Investing Essentials
Your dreams are too important to leave to chance
Your investing goals are as unique as you are. Whether you’re
investing on your own or working with one of our Investment
Consultants, on the following pages you’ll find three steps to
help you create an investment plan, determine an appropriate
asset mix for your needs and put it all into action.
Regardless of what you’re investing for or how much experience
you have, American Century Investments® is committed to
providing you the tools, guidance and solutions to help you
reach your goals.
Contents
Define your goal
3
• Create your plan
• Make it automatic
• Keep emotions in check
Design your blueprint
4
• Decode diversification
• Narrow your focus
• Put it into action
Determine your solution
5-6
• Build your plan with one of our asset allocation portfolios:
° Target-risk portfolios
° Target-date portfolios
We’re here to help
7
2
Define your goal
Create your plan
• Declare it. Know what you’re investing for—retirement, college, general goals.
• Date it. Determine when you’ll need your money.
• Estimate it. Add up how much you may need for your goal.
Estimate how much you may need
to invest. Search time value
calculator at americancentury.com.
Make it automatic
When the markets swing, even the most experienced investors may be tempted
to stop investing. However, if you set up an automatic investment, that amount
can add up over time, even if you don’t have much to start with.*
Keep emotions in check
No one knows when market gains will occur and missing just a few of the market’s
best days can lower your return substantially. Successful investing is more likely to
be the result of time in—not timing of—the markets.
Start an automatic plan today
or search automatic investing
for more information at
americancentury.com.
Jumping in and out of the market may cost your portfolio1
Hypothetical Impact of Missing a Few Days of a Market Rally
Missed 30
Best Days
Missed 20
Best Days
Missed 10
Best Days
Invested
throughout
time period
$65,475
$32,676
$20,361
$13,451
Growth from a $10,000 Investment
Hypothetical Market Fluctuation
Dec. 31, 1996 to Dec. 31, 2014.
1
Source: Bloomberg S&P 500® Total Returns. This hypothetical investment is for illustrative purposes only and is not intended to represent any particular investment product. Past performance is not a guarantee of future results. The S&P
500 Index is a capitalization-weighted index of 500 widely traded stocks. Created by Standard & Poor’s, it is considered to represent the performance of the stock market in general. It is not an investment product available for purchase.
*This strategy, known as dollar-cost averaging, does not assure a profit or protect against loss in declining markets. To fully take advantage of dollarcost averaging, you should be prepared to continue investing at regular intervals, even during economic downturns.
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Design your blueprint
An increasingly complex market and volatility have driven demand for investments that
include multiple types of disciplines (stocks, bonds, cash) to help balance risk and performance.
Diversification
Spreading your money across several
investment types that react differently
when markets change.
Asset allocation
The percentage mix each discipline
holds based on your goals, risk
comfort and time frame.
Asset allocation portfolios
A variety of mutual funds wrapped
together so you get diversification and
asset allocation in a single fund.
Decode diversification
At the core of this strategy is a time-tested principle—diversification. Although it can’t
protect against loss, we strongly believe building a portfolio based on this approach gives
you the best blueprint to reaching your long-term investing goals.
Narrow your focus
While diversification is an overall strategy, the principle of asset allocation starts to
narrow your focus. This is where you include a percentage of stocks, bonds and cash
in your portfolio based on your goals, risk comfort and when you’ll need the money.
Put it into action
When you are ready to put your blueprint into action, choose how you’d like to work with us.
• Build your own diversified portfolio—Select from our broad lineup of 80+ no-load mutual funds.
• Let us do the work for you—Choose one of our two types of asset allocation portfolios.
These portfolios offer broad diversification and professional money management in a
single investment.
1
More aggressive investing: Higher highs, lower lows
60%
47%
Hypothetical Annual Return %
50%
53%
38%
40%
26%
30%
30%
20%
10%
0%
-10%
-20%
-15%
-23%
-30%
-30%
-40%
-38%
-50%
Conservative
Moderate
-44%
Aggressive
Style of Investing
Returns are for the period Dec. 31, 1926 to Dec. 31, 2014.
