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. The purpose of the report is to illustrate how accepted financial and estate planning principles may improve your current situation. This information is prepared by an unrelated, independent third party, eMoney Advisor LLC, and is provided for informational purposes only. Waddell & Reed, Inc., believes the information to be reliable, but does not guarantee the accuracy or completeness of the information provided. This report is based upon information and assumptions provided by you (the client). The reports and graphs are dependent on the quality and accuracy of data furnished by you or by your advisor. Any changes in, or inaccuracy of, the information you have provided to us may affect the information presented in this report. This report provides broad and general guidelines on the advantages of certain financial planning concepts and does not constitute a recommendation of any particular technique. The consolidated report is provided for informational purposes as a courtesy to you. We recommend that you review your plan annually, unless changes in your personal or financial circumstances require more frequent review. All reports should be reviewed in conjunction with your fact summary and this Disclaimer page.
The term 'plan' or 'planning,' when used within this report does not imply that a recommendation has been made to implement one or more financial plans or make a particular investment. Nor does the plan or report provide legal, accounting, financial, tax or other advice. Rather, the report and the illustrations therein provide a summary of certain potential financial strategies. The reports provide projections based on various assumptions and are therefore hypothetical in nature and not guarantees of investment returns. You should consult your tax and/or legal advisors before implementing any transactions and/or strategies concerning your finances.
Additionally, 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 the broker/dealer with whom your financial advisor is registered. As such, those assets will not be included on the broker/dealer’s books and records and full information regarding these assets 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 does 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 when entered by the advisor. Deduction of such charges will result in a lower rate of return.
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 representative. Also, your account(s) may not be covered by FDIC or SIPC. FDIC and SIPC coverages apply only to certain assets and may be subject to limitations. Questions about coverage that may apply should be directed to the asset provider or sponsor.
The information contained in this report is not written or intended as financial, 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. 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. In providing this report, Waddell & Reed is not providing estate planning advice. Should you need estate planning advice you should seek that from an attorney.
Tools such as the Monte Carlo simulation will yield different results depending on the variables inputted, and the assumptions underlying the calculation. For those reports that perform a Monte Carlo analysis, the term 'Monte Carlo' will be included in the report title. 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.
Securities products and investment advisory services are made available through Waddell & Reed, Inc., in its capacity as a broker-dealer and federally registered investment adviser. Member FINRA/SIPC.
Waddell & Reed, Inc. sells shares of registered investment companies for which it, or one of its affiliates, serves as principal underwriter or distributor, or for which one of its affiliates serves as investment advisor or subadvisor, and shares of registered investment companies that serve as the investment portfolios underlying certain variable products offered by unaffiliated insurance companies.
Waddell & Reed, Inc. acts as a broker for, and provides financial planning advice to individuals, as well as to pension and profit sharing plans, trusts, estates, corporations, and other business entities. In connection with its activities as a broker-dealer, Waddell & Reed, Inc., may advise clients to purchase mutual funds that it, and certain affiliates, manufacture and distribute. Waddell & Reed, Inc., receives commissions in connection with the purchase (or contingent deferred sales charges in connection with the redemption) of these mutual funds and ongoing distribution and service fees under SEC Rule 12b-1. In connection with its activities as an investment advisor, Waddell & Reed, Inc., will receive fees for certain financial planning and investment advisory services it provides as an investment advisor. Waddell & Reed, Inc., may also provide certain basic investment advisory services incidental to its broker-dealer activities.
Waddell & Reed financial advisors receive commissions from the sale of specific investment and insurance products that may be recommended to you as part of your financial plan, including mutual funds and variable insurance products manufactured and distributed by Waddell & Reed, Inc., and its affiliates. The prospectus for each recommended investment product and the policy for each recommended insurance product sets forth the applicable risks, expenses, charges, fees, and other information. Please read the documents carefully before making your purchase. Please remember that you are under no obligation to act on any recommendation set forth in this financial analysis.
For a full description of investment advisory services, including fees and expenses, review the applicable advisory services brochure provided by your Waddell & Reed financial advisor. Investment return and principal value will fluctuate, and it is possible to lose money by investing. Investing in securities is subject to a number of risks and not all products are suitable for all investors. Investors should carefully consider their investment objectives, risk tolerance, financial situation, and other information before investing. Waddell & Reed, Inc., does not offer tax or legal advice. Please contact your tax and legal advisor about your particular situation.