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Your Role
As our valued partner, we rely on your contribution to make this Financial Planning engagement a success. The quality of our analysis and recommendations depends in large degree on the accuracy, timeliness, and completeness of the financial data that you provide. We rely on you for that data. We also rely on you to secure cooperation of your other professional advisors in the planning process. We provide professional guidance, but ultimately you determine the implementation of that guidance. You may choose any of the strategies we recommend, or you can select other strategies. As the authority for implementation and execution is solely yours, you also may decide to implement some or all strategies with Truist or with any other provider whom you choose.
Financial Planning Services Terms and Conditions
Truist Wealth offers Financial Planning services upon the following terms and conditions. Your acceptance of our Financial Planning services will evidence and constitute your acceptance of our terms and conditions.
Financial Planning reports and services are offered to Truist Wealth clients upon request and do not constitute an ongoing financial planning service. The assets, liabilities, goals, objectives, priorities, concerns, tolerance for risk, and other preferences (Financial Information) you or your designated agent provide us forms the basis for your Financial Plan.
Your Financial Plan and any investment recommendations or advice provided by Truist Wealth are based upon your Financial Information communicated to us at the time your Financial Plan is prepared and current market conditions. Your Financial Plan will not be updated to incorporate changes in such factors, or other relevant factors, unless you request an updated Financial Plan. Truist Wealth does not provide legal or tax advice. You should consult with your legal and tax advisors prior to making any investment decisions.
Performance returns shown in your Financial Plan are hypothetical, based on investment and planning assumptions and historic economic and market conditions. Hypothetical performance is for illustrative purposes only and is not a guarantee of future results. Past performance is no guarantee of future performance. Actual performance returns will vary.
Financial Planning and other Products and Services are offered by the following affiliates of Truist Financial Corporation
Services provided by the following affiliates of Truist Financial Corporation (Truist): Banking products and services, including loans and deposit accounts, are provided by Truist Bank, Member FDIC. Trust and investment management services are provided by Truist Bank. Securities, brokerage accounts and/or annuities are offered by Truist Investment Services, Inc., which is an SEC registered broker-dealer, member FINRA, SIPC, and a licensed insurance agency. Investment advisory services are offered by Truist Advisory Services, Inc., and GFO Advisory Services, LLC, both SEC registered investment advisers. Some insurance products offered by Truist Investment Services, Inc. Other insurance products are offered by third party insurance agencies unaffiliated with Truist Financial Corporation or any of its subsidiaries.
Truist Representatives
During the financial planning process, you may have the opportunity to work with one or more Truist Wealth affiliates, representatives, or members of their respective teams including Truist Investment Services, Inc., Truist Advisory Services, Inc., and Truist Bank. These Truist Wealth affiliates and their teammates individually or as a team will: work with you to gather and organize the data necessary to assess your current financial situation; employ a variety of tools to help you identify and clarify your financial goals; review assumptions with you that will help develop solutions; analyze data you provide in comparison with your goals; and when pertinent, outline alternative strategies available to execute on your objectives. We help you select strategies and craft an implementation plan and make appropriate connections across Truist to put your implementation plan into action.
Information Sharing
Truist Wealth affiliates work together to help find solutions for each client’s Financial Planning goals. Truist Wealth has adopted a Privacy Policy which, unless you direct us otherwise, allows its affiliates to share information you provide to Truist in connection with developing your Financial Plan. A copy of Truist Wealth’s Privacy Policy may be obtained from your account representative or may be reviewed at www.truist.com/privacy.
Reliability of Analysis and Report
This financial analysis report (Report) is a snapshot which compares your investments and savings strategy with your financial priorities and concerns. It provides only a broad, general guideline which may be helpful in shaping your financial thinking about investment objectives and risk management.
In order to prepare a thorough analysis that completely addresses your needs, your Truist Bank (TB) or Truist Advisory Services, Inc. (TAS) representative will seek to gather a wide variety of personal information from you, such as details about your assets, debts and family relationships. The usefulness of the Report is dependent upon the quality and accuracy of the information you have given us.
