Don’t Major in the Minors!

[Pages:9]Don't Major in the Minors!

What are the Majors?

1. Budgeting: a. Budgeting doesn't have to be complex; focus on cash in vs. cash out. b. Save first and spend the balance. c. Budgeting apps i. Acorns () ii. Mint () iii. Dave Ramsey's EveryDollar ()

2. Time and Compound Interest: a. 1 penny that doubles for 30 days vs. $1 million? i. Penny will grow to over $5.3 million ii. The penny does not surpass $1 million till day 28; be patient when it comes to compounding. b. The Rule of 72 i. A one-time Roth IRA contribution of $5,000 growing at 7% annually will double every 10 years, so over 40 years it grows to $80,000. c. Stocks have outpaced the bonds, treasury securities, and inflation over the past 65 years.

3. Debt: a. Cow Loan i. West Point juniors are given a loan of roughly $35,000, payable over the five years of their active duty. ii. Many elect to use the $35,000 to buy a new car. iii. Ben; however, made a very mature decision to invest $32,000. iv. Using the Rule of 72, and 7% annual return, that investment will grow to over $500,000 in 40 year (his age 62). v. If Ben spent on a new Camaro, the ultimate cost would be over $500,000. b. Never use debt to purchase a consumable, i.e. car or toothpaste c. Never carry a credit card balance.

4. What are the Minors? a. Should I buy stocks, mutual funds, or exchange traded funds? b. What fund company is the best? c. Should I actively trade or buy-and-hold?

Securities and Investment Advice Offered Through Investment Planners, Inc. (Member FINRA/SIPC) And IPI Wealth Management, Inc., respectively, 226 W. Eldorado St., Decatur, IL 62522

2/26/16

Benefit of saving early

16

Growth of savings accounts

$1,200,000 $1,000,000

JljXe`em\jkj,#''' XeelXccpY\kn\\ek_\ X^\jf]),Xe[*,

@ekfkXc#j_\`em\jkj ,'#'''

9`cc`em\jkj,#''' XeelXccpY\kn\\ek_\ X^\jf]*,Xe[-,

@ekfkXc#_\`em\jkj (,'#'''

:_i`j`em\jkj,#''' XeelXccpY\kn\\ek_\ X^\jf]),Xe[-,

@ekfkXc#_\`em\jkj )''#'''

$800,000

(#'-/#'+/

SAVING FUNDAMENTALS

Harnessing the power of compounding can greatly impact the amount of savings over the long term.

Saving

$600,000

,-)#-/*

$400,000 $200,000

,',#*-,

$0

25

30

35

40

45

50

55

60

65

Age

The above example is for illustrative purposes only and not indicative of any investment. Account value in this example assumes a 7% annual return. Source: J.P. Morgan Asset Management. 16 Compounding refers to the process of earning return on principal plus the return that was earned earlier.

Major asset classes vs. inflation

34

Growth of one dollar 1950 ? 2014

$10,000

$1,000

Small Cap Stocks $4,384

Large Cap Stocks $1,101

RISK AVERSE

Cash may not be an effective long-term solution.

$100 $10

Bonds $50

Treasury Bills $16

Inflation $10

Investing

$1

1950

1960

1970

1980

1990

2000

2010

Source: Morningstar, Inc., Financial Communications ? 2015. All rights reserved. Used with permission. Past performance is no guarantee of future results. Hypothetical value of $1 invested at the beginning of 1950. Assumes reinvestment of income and no transaction costs or taxes. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Small-cap stocks in this example are represented by the Ibbotson? Small Company Stock Index. Large-cap stocks are represented by the Standard & Poor's 90? index from 1950 through February 1957 and the S&P 500 index thereafter, which is an unmanaged group of securities and considered to be representative of the U.S. stock market in general. Government bonds are represented by the 20-year U.S. government bond, Treasury bills by the 30-day U.S. Treasury bill, and inflation by the Consumer Price Index. Underlying data is from the Stocks, Bonds, Bills, and Inflation? (SBBI?) Yearbook, by Roger G. Ibbotson and Rex Sinquefield, updated annually. An investment cannot be made directly in an index. Government Bonds and Treasury Bills are guaranteed by the full faith and credit of the United States government as to the timely payment of principal and interest, while stocks are not guaranteed and have been more volatile than the other asset classes. Small-capitalization stocks typically carry more risk than stock funds investing in well-established "blue-chip" companies since smaller companies generally have a higher risk of failure. Historically, 34 smaller companies' stock has experienced a greater degree of market volatility than the average stock.

