• Developing your retirement income strategy is part of the Envision® process.
• We can help you analyze possible expenses and sources of income.
• Checking on your strategy annually can help you maintain course.

It starts with a plan

Creating a plan can help you stay focused, plan for challenges ahead, and make choices that work for you. 

Our Envision planning process is the foundation we use to develop your retirement income plan. It can help you make choices and tackle the following topics:

• When and how can I retire with confidence?
• How can I help make my money last as long as I’m retired?
• Where will my income come from?
• How do I prepare for and respond to events throughout retirement?
• When and how should I address my legacy goals? 

7 common retirement planning moves

Will the money in your investment accounts last through retirement? Here are some steps that go beyond the basics of using tax-advantaged funds and making regular contributions.
 

1. Review your portfolio - Conduct regular investment checkups on your own and with us.
2. Maintain emergency savings - Wells Fargo Advisors recommends keeping an emergency fund with enough money to cover living expenses for three to six months. Keep emergency funds in a liquid account you can easily access if needed.
3. Set an appropriate asset allocation - Investments are fluid. Some are more volatile, but all can be affected by market fluctuations. Adjust your assets to align with your current goals and tolerance for risk.
4. Itemize your income plan - Understand where your retirement funds will come from. List out all sources, such as Social Security and pensions. For each item, list how it might generate income for your portfolio.
5. Clean up your accounts - Consider consolidating accounts. You’ll not only have less paperwork, you can help keep an eye on your asset allocation and overall investment strategy.  We can talk about your choices and what might make the most sense for you. Before taking any action, speak with your current retirement plan administrator and tax professional.
6. Sell assets strategically - Selling assets can have tax implications. Proceeds could nudge you into a higher tax bracket. Balance the concern of minimizing taxes when you’re selling assets with your portfolio’s allocation strategy. Talk with us about the choices you have in this situation.
7. Talk with family - Partners and spouses should be on the same page regarding your financial portfolio. Cover some key financial details: 

• Current total assets
• How much you have saved right now
• How much is in each account
• Where the funds are located
• Your budget

Common risks to address

While we develop your retirement plan, you’ll want to look at risks such as inflation, market events, health needs, withdrawal strategy, and how long you’re likely to live. Understanding the impact these challenges may have on your savings and planning for them can help you stay the course. 

Have an ongoing process

Planning for retirement is not a “one and done” kind of activity. A good plan should be checked regularly and adjusted, as necessary. Keep an eye on your portfolio, talk about your expectations, and prepare for the unexpected.
 
Schedule an annual checkup with us to review your plans, your current circumstances, and your portfolio. We’ll work together to discuss your choices and what works for you.

Next steps 

• Think about what you hope your retirement will be.
• Write down all your possible sources of income and expenses in retirement.
• Take a look at your portfolio and call us if you have any questions about changing your asset allocation.
• Call us to start on your personalized retirement income plan.

 

Wells Fargo Advisors does not provide tax or legal advice. 

Investing involves risk including the possible loss of principal. Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns. Diversification does not guarantee profit or protect against loss in declining markets. Stocks offer long-term growth potential, but may fluctuate more and provide less current income than other investments. An investment in the stock market should be made with an understanding of the risks associated with common stocks, including market fluctuations. Dividends are not guaranteed and are subject to change or elimination.

• Everyone could use an estate plan – not just the wealthy.
• 5 documents are essential for many estate plans.
• An estate planning attorney and your accountant will work with your Financial Advisor.

Estate planning: a matter of control 

You might associate estate planning with famous people you see in the news. In fact, estate planning could be appropriate for everyone. 

Consider your assets: bank accounts, investment accounts, 401(k) or 403(b) plan accounts, house, cars, jewelry, and heirlooms. This is your estate and your estate plan can define what you would like to happen to these assets when you die. 

An estate plan can also take care of you as you get older or if you become ill or incapacitated. Being wealthy has little to do with it. 

If you don’t make your own plan, your family may be left scrambling at an already difficult time. Bottom line: If you don’t decide, someone will decide for you.  

Five essential documents 

These five documents are often essential to an estate plan: 

• Will - Instructions for distributing your assets when you die. You will name a personal representative (executor) to pay final expenses and taxes and distribute remaining assets. Name a guardian to raise your minor children if both parents die. 
• Durable power of attorney – You give a trusted individual management power over your assets if you can’t manage them yourself. This document is effective only while you’re alive. 
• Health care power of attorney - You choose someone to make medical decisions on your behalf if something were to happen and you can’t make them yourself. 
• Living will – Shares your intentions about life-sustaining medical measures if you are terminally ill. No one is given authority to speak for you. 
• Revocable living trust - You can provide for continued management of your financial matters while you are alive, after your death, and even for generations after. 