The calculations illustrating tax concepts and deductions, and investment gains and losses are estimates only. This analysis is a series of general estimates which are based upon the underlying information now available. That information may change over time, and the analysis would need to be updated to reflect those changes for the analysis to be useful.
The assumptions regarding investment returns and payment streams used in the Report are hypothetical and there can be no guarantee that they will be achieved. Actual results may vary substantially from the figures shown.
No Legal or Accounting Advice is being rendered in this Report
No legal or tax or accounting advice is being rendered in this Report or through any other oral or written communication from TB or TAS personnel. Comments regarding tax implications are informational only. Truist and its representatives do not provide tax or legal advice. You should consult your individual tax or legal professional before taking any action that may have tax or legal consequences.
Information Sharing
Investment Advisory services provided are offered by Truist Advisory Services, Inc. (“TAS”) a SEC registered investment adviser.
It is necessary that TAS receive your permission before sharing your information among its affiliates. By providing personal information to your TAS representative, you give TAS permission to share this information with our affiliates for the purpose of developing your plan.
Truist Bank (“TB") and TAS associates work together in teams to help find solutions for each client’s financial goals. Information gathered and Reports created are shared among the team members from both entities. Some bank advisors may also be investment representatives of TAS. In their capacity as bank advisors they are not offering the financial plan, report or any of the recommendations contained therein through TAS. These bank advisors may refer clients to TAS and may be part of the overall client team.
Truist Financial Corporation (“Truist”) has a number of affiliated companies that provide various products and services such as securities, insurance, mortgage loans, trust and banking services. The financial planning analysis process may involve sharing the information you provide and other information Truist maintains about you among these affiliates in order to provide a recommendation of appropriate products and services.
Implementing a Financial Plan
During the course of planning, strategies may be proposed that include acquisition of securities, insurance and other financial products.
You shall make and shall be solely responsible for any and all decisions as to whether to follow or disregard, wholly or partially, any information provided in the Report. You are free to select any investment advisory firm, broker/dealer or insurance agency for implementation of advice or recommendations provided in the Report or by TB or TAS advisors.
Should you decide to implement any planning option through Truist Investment Services, Inc.(“TIS”), you understand that TIS is a registered broker-dealer, and an insurance agency and that certain Investment Adviser Representatives ('IARs') of TAS are registered as securities representatives for TIS and may also be licensed insurance agents of TIS. You further acknowledge that, in those capacities, TIS and its registered representatives who are also TAS IARs may receive commissions and other remuneration resulting from your transactions effected through TIS. You understand that the IAR who prepared your Report may receive compensation for products sold by TIS to you based on the advice presented with the analysis. You also understand that a conflict of interest may exist when TAS receives a fee for rendering investment advice and its IARs receive a commission for effecting securities and/or insurance transactions relating to its advice given. In particular, you understand and agree that TAS may make investment recommendations to you with respect to the purchase and sale of securities issues by investment companies or other investment products for which TIS or its affiliates provide services and that TIS or its affiliates receive fees for such services, which fees are in addition to the compensation you pay TAS for TAS’ services for this analysis. You further understand that the investments, insurance and advisory services recommended by TAS may be available from other firms at higher or lower charges.
Services provided by the following affiliates of Truist Financial Corporation (Truist): Banking products and services, including loans and deposit accounts, are provided by Truist Bank, Member FDIC. Trust and investment management services are provided by Truist Bank. Securities, brokerage accounts and/or annuities are offered by Truist Investment Services, Inc., which is an SEC registered broker-dealer, member FINRA, SIPC, and a licensed insurance agency. Investment advisory services are offered by Truist Advisory Services, Inc., and GFO Advisory Services, LLC, both SEC registered investment advisers. Some insurance products offered by Truist Investment Services, Inc. Other insurance products are offered by third party insurance agencies unaffiliated with Truist Financial Corporation or any of its subsidiaries.
