Waddell & Reed, Inc. ("WRI") is dually registered as a broker-dealer and federally registered
investment advisor and may provide services to clients in one or both capacities. This report
is provided in WRI’s capacity as a registered investment advisor. Securities are offered
through WRI, a broker-dealer, member FINRA/SIPC.
The following report is a diagnostic tool intended to review your current financial situation and suggest potential planning ideas and concepts that may be of benefit to you. The purpose of the report is to illustrate how financial planning may assist you in meeting your stated goals and objectives. This information is prepared by an unrelated, independent third party, eMoney Advisor LLC (eMoney), and is provided for educational and informational purposes. WRI believes the information to be reliable, but does not guarantee the accuracy or completeness of the information provided and it has not been verified by WRI.
This report is based, in large part, upon information and assumptions provided by you (the client). The reports and graphs are dependent on the quality and accuracy of data provided. Any changes in, or inaccuracy of, the information provided to us may affect the information presented in this report. This report provides broad and general guidelines on the potential advantages of certain financial planning strategies and specific advice and/or recommendations may be included in the report, when provided by your advisor. We recommend that you review your plan annually with your advisor, unless changes in your personal or financial circumstances require more frequent reviews. If changes occur an amended or new plan may be considered. All reports should be reviewed in conjunction with the assumptions information and disclaimers.
WRI and its associated advisors do not provide tax or legal advice and nothing within the reports should be construed as tax or legal advice. You should consult your tax and/or legal advisors before implementing any transactions and/or strategies concerning your finances.
This report may not reflect all holdings or transactions, the costs of these holdings or transactions, or proceeds received by you from these holdings or transactions. It may contain information on assets that are not held at WRI. Assets not held at WRI will not be included on WRI’s books and records and full information regarding these assets held elsewhere may not be available except on statements directly from the institution holding those assets. Prices that may be indicated in this report are obtained from sources we consider reliable, but are not guaranteed. Past performance is no guarantee of future performance and it is important to realize that actual results may differ from the projections contained in this report. The presentation of investment returns set forth in this report may not reflect the deduction of any commissions or fees. Projected valuations and/or rates of return may not take into account surrender charges on products you might own. They will reflect any fees or product charges only when entered by the advisor. Deduction of such charges will result in a lower rate of return. It is very important to keep in mind that investment costs compound along with your investment returns. For example, a $100,000 investment earning 6% a year for the next 25 years would have an ending balance of about $338,000 if a 1% annual fee were charged. A 2% annual account fee, after 25 years would result in an ending balance of about $266,000. This hypothetical illustration does not represent any particular investment nor does it account for taxes or inflation. Numbers are rounded.
It is important to compare the information on this report with the statements you receive from the custodian(s) for your account(s). Please note that there may be minor variations due to calculation methodologies. If you have any questions, please contact your financial advisor. The information contained herein is not written or intended as tax or legal advice, and should not be relied upon in filing income tax returns or in making tax-related decisions. Tax laws, including tax rates, are amended from time-to-time and such amendments may affect the options and information presented in this report and the plan. The information provided herein may not be relied on for purposes of avoiding any federal tax penalties. You are encouraged to seek financial, tax and legal advice from your professional advisors regarding any legal, estate, or tax implications of the information presented in this report. WRI and associated advisors do not provide tax or legal advice. Tools such as the Monte Carlo simulation will yield different results depending on the variables entered, and the assumptions underlying the calculation. The assumptions with respect to the simulation include the assumed rates of return and standard deviations of the portfolio model associated with each asset. The assumed rates of return are based on the historical rates of returns and standard deviations, for certain periods of time, for the benchmark indexes comprising the asset classes in the model portfolio. Since the market data used to generate these rates of return change over time, your results will vary with each use over time.
Monte Carlo Analysis is a mathematical process used to implement complex statistical methods that chart the probability of certain financial outcomes at certain times in the future. This charting is accomplished by generating hundreds of possible economic scenarios that could affect the performance of your investments. The Monte Carlo simulation uses at most 1000 scenarios to determine the probability of outcomes resulting from the asset allocation choices and underlying assumptions regarding rates of return and volatility of certain asset classes. Some of these scenarios will assume very favorable financial market returns, consistent with some of the best periods in investing history for investors. Some scenarios will conform to the worst periods in investing history. Most scenarios will fall somewhere in between. The outcomes presented using the Monte Carlo simulation represent only a few of the many possible outcomes. Since past performance and market conditions may not be repeated in the future, your investment goals may not be fulfilled by following advice that is based on the projections. The return assumptions presented within Monte Carlo simulations are based solely on past performance and do not reflect the results of the actual trading of any actual account, group of accounts or model portfolio. Hypothetical results have inherent limitations because they do not reflect actual trading during the period described and may not reflect the impact that material economic and market factors might have been made if an advisor was actually managing clients’ money. Actual investment results will be different from the results portrayed in this report and they may be materially different for a variety of reasons, including but not limited to: fees, investment strategy decisions, timing, market conditions, investor imposed investment restrictions, timing, and investor initiated cash inflows and outflows related to an actual portfolio/investment account.
Waddell & Reed, Inc. (“WRI”) is a wholly owned subsidiary of Waddell & Reed Financial, Inc., a publicly held company (NYSE: WDR) which provides investment offerings, including: