college america 529 plan

AI-37599© American Funds Distributors, Inc.

Figures are past results and are not predictive of results in future periods.

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

Investing in their future

CollegeAmerica®

The 529 college savingsplan available nationwideand trusted by financialadvisers and the familiesthey help

AI-90016V2


Agenda

An academic decision An educated choice Building your plan

V2


An academic decision

V2


529 college savings plansAn attractive combination of benefits

Tax advantages Flexibility Control

V2


The tax-free advantageWhy tax-free investing?

Assumes an 8% average annual rate of return (compounded monthly) for both investments and a 25% income tax rate. (The typical mutual fund investor falls into the 25% tax bracket.) Your tax rate may vary. Current minimum tax rates on capital gains and dividends could make taxable investment returns higher, thus reducing the difference between the two ending values. Results shown are hypothetical and are not intended to represent an investment in a specific fund. Your investment experience will differ. Regular investing does not ensure a profit or protect against loss. You should consider your willingness to keep investing when share prices are declining.

V2

1110987654321Year 12 13 14 15 16 17 18

$50,000

40,000

30,000

20,000

10,000

0

$48,329

$38,929

Tax-free account

Taxable account

AI-90002

An educated choice

V2© American Funds Distributors, Inc.


Why CollegeAmerica?

Designed for use with advisers Among the lowest operating expenses* Diverse investment options Experienced investment management Low start-up amounts Among Morningstar’s top-rated 529 plans

since 2004†

V2

* According to a 2011 Morningstar study of 529 college savings plans† Based on annual Morningstar reports. Among the criteria Morningstar assessed were fees, flexibility of investment options and the fund company’s record of treating shareholders well.


Never too early … or too lateHow your monthly investment could have grown

U.S. stocks are measured by Standard & Poor’s 500 Composite Index. Source for CDs — Thompson 180-day CDs. Results assume reinvestment of all distributions and, for American Balanced Fund, are hypothetical prior to the 529 share-class inception date of 2/15/02. The indexes are unmanaged and, therefore, have no expenses.

V2

Steady progress during a difficult period (18 years ended December 31, 2011)

0

$60,325American Balanced Fund®

$70,000

60,000

30,000

40,000

50,000

20,000

10,000

$53,355U.S. stocks

$37,925CDs

94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11

Figures shown are past results for Class A shares 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. Fund results are for Class A shares and reflect a deduction of the maximum sales charge (5.75% for equity funds). For current information and month-end results, visit americanfunds.com.

AI-90009

Building your plan

V2© American Funds Distributors, Inc.


Building your planWith 25 funds to choose from, investors can:

Invest in a single fund Build a customized portfolio of funds Select a predefined investment portfolio

V2


Building your planThree of the predefined portfolios

V2

PreservationGrowth Balanced

The Bond Fund

of AmericaSM

Intermediate Bond Fund of America®

Short-Term Bond Fund of AmericaSM

Fundamental InvestorsSM

AMCAP Fund®

EuroPacific Growth Fund®

American Balanced

Fund®

The Bond Fund of

AmericaSM

Capital World Growth and Income

Fund®

SMALLCAP WorldFund®

Washington Mutual

Investors FundSM

New Perspective

Fund®


Enrollment is a long way off

This sample asset allocation is for illustrative purposes only. V2

GrowthSignificant growth-fund holdings provide you with the potential to grow your college savings nest egg over a longer time frame.

Fundamental Investors

AMCAP Fund

EuroPacific Growth Fund

SMALLCAP WorldFund


Shorter horizon or increased stability


BalancedIncludes everything from growth stocks to bonds, which may be appropriate when your beneficiary has a few years until college or if you’re seeking to reduce volatility.

American Balanced

Fund

The Bond Fund of America

Capital World Growth and

Income Fund

Washington Mutual

Investors Fund

New Perspective

Fund


Enrollment is near


PreservationA mix of bond funds designed to offer stability (relative to growth funds) and fixed-income diversity as the first day of college is drawing nearer.

The Bond Fund

of America

Intermediate Bond Fund of America

Short-Term Bond Fund of America


American Funds in CollegeAmericaEquity funds

V2

Growth funds

AMCAP Fund®

EuroPacific Growth Fund®

The Growth Fund of America®

The New Economy Fund®

New Perspective Fund®

New World Fund®

SMALLCAP World Fund®

Equity-income funds

Capital Income Builder ®

The Income Fund of America®

Growth-and-income funds

American Mutual Fund®

Capital World Growth and Income Fund®

Fundamental InvestorsSM

International Growth and Income FundSM

The Investment Company of America®

Washington Mutual Investors FundSM

Balanced funds

American Balanced Fund®

American Funds Global Balanced FundSM


American Funds in CollegeAmericaFixed-income and money market funds

V2

Bond funds

American Funds Mortgage Fund®

American High-Income TrustSM

The Bond Fund of AmericaSM

Capital World Bond Fund®

Intermediate Bond Fund of America®

Short-Term Bond Fund of AmericaSM

U.S. Government Securities FundSM

Money market fund

American Funds Money Market Fund®


The American Funds difference

V2

Consistent approach

Proven system

Superior long-term

track record


Planning for college

An academic decision– 529 college savings plans

An educated choice– CollegeAmerica

Building your plan – Trust American Funds

V2


American Balanced Fund® 0.11% 1.53% 5.38% 0.62%

1 year 5 years 10 years Expense ratio

American Funds investment resultsAverage annual total returns for periods ended 6/30/12

Figures shown are past results for Class A shares 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. Fund results are for Class A shares and reflect a deduction of the maximum sales charge (5.75% for equity funds). For current information and month-end results, visit americanfunds.com.

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The expense ratio is as of the fund’s prospectus available at time of publication. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Visit americanfunds.com for more information.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses, summary prospectuses and CollegeAmerica Program Description, which can be obtained from a financial professional and should be read carefully before investing. CollegeAmerica is distributed by American Funds Distributors®, Inc. and sold through unaffiliated intermediaries.

© American Funds Distributors, Inc. AI-99978


Depending on your state of residence, there may be an in-state plan that provides tax and other benefits not available through CollegeAmerica.

CollegeAmerica is sponsored by Virginia 529. CollegeAmerica is distributed by American Funds Distributors® and sold through unaffiliated intermediaries.

You should discuss the tax implications of 529 plans with your legal and/or tax advisers, as features may vary significantly from state to state. You should read the appropriate 529 plan program description before investing. It includes details about the plan’s risks, charges and tax treatment.

Most 529 plans will accept both in-state and out-of-state applicants. While federal tax treatment of 529 plans is identical regardless of the state plan, state tax treatment varies. State tax treatment may also vary for in-state and out-of-state residents.

Each state’s 529 plan must be evaluated based upon its own merits relative to your needs, including the tax effects on the contributor and the beneficiary.

Regular investing neither ensures a profit nor protects against loss in a declining market.

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. Bond prices and a bond fund’s share price will generally move in the opposite direction of interest rates.

Diversifying investments does not insure against market loss.

Investing outside the United States involves 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.

Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds.

Small-company stocks entail additional risks, and they can fluctuate in price more than larger company stocks.

An investment in the money market fund is not insured or guaranteed by the FDIC or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.

AI-44440

college america 529 plan

Documents