THIS REPORT AND ANY RELATED PLAN SHOULD NOT BE CONSTRUED AS A RECOMMENDATION TO ENGAGE IN ANY TRANSACTION. MUTUAL FUNDS, EXCHANGE TRADED FUNDS, UNIT INVESTMENT TRUSTS, VARIABLE ANNUITIES AND VARIABLE LIFE POLICIES ARE SOLD BY PROSPECTUS ONLY. FOR COMPLETE INFORMATION INCLUDING CHARGES AND EXPENSES, PLEASE CONTACT YOUR INVESTMENT ADVISER REPRESENTATIVE OR CLIENT ADVISOR TO OBTAIN A PROSPECTUS. PLEASE READ IT CAREFULLY BEFORE INVESTING OR SENDING MONEY. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT SHARES, WHEN SOLD OR REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST.
Additional Disclosure Regarding Termination of Advisory Relationship and Brokerage Services
TAS reviews your personal financial and tax situation, investment goals and risk tolerance to prepare and deliver a Report and related financial planning and analysis along with any related financial planning information. Once TAS discusses the Report with you, all investment advisory services cease. After plan delivery, TAS no longer has an investment advisory relationship with you and TAS is not acting as your fiduciary unless you execute an investment advisory agreement with TAS to manage your assets. Please feel free to discuss any questions about this Report, financial planning and the difference between investment advisory and brokerage services, including the extent of TAS’ obligations to disclose conflicts of interest and to act in your best interest, and your rights and TAS’ obligations to you with your investment professional.
Conflicts of Interest
You understand that TB and TAS perform, among other things, investment advisory services for other clients. You recognize that TB and TAS may give advice and take action in the performance of their duties for such other clients which may differ from advice given in this Report, or in the timing and nature of action taken with respect to you.
For any security either shown or used in implementing any planning option, TB, TAS, or our affiliated broker-dealer, may trade such security for our own accounts, make or maintain a market in such security, have an investment banking relationship with the underlying firm and/or provide research on the security, either in-house or through a third party. Our affiliated investment advisers may trade such security for their own accounts or the accounts of their advisory clients. If such relationships do not currently exist at the time of your investment, TAS or our affiliates may initiate any of the above relationships without notification.
Capital Markets Assumptions
The TAS Investment Advisory Group’s (“IAG”) Capital Markets Assumptions are utilized. IAG reviews forward looking capital markets assumptions annually or when market conditions warrant a change. IAG also routinely monitors the investment landscape to evaluate the consistency of the assumptions.
IAG’s capital markets assumptions provide a reasonable estimate of the geometric return, risk and correlations of major asset classes over a ten year forward period. These statistics are designed for the construction of tactical and strategic investment portfolios and longer-term financial plans. Asset classes are represented by the most appropriate indices that display the general characteristics of the asset class and where data is available for analyses.
To create its capital markets assumptions, IAG begins with the assumption that economic cycles range from four to five years in duration; therefore, assumptions will generally include two full cycles including slowdowns and expansions. A building block approach is used to construct asset class returns, and IAG relies on regression analysis to determine the factors that explain the returns for alternative strategies.
IAG’s outlook is shaped by current rates of global economic growth, interest rates, price stability and risk conditions. IAG then combines fundamental insight with quantitative research and the analysis of long-term trends to determine forward looking projections for asset class returns.
IAG leverages internal and third-party research resources as appropriate.
Additional Important Disclosures
Past performance does not guarantee future results. The projections or other information generated by this report regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not performance guarantees. Any results based upon implementing the suggestions in this Report may vary with each use and over time from any hypothetical projection or suggestion shown. Model results do not represent actual trading and may not reflect the impact that material economic and market factors might have had on our decision-making if we were actually managing your money. Any income tax estimates are made for the current year only and may not consider the possible effects of the Alternative Minimum Income Tax, any unforeseeable future tax law changes or changes in your financial profile that cannot be reasonably anticipated.