Why beneficiary designations are important

Beneficiary designations can be an easy way to transfer an account or insurance policy when you die. But if you didn’t complete beneficiary designations, or haven’t updated them, they can cause issues with your estate plan. 

Designations on forms are often filled out without much thought – but they’re important and deserve your attention. Beneficiary designations on forms like your insurance policy and 401(k) take priority over other estate planning documents, like your will or trust. 

Let’s say you specify in your will you want everything to go to your spouse after your death. But you never changed the beneficiary designation on your life insurance policy and it names your ex-spouse. Your ex may end up getting the proceeds. 

Turn to a team of professionals 

Making the decisions involved with estate planning may seem overwhelming. It doesn’t have to be. You can start by organizing your important documents. 

Turn to a team of trusted professionals, including your financial advisor, an estate planning attorney, and your accountant. They know the questions to ask and can help you avoid potential pitfalls. 

If you currently don’t have relationships with an attorney and an accountant, we can make some recommendations. We can also discuss our role in the planning process and how you can get started. 

Next steps 

• Make an appointment with us to talk about your estate planning goals.
• Start gathering your financial documents.
• Check the beneficiary designations on your financial and investment accounts.

Trust services available through banking and trust affiliates in addition to non-affiliated companies of Wells Fargo Advisors. 

Wells Fargo Advisors and its affiliate do not provide tax or legal advice. Please consult with your tax and/or legal advisors before taking any action that may have tax and/or legal consequences.  Any estate plan should be reviewed by an attorney who specializes in estate planning and is licensed to practice law in your state.

• Your investments are important. Advisory Services can help them receive the care they deserve.
• Your investments can be professionally managed or a Financial Advisor can help you manage them yourself.
• Wells Fargo Advisors programs allow flexibility to help you reach your goals. 

Managing investments 

A lot may be riding on your investments: retirement, children’s or grandchildren’s education, your financial legacy. Your investment plan should get the attention it deserves. 

Some investors enjoy managing their own plan. They are confident in their abilities and have the time to research and monitor their investments’ performance. 

You’re not alone if you don’t fall into that category. Like many others, you may want to work with a professional by taking advantage of an advisory program.

 

Using an advisory program 

You can save time and have a professional manage your investments when you use the services of an advisory program. 

Advisory programs generally fall into two categories. One gives another party the power to make decisions for your account’s day-to-day management. This means you can allow a portfolio manager — in some cases your Financial Advisor — to decide when to buy, sell, and hold investments without consulting you. 

Your portfolio manager will make decisions based on a variety of factors: 

• Your long-term objectives
• The time you have to reach your objectives
• Your risk tolerance 

In the other program, you collaborate with your Financial Advisor. We will provide you with objective advice and guidance based on your needs, goals, and today’s investment environment, to help you make your own buy, sell, and hold decisions. 

Fee replaces commissions 

So how can an advisory account differ from a traditional brokerage account? One difference is how you pay for the services you receive. In an advisory account program, you generally pay a fee. This is often charged on a quarterly basis based on a percentage of your account’s value. In a traditional brokerage account you would pay a commission for each transaction. 

Flexible range of alternatives 

You can choose which advisory services program you implement. Wells Fargo Advisors offers an array of programs. You can decide what products you would like to have managed, such as mutual funds, exchange-traded funds (ETFs), stocks, bonds, and commodity-based investments. 

We can discuss the programs with you and see what fits your situation – and what makes you feel more confident in helping you reach your goals. 

Next steps

Decide if you would like some extra help with making your investment decisions.

Make an appointment to talk with us about advisory accounts.



The fees for advisory programs are asset-based and assessed quarterly in advance. There may be a minimum fee to maintain this type of account. Fees include advisory services, performance measurement, transaction costs, custody services, and trading. These fees do not cover the fees and expenses of any underlying exchange traded fund (ETF), closed-end funds, or mutual funds in the portfolio. Advisory accounts are not designed for excessively traded or inactive accounts and are not appropriate for all investors. Please carefully review the Wells Fargo Advisors advisory disclosure document for a full description of our services, including fees and expenses. The minimum account size for these programs is between $10,000 and $2,000,000.

• Generally you have four distribution choices for your qualified employer–sponsored retirement plan (QRP) assets
• Each has unique factors to keep in mind
• Know all of your options before making a decision

Decide which option is right for you 

If you’re changing jobs or retiring, you’ll need to decide what to do with assets in your 401(k) or other qualified employer-sponsored retirement plan (QRP). These savings can represent a significant portion of your retirement income, so it’s important you carefully evaluate all of the options.   

