Monday mtb ft laud retirement 9 13 2010 (2)

transcript

Investment strategies for today’s retireesMark Burnam

Vice-President - Investment

Wells Fargo Advisors, LLC

September 13, 2010

About Wells Fargo & Company

Recognized for strength, integrity and client satisfaction since 1852

Ranked 14th on Fortune’s 2009 list of the “World’s Most Admired Companies”

Named five consecutive years on Barron’s “Top 25 Most Respected Public Companies”(2005-2009)

About Wells Fargo Advisors

Second-largest investment firm in the United States*

Represented by nearly 15,000 Financial Advisors in 5,000 U.S. locations

Emerged from Wells Fargo & Company’s acquisition of Wachovia Corporation

Predecessor brokerage firms include Wachovia Securities, LLC and A.G. Edwards & Sons, Inc.

* Based on number of Financial Advisors; data is a combination of Wells Fargo Advisors, LLC, Wells Fargo Investments, LLC, Wells Fargo Advisors Financial Network, LLC, First Clearing, LLC and H.D. Vest Investment Services. Data as of January 1, 2010.

Ft. Lauderdale’s defined-benefit plan = Income Ft. Lauderdale Police & Fire Pension or Ft. Lauderdale

General Employees Pension promises to pay your monthly or annual retirement benefits at retirement, based on a formula

The City and each respective plan bear the plan’s cost

You worked to build your portfolio. Now it’s time for your

portfolio to work for you.

Plan for retirement

Sources of Retirement Income:

Social Security

City Pension

DROP, 457, IRAs, 4041k, 403b, etc.

Investment portfolio(s)

Repositioning your retirement assets

Reposition when you: Approach retirement

Need to maintain and preserve your assets

Want moderate growth to fight inflation risk and keep purchasing power

How: Rebalance asset allocations

Take advantage of deferring tax on gains (no negative tax implications) versus nonretirement assets (tax implications)

Waiting for interest rates to climb back up?

Source: Federal Reserve Board/Haver Analytics.Note: Gray bars indicate recessions. % p.a. = percent per annum.

10-Year Treasury Note Yield at Constant Maturity

% p.a.

0500959085807570656055Source: Federal Reserve Board /Haver Analytics

10-Year Treasury Note Yield at Constant Maturity

% p.a.

055 60 65 70 75 80 85 90 95 00 05

Rank the following financial priorities for your retirement:

___ Never running out of money___ Leaving a legacy for

your children___ Living off the interest of your

investments and never touching the principal

___ Having money set aside for potential long-term care needs

___ Maintaining your standard of living

Rank the following financial priorities for your retirement:

___ Never running out of money___ Leaving a legacy for

your children___ Living off the interest of your

investments and never touching the principal

___ Having money set aside for potential long-term care needs

___ Maintaining your standard of living

Concerns for retirees

Not having enough money to last through your retirement years

A declining standard of living as costs rise

If prices were to rise at a rate of 3% each year, the cost of living would double in:____ 13 years____ 24 years____ 32 years

At 5% each year, it would take:____ 7 years____ 14 years____ 21 years

If prices were to rise at a rate of 3% each year, the cost of living would double in:____ 13 years____ 24 years____ 32 years

At 5% each year, it would take:____ 7 years____ 14 years____ 21 years

Mistake #1 – Forgetting about the effectsof inflationInflation’s powerful effects

If prices rise 4% annually:

$1.00 82¢ 66¢ 44¢

One dollar today Five years

from now10 yearsfrom now 20 years

from now

Source: Consumer Price Index

Relative worth

Mistake #7 – Underestimating the time you will spend in retirementAmericans are living longer

65 75 85 95

Source: IRS Publication 590 (2007). Individual Retirement Arrangements (IRAs)

Life expectancy (years)

Determine your retirement needs

Longer life expectancy

Source: Annuity 2000 Mortality Table, Society of Actuaries

8550% chance

8850% chance

9250% chance

of one survivor

9225% chance

9425% chance

9750% chance

of one survivor

Female

Couple

Probability of a 65-year-old in good health living to:

A declining standard of living as costs rise

The possibility of catastrophic medical or nursing home expenses

You worked to build your portfolio. Now it’s time for your

portfolio to work for you.