A Hypothetical Illustration for

Jeff Secord Business History.20160218

PREPARED BY Jeffrey R. Secord Investment Planners, Inc. 213 W. Jefferson Street Bloomington, IL 61701 Phone: 309-585-0909 Email: jeff.secord@investment-

This report is not complete unless all pages, as noted below, are included. Please read the information in the 'Important Disclosures' found at the beginning of this report. Investments are not FDIC - insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

? 2016 Thomson Reuters

February 19, 2016

Page 1 of 6

Hypothetical Illustration

Important Disclosures

Jeff Secord Business History.20160218

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 prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. For more current information and month-end results, visit .

Regular investing does not ensure a profit or protect against loss. Investors should consider their willingness to keep investing when share prices are declining. Indexes are unmanaged and, therefore, have no expenses. Results for the Lipper indexes do not reflect sales charges. There have been periods when the fund has lagged the index. While it is not possible to invest directly in an index, you can invest in an index fund.

This illustration must be preceded or accompanied by the fund's current summary prospectus or prospectus, which details charges, expenses, investment objectives and operating policies. The American Funds are distributed by American Funds Distributors, Inc.

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The investment advisor for the Target Date Retirement Series is currently waiving its management fee of 0.10%. After December 31, 2015, the advisor may modify or terminate the waiver, but only with fund board approval. From September 1, 2004, through December 31, 2008, the investment advisor to the American Funds and the business manager for The Tax-Exempt Fund of Maryland, The Tax-Exempt Fund of Virginia and Washington Mutual Investors Fund waived a portion of their management fees. The investment advisor has also reimbursed expenses for some funds and share classes. Investment results shown reflect the waiver and reimbursements, without which the results would have been lower. The waiver may be adjusted or discontinued by the investment advisor, subject to any limitations in the fund's prospectus. The expense ratios are as of each fund's prospectus available at the time of publication. The Target Date Retirement Series include the weighted average expenses of the underlying funds. Please see the fund's most recent prospectus for details.

Standardized Average Annual Total Returns for Quarter Ended 12/31/2015 Returns for periods of less than one year are not annualized

Inception Max. Initial Sales

Security Name New Perspective Fund A (ANWPX)

Gross Charges and Expenses

Fund Name New Perspective Fund A (ANWPX)

Inception Date

3/13/1973

Max. Initial Sales Charge/CDSC 5.75% Front

1 Year -0.71%

5 Years 7.71%

10 Years 6.87%

Since Inception

12.08%

Sales Charge 5.75%

Max CDSC 1.00%

Max Redem Fee 0.00%

Total Gross Operating Expense 0.75%

The fund does not assess redemption fees. However, shareholders redeeming shares may be subject to the fund's Purchase Blocking Policy as described in the prospectus.

? 2016 Thomson Reuters

Page 2 of 6

Hypothetical Illustration

Jeff Secord Business History.20160218

The illustration included herein does not reflect the effects of taxes in some or all of the investments.

If the results shown on the following pages do not reflect deduction of an initial sales charge (i.e. they are at net asset value), please note that they would have been lower if the sales charge had been deducted.

Class A shares are subject to an up-front maximum sales charge (5.75% for equity and target date funds, 3.75% for most bond funds, and 2.50% for Intermediate Bond Fund of America, Short-Term Bond Fund of America, American Funds Short-Term Tax-Exempt Bond Fund, and Limited Term Tax-Exempt Bond Fund of America). The sales charge declines for accounts and aggregated investments ($25,000 for equity and target date funds, $100,000 for most bond funds, and $500,000 for Intermediate Bond Fund of America, Short Term Bond Fund of America, American Funds Short-Term Tax-Exempt Bond Fund, and Limited Term Tax-Exempt Bond Fund of America). There is no initial sales charge on purchases of $1 million or more. A 1% contingent deferred sales charge (CDSC) may be assessed if a redemption occurs within one year of purchase. Results on the following pages reflect deduction of the CDSC if the investment is $1 million or more and a withdrawal is selected within one year of purchase. NAV for initial investments may apply in other situations. For additional details, please reference the fund's Statutory Prospectus. Certain withdrawals before age 59 1/2 may be subject to income tax and, if applicable, to a 10% federal penalty. For current information and month-end results, visit .