¹ Returns for each hypothetical investment style and historical averages were calculated by American Century Services, LLC, using information and data presented in Global Financial Data (GFD) Software. All rights reserved.
Used with permission. Stock returns are represented by the S&P 500 Total Return Index constructed by GFD, using long-term historical data for stock dividends for the S&P Composite from the Cowles Commission and
from S&P itself. Data is used to calculate total returns for the S&P Composite using the S&P Composite Price Index and dividend yields through 1970, official monthly numbers from 1971 to 1987 and official daily data from
1988 on. It is used as a long-term measure of U.S. stock market performance. USA Total Return AAA Corporate Bond Index constructed by GFD, using long-term historical data for corporate bonds. The index uses the yield
from Macaulay’s High Grade Rails Index from 1857 to 1918 and the yields from Moody’s AAA Corporate Bond Index from 1919 on to calculate the total returns for the index. The corporate bonds in the index are long-term
with a maturity of over 20 years. USA Total Return T-Bill Index constructed by GFD, using long-term historical data for Government bonds. The bill index uses the minimum rate of the coupon on U.S. Government bonds and
commercial bills from 1835 to 1918. The coupon for U.S. Governments was set at 5% from 1835 to 1871, 4% from 1872 to 1878 and 3% from 1879 to 1918. The yield on Treasury bills is used from 1919 to date.
Investment return and principal value of security investments will fluctuate. The value at the time of redemption may be more or less than the original
cost. Past performance is no guarantee of future results.
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Determine your solution
Select your comfort with risk: One Choice Target Risk Portfolios
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Make investing for retirement, college, or any other objective, as convenient as identifying
your comfort with risk.
Determine your risk comfort level
One Choice Target Risk Portfolios range from very conservative to very aggressive, and
you choose a portfolio based on your tolerance for risk. Each portfolio is a fund of funds
(which invests in other funds rather than individual securities), and its performance and risk
characteristics are dependent on the underlying funds.
Check your risk barometer periodically
While the portfolios are actively managed to maintain their targeted risk level, your comfort
with risk may change over time. Periodically check your comfort level by completing our online
Investment Planner. A portfolio’s risk designation is intended to reflect its relative short-term
price volatility compared to the other One Choice Target Risk Portfolios.
Which solution could
be right for you?
Here and on the following page,
see how one of our One Choice
®
Portfolios , based on your comfort
with risk or your target date, may
help you reach your goals.
When you’re ready to invest:
1. Use our online Investment Planner to help you determine your risk tolerance.
2. Choose a One Choice Target Risk Portfolio that matches your comfort level with risk.
Your risk level aligns to each portfolio’s mix of investments
One Choice Target Risk Portfolios
% Stocks
% Bonds
% Cash Alternatives
Very Conservative
25
67
8
Conservative
45
47
8
Moderate
64
31
5
Aggressive
79
20
1
Very Aggressive
96
3
1
The managers regularly review the portfolios and may make changes to the asset class allocations that deviate from the target risk mix.
Visit americancentury.com and search target risk for the most recent percentages.
Visit americancentury.com | 5
The performance of the portfolios is
dependent on the performance of their
underlying American Century Investments
funds and will assume the risks
associated with these funds. The risks
will vary according to each portfolio’s
asset allocation, and a fund with a later
target date is expected to be more volatile
than one with an earlier target date.
Select your target date: One Choice Target Date Portfolios
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A straightforward investment plan that works to match how much time you have
to meet your goal whether for retirement or any other goal.
Determine your target date
Each portfolio’s target date represents the approximate year when you plan to
start withdrawing your money. Choose the portfolio closest to your target date,
and our investment professionals will actively manage, diversify and adjust the
fund’s portfolio over time.