- 3.5%

- 1.8%

Invested for all5,044 trading days

10 best days missed

20 best days missed

30 best days missed

40 best days missed

50 best days missed

Mistake #5 – Having unrealistic investment expectationsMarket timing — The risk of missing major opportunitiesS&P 500 annualized returns, 1990-2009

Source: Morningstar, Inc. This hypothetical illustration is based on the Standard & Poor’s 500 Composite Index with dividends reinvested over the 20-year period of 1990 through 2009. You cannot invest directly in an index. This chart is for illustrative purposes only. Past performance is no guarantee of future results. This chart is not indicative of the performance of any specific investment.

Mistake #2 – Not having a proper asset allocation for your portfolio (cont.)

Past performance is no guarantee of future results. You cannot invest directly in an index.

Mistake #2 – Not having a proper asset allocation for your portfolio

Asset allocation…

Is the combination of asset classes in a portfolio and their proportion to one another

Builds a balanced portfolio with appropriate diversification across asset classes

Helps reduce the effects of market volatility

Can help you take advantage of your return potential

Asset allocation does not eliminate fluctuating prices or uncertain returns.

The balancing actUsing a portfolio approach to help reduce risk and increase income potential

Using a portfolio approach to help reduce risk and increase income potential

Asset Allocation: A practical perspective

Ron and Sharon

Early 50s

Considering early retirement

* This is a hypothetical sample asset allocation only. It does not represent any specific investments.Your asset allocation will vary based onyour specific investment objectives and tolerance for risk.Small- and mid-cap stocks tend to react with more volatility than large-cap stocks. Special risks are inherent to international investments, including social, political, economic and currency risks. Likewise there are special risks associated with an investment in real estate, including credit risk, interest rate fluctuations and the impact of varied economic conditions. Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns.

Growth and Income*

Average compounded annual return — 1926 to 2009

Historical performance of investments

Large-cap stock(S&P 500)

Long-term bonds(U.S. Govt.)

Treasury bills(90-day maturity)

Inflation rate(CPI)

Reduction of risk over time1926–2009

Past performance is no guarantee of future results. Each bar shows the range of compound annual returns for each asset class over the period 1926–2009. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index.©2010 Morningstar, Inc. All rights reserved. 3/1/2010

Small stocks Large stocks Government bonds Treasury bills

1-year

Holding period

5-year 20-year 1-year 5-year 20-year 1-year 5-year 20-year 1-year 5-year 20-year

Compound annual return:11.9% 9.8%

5.4% 3.7%

Hypothetical growth and income model investment mixGrowth of capital takes precedence over income

Cash alternative

Real estate

U.S. stocks

Non-U.S. stocks

Sample asset allocation only. An individual’s allocation will vary based on investment objectives and risk tolerances. There are special risks associated with an investment in real estate, including credit risk, interest rate fluctuations and the impact of varied economic conditions. Special risks are also inherent to international investments, including social, political, economic and currency risks. Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns.

Hypothetical income model investment mixPreservation of capital and current income have equal priority

Cash alternative

Real estate

U.S. stocks

Non-U.S. stocks

Sample asset allocation only. An individual’s allocation will vary based on investment objectives and risk tolerances. There are special risks associated with an investment in real estate, including credit risk, interest rate fluctuations and the impact of varied economic conditions. Special risks are also inherent to international investments, including social, political, economic and currency risks. Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns.

The value of asset allocation

Mistake #4 – Underestimating spending during retirement

Almost half (49%) of retirees in their first five years of retirement spend 100% or more of their preretirement income.

Source: Employee Benefit Research Institute retirement confidence survey, April 2009.

Strategies for fixed-income investing

There are many strategies to capitalize on values in the fixed-income markets.

Bond ladders are one simple strategy.

Bond yields and market value will fluctuate so that your investment, if sold prior to maturity, may be worth more or less than its original cost. Bond prices fluctuate inversely to changes in interest rates. Therefore, a general rise in interest rates can result in the decline of the value of your investment.

Bond ladders

A ladder is a portfolio of bonds with maturities spread across several years

Maturity Yield-to-Value Issuer Coupon Maturity Price Maturity Cost

$ 20,000 Bond A 3.40% Aug 2010 100.00 3.40% $ 20,00020,000 Bond B 3.60 Aug 2011 100.00 3.60 20,000 20,000 Bond C 3.65 Mar 2012 100.00 3.65 20,00020,000 Bond D 3.70 Mar 2013 100.00 3.70 20,00020,000 Bond E 3.75 Mar 2014 100.00 3.75 20,000

This example is for illustrative purposes only and does not reflect the actual performance of any actual investments.

$100,000 Average Yield-to-Maturity 3.62% $100,000

Bond yields and market value will fluctuate so that your investment, if sold prior to maturity, may be worth more or less than its original cost. Bond prices fluctuate inversely to changes in interest rates. Therefore, a general rise in interest rates can result in the decline of the value of your investment.

