1) Immediate and tax-deferred annuities

Insurance products are offered through nonbank insurance agency affiliates of Wells Fargo & Company and are underwritten by unaffiliated insurance companies.
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 any underlying funds, if applicable. Guaranteed income riders are available at an additional cost.

2) Individual bonds or bond funds

Investments in fixed-income securities are subject to market, interest rate, credit and other risks. Bond prices fluctuate inversely to changes in interest rates. Therefore, a general rise in interest rates can cause a bond’s price to fall. Credit risk is the risk that an issuer will default on payments of interest and/or principal. This risk is heightened in lower rated bonds. If sold prior to maturity, fixed income securities are subject to market risk. All fixed income investments may be worth less than their original cost upon redemption or maturity.


3) Income stocks with a history of raising dividends 

The Diversified Stock Income Plan (DSIP) is a preselected, regularly reviewed list of stocks with attractive yields, chosen because of the likelihood of the companies to consistently raise annual dividends. When looking for companies to include on the list, the Wells Fargo Advisors Advisory Services Group goal is to find stocks with attractive current yields that are likely to result in a growing stream of income over time while taking into consideration company fundamentals. The stocks on the list are categorized according to sector to facilitate construction of a well-diversified portfolio across various sectors. With a package of such stocks, we are seeking a relatively lower risk way for conservative income and growth-oriented equity investors to potentially keep up with the rising cost of living. 

Of course, dividends are not guaranteed and are subject to change or elimination.

Stocks are subject to market risk which means their value may fluctuate in response to general economic and market conditions, the prospects of individual companies, and industry sectors. Investments in equity securities are generally more volatile than other types of securities.

4) Closed-end funds and exchange-traded funds (ETF's)

Closed-End Funds are actively managed and can employ a number of investment strategies in pursuit of the fund’s objectives. Some strategies may increase the overall risk of the fund and there is no assurance that any investment strategy will be successful or that the fund will achieve its intended objective. Closed-end funds are subject to different risks, volatility, fees and expenses. Many closed-end funds can leverage their assets to enhance yields. Leverage is a speculative technique that exposes a portfolio to increased risk of loss, may cause fluctuations in the market value of the fund’s portfolio which could have a disproportionately large effect on the fund’s NAV or cause the NAV of the fund generally to decline faster than it would otherwise. The use of leverage and other risk factors are more fully described in each closed-end fund’s prospectus under the heading “Risk Factors.”

Exchange-Traded Funds are subject to risks similar to those of stocks. Investment 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.

5) Managed distribution

There are various methods to maintain an asset allocation appropriate for you investment objective and periodically sell to create your required income needs. Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns.

For more information, please contact us here or call us at (858) 248-8831 or (858) 248-8825 for a complimentary appointment. The meeting can be in our Rancho Bernardo office or one of us can meet with you at your home or office.