CASH FLOW INCOME REPLACEMENT

“Where will I get my income from once I no longer receive a paycheck?”

At the Thode Investment Consulting Group, we strive to answer that question clearly, using key principles to instill a sense of confidence.

Investments Must Tie to the Plan

We design investment allocations based on the appropriate amount of income required from the portfolio now and in future years, tax implications and most importantly, risk parameters.

Determine the Proper Mix Between Stocks and Fixed Income Investments

It’s important to understand where interest rates are and where they may be heading in order to make informed and intelligent decisions regarding fixed income allocations. Depending on the tax status of an account and a client’s tax implications, municipal bonds may play an integral role.

Reviewing and Evaluating Distributions

This is part of our “checks and balances” to make sure your plan’s projections are based on the reality of your life. Through the evaluation of cash flows, we strive to deal with any potential problems before they become too big to solve.

The Smart Money Concept

When issues arise in the markets and/or when you need cash flow, we make sure there’s always a smart place to get it: from cash reserves rather than a declining market. The Smart Money Concept is about planning and preparing for life’s uncertainties, so you continue to confidently move forward.

Wells Fargo Advisors is not a legal or tax advisor.

Investments in fixed-income securities are subject to market, interest rate, credit and other risks. Bond prices fluctuate inversely to changes in interest rates. Therefore, a general rise in interest rates can result in the decline in the bond’s price. Credit risk is the risk that an issuer will default on payments of interest and/or principal. This risk is heightened in lower rated bonds. If sold prior to maturity, fixed income securities are subject to market risk. All fixed income investments may be worth less than their original cost upon redemption or maturity.

Income from municipal securities is generally free from federal taxes and state taxes for residents of the issuing state. While the interest income is tax-free, capital gains, if any, will be subject to taxes. Income for some investors may be subject to the federal Alternative Minimum Tax (AMT).