Ladder advantages

Simple, systematic approach that provides discipline to your investing.

As each bond matures, you get an opportunity to reinvest. If rates rise, you can reinvest some money at

higher rates.

If rates fall, some of your money remains locked in at higher rates.

Bond Yields and market value will fluctuate so that your investment, if sold prior to maturity, may be worth more or less than its original cost. Bond prices fluctuate inversely to changes in interest rates. Therefore, a general rise in interest rates can result in the decline of the value of your investment.

Mistake #8 – Mismanaging tax-deferred assets

Tapping into your tax-deferred investments at or before age 59½.

Spending from your tax-deferred investments first.

The nine big mistakes

7. Underestimating time spent in retirement

4. Underestimatingspending during retirement

9. Unexpected health-care expenses

1. Forgetting effects of inflation

3. Underestimating taxes

8. Mismanaging tax-deferred assets

6. Relying solely on investment returns

5. Unrealistic investment expectations

2. Improper assetallocation

Retirement planning

You should identify: What you have

What you need

How to get there

EnvisionSM

An Envision investment plan… Can help you work toward

your financial goals

Uses historical market data and statistical modeling

Is flexible

What can you do today?

Schedule an appointment to discuss your particular situation

Considerations: If you’re middle-aged, concentrate on stocks If you’re approaching retirement, shift to less volatile

investments If you’re retired, look at income-producing

investments

Investment and Insurance Products: NOT FDIC Insured NO Bank Guarantee MAY Lose Value

Wells Fargo Advisors is the trade name used by two separate, registered broker-dealers: Wells Fargo Advisors, LLC and Wells Fargo Advisors Financial Network, LLC, Members SIPC, non-bank affiliates of Wells Fargo & Company. Insurance products offered through our affiliated nonbank insurance agencies.

Seek the advice of tax and legal advisors

This presentation is designed to provide accurate and authoritative information regarding the subject matter covered. You should understand that Wells Fargo Advisors is not engaged in rendering legal, accounting or tax-preparation services. If tax or legal advice is required, you should seek the services of an appropriate, competent professional.

Wells Fargo Advisors’ view is that investment decisions should be based on investment merit, not solely on tax considerations. However, the effects of taxes are a critical factor in achieving a desired after-tax return on your investment. The information provided is based on internal and external sources that are considered reliable; however, the accuracy of the information is not guaranteed. You should direct specific questions on taxes as they relate to your situation to your tax advisor.

Please note: This material has been prepared for informational purposes only and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. The accuracy and completeness of this information is not guaranteed and is subject to change. Since each investor’s situation is unique you need to review your specific investment objectives, risk tolerance and liquidity needs with your financial professional(s) before a suitable investment strategy can be selected.

Past performance is no guarantee of future results.

S&P 500 Index: The S&P Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index, with each stock’s weight in the Index proportionate to its market value. The “500” is one of the most widely used benchmarks of U.S. equity performance.

Government bonds are represented by the 20-year U.S. government bond.

Inflation is measured by the Consumer Price Index for all urban consumers, not seasonally adjusted. Treasury bills and government bonds are guaranteed by the U.S. government and, if held to maturity, offer a fixed rate of return and fixed principal value. Yield and market value of bonds will fluctuate if sold prior to maturity.

Treasury bills are represented by 30-day U.S. Treasury bill.

The return of principal value of an investment in stocks fluctuates with changes in market conditions. The prices of small-cap stocks are generally more volatile than large-company stocks. Standard deviation indicates the volatility of an index. In general the higher the standard deviation, the greater the volatility.

Investing in fixed income securities involves certain risks such as market risk if sold prior to maturity and credit risk especially if investing in high yield bonds, which have lower ratings and are subject to greater volatility. All fixed income investments are subject to availability and change in price and may be worth less than original cost upon redemption or maturity. In addition to market risk, there are certain other risks associated with an investment in fixed income funds, such as default risk, the risk that the company issuing debt securities will be unable to repay principal and interest, and interest rate risk, the risk that the security may decrease in value if interest rates increase.

These charts are for illustrative purposes only. Figures do not reflect the effects of taxes or transaction costs.

This information is hypothetical and is provided for informational purposes only. It is not intended to represent any specific return, yield, or investment, nor is it indicative of future results.

Historical performance of investments

Average compounded annual return — 1926 to 2009

Monday mtb ft laud retirement 9 13 2010 (2)

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