Generally, you have four options:

• Roll the assets to an Individual Retirement Account (IRA)
• Leave the funds in your former employer’s retirement plan (if allowed)
• Move savings to your new employer’s plan (if allowed)
• Withdraw or “distribute” the money

Roll the assets to an IRA

Rolling your retirement savings to an IRA provides the following features:

• Assets continue their tax-advantaged status and growth potential
• You can continue to make annual contributions, if eligible
• An IRA often gives you more investment options than are typically available in an employer’s plan
• You also may have access to investment advice 

Before rolling your assets to an IRA consider the following: 

• IRA fees and expenses are generally higher than those in your employer’s retirement plan
• Loans from an IRA are prohibited
• In addition to ordinary income taxes, distributions prior to age 59 1/2 may be subject to a 10% IRS tax penalty
• IRAs are subject to state creditor laws
• If you own appreciated employer securities, favorable tax treatment of the net unrealized appreciation (NUA) is lost if rolled into an IRA

Leave the funds with your former employer 

You may be able to leave your retirement plan savings in your former employer’s plan, assuming the plan allows and you are satisfied with the investment options.  You will continue to be subject to the plan’s rules regarding investment choices, distribution options, and loan availability.  

Keeping assets in the plan features: 

• Investments keep their tax-advantaged growth potential
• You retain the ability to leave your savings in their current investments
• You may avoid the 10% IRS early distribution penalty on withdrawals from the plan if you leave the company in the year you turn 55 or older (age 50 or older for certain public safety employees)
• Generally, have bankruptcy and creditor protection
• Favorable tax treatment may be available for appreciated employer securities owned in the plan

Move savings to your new employer’s plan 

If you’re joining a new company, moving your retirement savings to your new employer’s plan may make sense. This may be appropriate if:

• You want to keep your retirement savings in one account
• You’re satisfied with the investment choices offered by your new employer’s plan

This alternative shares many of the same advantages and considerations of leaving your money with your former employer. In addition, there may be a waiting period for enrolling in your new employer’s plan. Investment options are chosen by the QRP sponsor and you must choose from those options.

Withdraw or “distribute” the money 

Carefully consider all of the financial consequences before cashing out. The impact will vary depending on your age and tax situation.  Distributions prior to age 59 1/2 may be subject to both ordinary income taxes and a 10% IRS tax penalty. If you must access the money, consider withdrawing only what you need until you can find other sources of cash. 

Features 

• You have immediate access to your retirement savings and can use however you wish.
• Although distributions from the plan are subject to ordinary income taxes, penalty-free distributions can be taken if you turn:
• Age 55 or older in the year you leave your company.
• Age 50 or older in the year you stop working as a public safety employee (certain local, state or federal) — such as a police officer, firefighter, emergency medical technician, or air traffic controller — and are taking distributions from a governmental defined benefit pension or governmental defined contribution plan. Check with the plan administrator to see if you are eligible.
• If you own employer securities, a distribution may qualify for the favorable tax treatment of NUA.

Keep in mind

• Your former employer is required to withhold 20% of your distribution for federal taxes.
• Distribution may be subject to federal, state and local taxes unless rolled over to an IRA or another employer plan within 60 days.
• Your investments lose their tax-advantaged growth potential.
• Your retirement may be delayed, or the amount you’ll have to live on later may be reduced.
• Depending on your financial situation, you may be able to access a portion of your funds while keeping the remainder saved in a retirement account. This can help lower your tax liability while continuing to help you save for your retirement. Ask your plan administrator if partial distributions are allowed.
• If you leave your company before the year you turn 55 (or age 50 for public service employees), you may owe a 10% IRS tax penalty on the distribution.

What to consider if you own company stock

Net unrealized appreciation (NUA) is defined as the difference between the value at distribution of the employer security in your plan and the stock’s cost basis. The cost basis is the original purchase price paid within the plan. Assuming the security has increased in value, the difference is NUA.  NUA of employer securities received as part of an eligible lump-sum distribution from an employer retirement plan qualifies for special tax treatment. In most cases, NUA will be available only for lump-sum distributions — partial distributions do not qualify.

We can help educate you so you can decide which option makes the most sense for your specific situation.