Aim to balance risk and performance
The portfolios are designed to provide the optimal trade-off of risk and reward
based on the target date. The funds are adjusted annually to be more conservative.
As the target date approaches, the managers reduce the fund’s exposure to stocks
and increases its exposure to bonds and cash. Even with this measured approach,
it’s important to note the principal value of your investment is not guaranteed at
any time, including at the target date.
When you’re ready to invest:
1
STEP
ONE
2
Calculate your target date.
Birth Year
BIRTH YEAR
1967
+
AGE THAT
YOU WILL NEED
YOUR MONEY
65
=
TARGET DATE
2032
STEP
TWO
Select the One Choice Target Date
Portfolio closest to your target date.
One Choice Target Date Portfolios
% Stocks
% Cash
% Bonds Alternatives
1988 & after
One Choice 2055 Portfolio
85.00
15.00
-
1983 - 1987
One Choice 2050 Portfolio
82.25
17.75
-
1978 - 1982
One Choice 2045 Portfolio
80.00
20.00
-
1973 - 1977
One Choice 2040 Portfolio
73.40
24.10
2.50
1968 - 1972
One Choice 2035 Portfolio
67.00
28.00
5.00
1963 - 1967
One Choice 2030 Portfolio
61.00
34.00
5.00
1958 - 1962
One Choice 2025 Portfolio
55.00
40.00
5.00
1953 - 1957
One Choice 2020 Portfolio
50.00
42.50
7.50
Before 1953
One Choice In Retirement Portfolio
45.00
45.00
10.00
As of December 2014.
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Based on your birth year and a retirement age of 65.
The managers regularly review the portfolios and may make changes to the asset class allocations that deviate from the target date mix.
Visit americancentury.com and search target date for the most recent percentages.
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We’re here to help
A portfolio that matches your investment goals may help you have the
best chance for investing success. Not sure if your portfolio aligns with your
goals? Try our online Investment Planner to find out.
Expert guidance
Try our complimentary Investment Planner
Our online tool will give you valuable guidance toward the asset
allocation mix and funds that are compatible with your answers
to a series of questions about your goals, time frame and how
you feel about risk. You’ll receive:
• A free online guide to help you invest toward your long-term goals.
• Results you can reference anytime from your online My Account page.
• A printable report that details your asset allocation mix, fund options
and suggested next steps.
If you prefer to talk to an Investment Consultant, please call the
appropriate number at the bottom of the page.
Start your free guidance
session online today.
Log in or register your account
at americancentury.com
Tools for investing
Choose from a variety of online educational articles and calculators to
help you make informed investment decisions. Go to the Planning tab
at americancentury.com.
Anywhere, anytime investing | americancentury.com
Time is something we could all use more of. That’s why we’ve designed our
online services to help you spend more time doing the things you love and
less time managing your accounts. Take advantage of the services that are
always available at americancentury.com.
You should consider the fund’s investment objectives, risks, charges and expenses carefully before you invest.
The fund’s prospectus or summary prospectus, which can be obtained by visiting americancentury.com,
contains this and other information about the fund, and should be read carefully before investing.
Personal accounts: 1-800-345-2021 | Business, Not-For-Profit and Employer-Sponsored Retirement Plans: 1-800-345-3533
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Actively Investing in Your Success
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At American Century Investments, we believe the ultimate measure of our performance is our
clients’ success. We relentlessly focus on delivering superior investment performance and
developing long-term relationships with our clients. Our track record, our business model and
the legacy of our founder set us apart in the industry.
• Performance focus for more than 55 years
• Pure play business model
• Privately-controlled and independent
• Profits with a purpose
American Century Investment Services, Inc., Distributor
©2015 American Century Proprietary Holdings, Inc. All rights reserved.
CL-BKT-85039 1503
P.O. Box 419385 | Kansas City, MO 64141-6385 | Business Retirement Specialists 1-800-345-3533