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Who are you ?

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Who are you ?

RETIREMENT PLAN INVESTOR

Use your plan ID (available on your account statement) to determine which employer-sponsored retirement plan website to use:

IF YOUR PLAN ID BEGINS WITH IRK, BRK, 1, 2 OR 754

Visit americanfunds.com/retire

IF YOUR PLAN ID BEGINS WITH 34 OR 135

Visit myretirement.americanfunds.com

Getting started

Put extra money to work

Become cash savvy

It's always important to have cash on hand in case of an emergency or unexpected expense. But are you keeping too much cash out of the market because you’re not sure what to do with it? It may be time to consider your options.

Catch-up time

If you’ve fallen behind on one of your current investment goals — or hope to reach them sooner — using your extra cash to get back on track might be an approach to consider. Depending on the type of account you’re using to reach that goal, you could either make a lump-sum contribution or increase your regular contribution rate. 

Saving for a rainy day

If you’re looking for relatively low-risk alternatives to low-yielding bank or credit union savings accounts, you may want to consider money market funds and/or short-term bond funds. Unlike many bank products, however, keep in mind these investments are not FDIC-insured and still involve risk, so you can lose money.

Looking ahead

Having extra cash often creates an opportunity to achieve a new investment goal. When setting your goal, it’s important to consider how much money you need to finance it, how many months or years you have to reach it (also known as your investment time horizon), and how much risk you’re willing to take. All are important factors when considering your investment options.

Over time, the difference can add up

Save smarter

Don't be fooled into thinking that a traditional savings account is always your best option for cash. 

FICTION: Rates are so low right now, it doesn’t matter where I put extra cash.
FACT: Even when interest rates are low, some rates are lower than others. It pays to do some research and evaluate whether a low-risk, higher yielding alternative would work for your extra cash. Keep in mind that investment products are not FDIC-insured.
FICTION: Unless you have a 30+ year time horizon, you should save your money, not invest it.
FACT: Think less about the right or wrong strategy and more about the strategy that fits with your goal, risk tolerance and time horizon.
FICTION: I don't have a goal for my extra cash so I should just put it in a savings account until I do.
FACT: Even without a goal, it’s still worth looking at alternatives to a savings account for spare cash. If you wait several years before you use this money, you may miss out on the opportunity to earn more.

You could lose money by investing in American Funds U.S. Government Money Market Fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency. The fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will at any time.

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 a financial professional and should be read carefully before investing.

The value of fixed income securities may be affected by changing interest rates and changes in credit ratings of the securities.

The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings.

Visit the SEC website for the American Funds U.S. Government Money Market Fund's most recent filings.

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 should not be considered advice, an endorsement or a recommendation.

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.

Use of this website is intended for U.S. residents only.

American Funds Distributors, Inc., member FINRA.

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.