so you can leave your remaining account value to your beneficiaries
- If you qualify, continue to make contributions to your FPA, Roth IRA or Traditional IRA1 while you are receiving payments from the account, to help generate additional income during your retirement or to leave a death benefit for your beneficiaries.2
Choose the Amount and Withdrawal Method of Your SPO Payments
You can choose when to begin, stop or change the amount of your SPO monthly payments of $100 or more at any time. Please note, however, that withdrawals made prior to age 59½ may be subject to a 10% federal tax penalty unless you meet an exception in the tax code.3
Transparency Is Our Policy Learn How It Impacts Everything We Do
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
Wed like to share more about how we work and what drives our day-to-day business.
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American Funds 2030 Target Date Retirement Fund Vs S& p Target Date 2030 Index
For those in transition, our 2030 vintage has delivered an impressive 1.31% in average annual excess return.
Scenario philosophy:This simulation approximates the experience of a mid-career participant who invested in the Series at its inception in February 2007 and expects to retire in 2030.
Assumptions:Salary: $65,000 per year initially growing by 3% annually.Initial investment: $150,000 on February 1, 2007.Contribution rate: 10% annual contribution starting February 1, 2007.
AFTD excess return is calculated as the difference in return between the American Funds 2030 Target Date Retirement Fund and S& P Target Date 2030 Index. Returns are time-weighted . Market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index. There have been periods when the fund has lagged the index.
The American Funds 2030 Target Date Retirement Fund is managed as a through retirement fund. For a comparison to a broader universe, we compare the American Fund to the S& P Target Date 2030 Index which includes target date funds managed both to and through retirement. Over the same period, the S& P Target Date 2030 Through Index had an average annual return of 7.03% and the American Fund had a total excess return of 0.88%. For additional American Fund results compared to its benchmark, .
Mutual Of America Offers The Following Forms Of Guaranteed Lifetime Income Annuities:
Non-Refund Life Annuity
- You will receive monthly payments for life. All payments cease upon your death.
Full Cash Refund Annuity
- You will receive monthly payments for life.
- If your death occurs before your benefit payments equal your total account value when you began to receive annuity payments, your beneficiary will receive the balance of that value in a single sum.
Life Annuity with Period Certain Annuity
- You will receive monthly payments for life.
- You may choose a 36-, 60-, 120- or 180-month guarantee. If your death occurs before you have received all of the guaranteed monthly payments as selected, the same monthly benefit will continue to your beneficiary until the total number of payments selected have been made.
Joint and Survivor Life Annuity
- You will receive monthly payments for life.
- You may choose a survivorship percentage of 50%, 66%, 75% or 100%. After your death, if your joint annuitant is still alive, your joint annuitant will receive monthly payments for life equal to that elected percentage of your original monthly payment amount. Payments will end upon the death of the last survivor.
Joint and Survivor with Period Certain Annuity
- You will receive monthly payments for life.
- You may choose a survivorship percentage of 50%, 66%, 75% or 100%. After your death, if your joint annuitant is still alive, your joint annuitant will receive monthly payments for life equal to that elected percentage of your original monthly payment amount.
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