Introducing the Envision process

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2 Will you have enough? Using your prioritized goals and additional information you discuss with your Financial Advisor, the Envision process uses sophisticated statistical modeling to determine how well you re working toward achieving your goals. For example, if you re 50 years old, have $750,000 in retirement savings, save $1,000 each month for retirement, invest primarily in stocks, and want to have $1.5 million at age 65, the Envision tool will help you gauge whether you re on target to reach your objectives at any point in time. In addition, the Envision process gives you and your Financial Advisor the flexibility to adjust your profile to account for any life changes, such as: Increasing medical costs Getting married or divorced Helping a child or grandchild afford higher education Caring for an elderly parent Starting a second career Inheriting money or other assets When things change, simply contact your Financial Advisor to ensure your Envision profile keeps pace with your life. The Envision process also lets you try on new goals or ideas. For example, if you re thinking about retiring early or starting a business, the Envision tool can tell you how adding a goal could affect your ability to reach your objectives. You can even run several scenarios and see which outcome best meets your plans. Start living the life you want tomorrow, today. 2

3 Bringing new simplicity to pursuing your life goals The Envision process helps you and your Financial Advisor address critical questions, such as: Are you compromising your goals too much with your investment choices? Are you taking too much financial risk or not enough? Do your goals need adjusting, or do you need to allow more time for achieving them? Are you going to be okay? Based on your goals, priorities, investments and risk tolerance, the Envision process helps you and your Financial Advisor respond to these questions and move confidently toward your goals. 3

4 Clarifying your goals The Envision process begins with a conversation between you and your Financial Advisor. The discussion is designed to help you, and your spouse or partner, clarify your financial goals and prioritize your objectives using our unique Envision Priority Cards. The information you provide to your advisor is used to develop an ideal investment plan. You ll also be asked to identify suitable adjustments to allow for the development of an alternative, acceptable investment plan. These two benchmarks provide the framework for the design of your recommended investment plan. Your Envision profile also includes your assets, liabilities, income needs, retirement lifestyle priorities and asset allocation goals. This allows your advisor to help you strategically allocate your portfolio based on your defined investment objectives. Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns. Envision Retirement Age Retirement Income Dreams and Major Purchases Estate and Legacy Education Goals Philanthropy Business Transition & Succession?? Outliving Your Assets Market Decline Risk Tolerance Increasing Medical Costs Taxes and Inflation Supporting Parents and/or Adult Children Today vs. Tomorrow 4

5 Your personal benchmark: the dot The centerpiece of your Envision investment plan is a personalized benchmark called the dot. Instead of tracking your portfolio s performance against a major standardized index, such as the S&P 500, your Financial Advisor uses the dot to monitor your progress toward achieving your life goals. While tracking an index lets you gauge market trends and relative performance, what s more important is how well your investments are helping you work toward achieving your unique personal goals. Your Financial Advisor can update you on your dot s progress as frequently as you want weekly, monthly or annually. The Envision process also offers you the flexibility to adjust your priorities, when necessary, based on fluctuating market conditions or life-changing events. 5

6 Envision methodology: Based on accepted statistical methods, the Envision tool uses a simulation model to test your Ideal, Acceptable and Recommended Investment Plans. The simulation model uses assumptions about inflation, financial market returns and the relationships among these variables. These assumptions were derived from analysis of historical data. Using Monte Carlo simulations, the Envision tool simulates 1,000 different potential outcomes over a lifetime of investing varying historical risk, return and correlation amongst the assets. Some of these scenarios will assume strong financial market returns, similar to the best periods in history for investors. Others will be similar to the worst periods in investing history. Most scenarios will fall somewhere in between. Elements of this report s presentations and simulation results are under license from Financeware, Inc Finaceware, Inc. U.S. Patents 7,562,040, 7,650,303, and 7,765,138. Other U.S. and international patents pending. All Rights Reserved. Financeware, Inc. is a separate entity and is not directly affiliated with Wells Fargo Advisors, LLC Investment and Insurance Products: u NOT FDIC Insured u NO Bank Guarantee u 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 Wells Fargo Advisors, LLC. [72262-v3]

7 Investment process New Goals or Priorities Define Major Life Goals A well-thought-out investment plan should serve as the foundation of our long-term relationship. Using Envision technology, skills developed in the business in our years of combined experience, and advanced technology tools, we will analyze your current financial situation and goals. Using our broad knowledge of securities markets, we will offer objective advice on investment choices and strategies to ensure that they fit with your unique situation. Understand Your Goals We conduct a personal interview with you to obtain the background information needed in order to complete your custom Envision plan. If appropriate, we also consult with other professional advisors, including your attorney and tax advisor, to understand all pertinent details of your financial circumstances. Stress Test Goals and Develop an In-Balance Recommendation To make sure we have a shared vision of your dreams, we stresstest your goals and make a recommendation presented in an easy-to-understand report. This ensures that the proposed strategy reflects your financial objectives and priorities in coordination with your life stage and dynamics in the marketplace. Once this is done, we will review specific investment recommendations for your approval. When considering investment vehicles, we consider their individual performance and how they perform with other investments. Implement Allocation With your confirmation, we will execute the investment recommendations based on your approved plan. Monitor Progress Implement Allocation Recommendation In Balance Targeted Confidence The Envisionn Process Ideal & Acceptable Goals Prioritize Goals Stress Test Goals Monitor Progress Like all goals, investment plans require ongoing maintenance to ensure optimal performance and achievement. Your plan will be monitored regularly, and the allocations within your portfolio will be rebalanced as necessary based on changes in the markets and your life. Once your plan is in place, you will receive monthly statements on your portfolio, plus an annual tax summary that lists all your securities transactions, interest and dividend income and other reportable tax transactions for the year. IMPORTANT: The projections or other information generated by the Envision tool regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees future results. Results may vary with each use and over time. 7