Next steps

• Learn about your choices before taking a distribution
• Pay special attention to taxes, penalties and fees associated with each action
• Contact us or your  tax professional if you have questions about how to proceed

When considering rolling over assets from an employer plan to an IRA, factors that should be considered and compared between the employer plan and the IRA include fees and expenses, services offered, investment options, when penalty free distributions are available, treatment of employer stock, when required minimum distributions begin, protection of assets from creditors, and bankruptcy. Investing and maintaining assets in an IRA will generally involve higher costs than those associated with employer-sponsored retirement plans. You should consult with the plan administrator and a professional tax advisor before making any decisions regarding your retirement assets. Withdrawals are subject to ordinary income tax and may be subject to a federal 10% penalty if taken prior to age 59 1/2.

Wells Fargo Advisors does not provide tax or legal advice. Please consult with your tax and legal advisors to determine how this information may impact your own situation.

• Insurance is valuable for employees and owners.
• Owners get to retire, too.
• You can begin planning now for retirement, selling your company, or the event of your death. 

Wells Fargo Advisors provides products and services, available through your Financial Advisor, that help you manage your assets and plan for the future. 

Customized products and services for business owners 

We are committed to helping you maximize the success and profitability of your business. Our specialized products and services can help give your business the cash flow and support it needs to thrive. 

Some of the services we offer and can assist with include: 

Employee benefit plans and packages

A competitive employee benefit package helps you attract and keep employees, regardless of the size of your company.  

Business owner life insurance

As a business owner, it’s important to consider both replacing the income your family depends on, and also providing funds to pay off business-related liabilities.  

Funding a buy-sell agreement

If your business has more than one owner, you need to understand the risks you may face if one of you dies unexpectedly. A buy-sell agreement sets up how ownership of the business may be transferred if one owner dies.

Key person life insurance

Proceeds from this type of business insurance can help offset the loss of sales your business would experience or expenses it may incur if a key person dies. 

Succession planning and business exit strategies

It can be helpful to start the succession planning and exit strategy process many years in advance. 

• Selling a business: There are many options to consider in both the sale and how you will generate income after the sale.
• Transferring the business to a family member: There are a variety of succession planning strategies you can use to transfer the business to a family member 

Next steps 

• Make an appointment with us to talk about your business needs.
• Talk with your family or partners about insurance or succession planning.
• Check the beneficiary designations on your financial and investment accounts.

Insurance products are offered through nonbank insurance agency affiliates of Wells Fargo & Company and are underwritten by unaffiliated insurance companies. 

• You have many options for investing.
• Investments should work together to help you accomplish your financial goals.

Types of investments

Part of the investment planning process is making investment choices that fit your investment strategy. Those investments should work together to help you accomplish your financial goals. We’re dedicated to providing you a wide range of investment products and services to help you meet them. 

As an investor, you have many options. Common types of investments include: 

• Stocks  - An investment giving you partial ownership in a company based on the number of shares you purchase. Stocks tend to fluctuate more in the short term, but may perform well over time. 
• Bonds  - An investment that functions as a loan to a government or institution in return for regular interest payments. Bonds can provide more stability than stocks, even though bonds have historically provided lower returns than stocks. 
• Mutual funds - A fund allowing you to pool your money with others in a professionally managed portfolio. Mutual funds offer diversification through a mix of investments, such as stocks or bonds.¹
• Exchange-traded funds (ETFs) - A basket of securities traded throughout the day — just like individual stocks — on a national stock exchange. Like mutual funds, you purchase shares of an overall fund rather than individual investments.¹
• Annuities - A contract between you and an insurance company requiring the insurer to make payments to you, either immediately or in the future. You make contributions to the annuity for a guaranteed income stream.²
• Brokered certificates of deposit (CDs) - Brokered CDs are issued by banks, purchased in bulk by securities firms and sold to clients. Investors do not receive physical certificates for their brokered CDs, but instead receive a periodic account statement detailing their CD holdings.³  Brokered CDs’ market value may fluctuate over time.   

Contact a Financial Advisor to learn more about the types of investments to consider for your portfolio.

Next steps

• Understand the variety of investments available.
• Talk with your Financial Advisor about investment choices.

¹Investment returns may fluctuate and are subject to market volatility, so that an investor’s shares, when redeemed, or sold, may be worth more or less than their original cost. 

²Variable annuities are long-term investments appropriate for retirement funding and are subject to market fluctuations and investment risk. Guarantees are based on the claims-paying ability of the issuing insurance company. Guarantees apply to minimum income from an annuity; they do not guarantee an investment return or the safety of the underlying funds.

³Generally, CDs may not be withdrawn prior to maturity. CDs are FDIC insured up to $250,000 per depositor per insured depository institution for each account ownership category. CDs may be issued by out of state institutions.