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.

?

The A/529-A share 1, 5, and 10-year return for each fund is based on the MOP value.

?

The "Average annual return on the investment" is based on the initial investment and the breakpoint chosen.

?

Cumulative Volume Discount Reflected Where Applicable in This Illustration.

?

NOTE: Systematic Accumulation Plans cannot assure a profit or protect against loss in declining markets.

? 2016 Thomson Reuters

Page 3 of 6

Hypothetical Illustration

Jeff Secord Business History.20160218

New Perspective Fund A (ANWPX)

Date 03/13/1973

Initial Investment $10,000.00

Initial Sales Charge

5.75%

Net Amount Invested

$9,431

Shares Purchased

2,336.449

$10,000 initial investment on 03/13/1973. Dividends and capital gains are reinvested. The initial investment is subject to a 5.75% sales charge. The effects of income and capital gains taxes are not demonstrated.

Date 12/31/1973 12/31/1974 12/31/1975 12/31/1976 12/31/1977 12/31/1978 12/31/1979 12/31/1980 12/31/1981 12/31/1982 12/31/1983 12/31/1984 12/31/1985 12/31/1986 12/31/1987 12/31/1988 12/31/1989 12/31/1990 12/31/1991 12/31/1992 12/31/1993 12/31/1994 12/31/1995

Investment(s) 10,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Dividend Income 186 431 334 275 310 436 436 838 1,615 1,794 1,166 1,145 1,124 1,312 1,653 2,531 2,515 2,914 2,699 2,157 2,311 2,632 3,818

Total Dividend

Income 186 617 950

1,225 1,535 1,971 2,407 3,246 4,861 6,655 7,820 8,966 10,090 11,402 13,054 15,585 18,100 21,014 23,714 25,871 28,182 30,814 34,632

Capital Gains 0 0 0 230 575 617 55 0 2,444 1,095 2,600 3,114 3,658 7,482 7,872 4,997 8,787 4,189 2,083 541 4,081 9,627 7,398

Shares Held 2,379 2,502 2,579 2,688 2,888 3,073 3,155 3,268 3,857 4,286 4,740 5,317 5,932 6,853 7,857 8,621 9,660

10,327 10,745 10,963 11,407 12,269 12,963

Total Value 9,878 7,964 11,276 13,097 13,347 16,436 20,853 26,176 26,729 32,487 40,144 40,196 53,979 68,462 77,703 85,774 107,997 105,750 129,691 134,849 171,226 176,304 212,326

? 2016 Thomson Reuters

Page 4 of 6

Hypothetical Illustration

Date 12/31/1996 12/31/1997 12/31/1998 12/31/1999 12/31/2000 12/31/2001 12/31/2002 12/31/2003 12/31/2004 12/31/2005 12/31/2006 12/31/2007 12/31/2008 12/31/2009 12/31/2010 12/31/2011 12/31/2012 12/31/2013 12/31/2014 12/31/2015 01/31/2016

Total

Investment(s) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

10,000

Dividend Income 4,295 3,987 3,856 2,730 3,414 7,378 3,376 3,611 5,282 8,217 11,155 16,315 14,452 8,940 8,602 8,540 10,026 9,184 7,429 8,979 0 184,402

Jeff Secord Business History.20160218

Total Dividend

Income

Capital Gains

Shares Held

Total Value

38,926

8,865

13,705

249,014

42,914

16,666

14,789

286,472

46,770

23,342

16,035

368,002

49,500

37,612

17,509

515,463

52,914

54,278

19,881

478,141

60,292

0

20,215

438,455

63,668

0

20,403

368,062

67,280

0

20,554

503,367

72,562

0

20,750

575,178

80,779

37,660

22,355

640,034

91,934

45,985

24,171

767,189

108,250

54,844

26,229

890,208

122,702

41,468

29,312

553,402

131,642

0

29,663

760,559

140,244

0

29,965

857,599

148,784

0

30,291

792,412

158,810

0

30,614

956,987

167,994

53,635

32,300

1,213,196

175,423

73,967

34,521

1,252,427

184,402

67,316

36,627

1,319,304

184,402

0

36,627

1,233,963

184,402

587,083

36,627

1,233,963

Average annual return on the investment for the period 03/13/1973 - 01/31/2016 : 11.88%

? 2016 Thomson Reuters

Page 5 of 6

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