Projections, forecasts and estimates contained in this Report are not purely historical in nature but are forward-looking statements and are based upon information and assumptions that we consider reasonable, subject to uncertainties as to circumstances and events that have not yet taken place, and are subject to material variation. Projections are necessarily speculative in nature, and it can be expected that some or all of the assumptions underlying the projections will not materialize or will vary significantly from actual results. Accordingly, the projections are only an estimate and there can be no assurance that any projected or forecasted results will be attained. Actual results may vary from the projections, and the variations may be material. Some important factors that could cause actual results to differ materially from those in any forward-looking statements include, but are not limited to, changes in interest rates or currency exchange rates, market, financial or legal uncertainties, asset liquidity, the price at which the assets are actually purchased, any defaults of assets purchased, the timing of any such defaults and subsequent recoveries, the timing of asset acquisitions and differences in the actual allocation of your assets among asset categories from those assumed in any projections, forecasts and estimates contained in this Report.
Gross vs. Net Performance: All returns appearing in this Report reflect reinvestment of dividends and capital gains, but show only gross performance, with no deduction of advisory fees, brokerage or other commissions, or any other expenses that would accompany the purchase or sale of any of the classes of investments described in this Report. The returns would be lower if advisory fees and other expenses were deducted. Should you choose to engage TAS as your investment adviser, our advisory fees are described in Part II of TAS’s Form ADV.
Performance results are based on mathematical models that use inputs to calculate results. As with all models, results may vary significantly depending upon the value of the inputs given. Models used in any analysis may be proprietary, making the results difficult for any third party to reproduce. Explanations of any modeling techniques employed may be provided upon request.
If your report includes a Monte Carlo Simulation, please review these important disclosures regarding Monte Carlo Simulations
About Monte Carlo
Monte Carlo Simulation is a risk and decision analysis technique used to evaluate the outcome of portfolios over time using a large number of simulated variables to generate possible future returns.
There are many variables that can affect a financial plan. Two of the most volatile variables are inflation and investment returns, both of which, historically, vary on a daily basis. Even with this knowledge, most financial projections use constant inflation and investment rates over the period of the analysis. The use of these averages is used as a start for the planning process, since the actual values are unknown. Unfortunately, however, this type of analysis illustrates only one outcome, thereby requiring that simulation be used to imitate real-life situations. In order to produce meaningful results, these simulations are processed many times. By varying the rates of return and inflation to simulate the fluctuations that can be experienced in the marketplace, a more realistic reflection of the anticipated ups and downs of the investment environment is presented.
In order to create a Monte Carlo simulation model, historical performance of the securities market must be analyzed. This analysis does not utilize historical data for any specific securities. Rather, it uses the historical data for broad asset classes, such as “Small Cap. Equities” and “Long Term Bonds.” This analysis takes into account not only the historical values of various investment factors (prices, inflation, etc.), but also the interrelation of these values and the correlation between investment periods. The econometric modeling method is used to generate the capital market data used in the simulations. This involves modeling the movements of yields through time and then layering on various equity risk information to derive stock returns. This results in many economies being simulated for a given time period.
These multiple simulations produce a range of results. These results are then analyzed and probabilities are associated with the outcome. Due to the random nature in which the simulations are generated and the regular updating of historical asset class data, the results may vary with each use and over time, even if the underlying assumptions are not changed.
Important: The projections or other information generated by Monte Carlo Simulations regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. An investment cannot be made directly into a Monte Carlo Simulation. There are limitations in using a Monte Carlo simulation, including the analysis is only as good as the assumptions, and despite modeling for a range of uncertainties in the future, it does not eliminate uncertainty.
The results can be presented various ways, but the ultimate goal of a Monte Carlo Simulation is to educate and communicate about the uncertainty of the future, so you can make educated decisions about your specific situations.