InvestRight Principle #1: What Am I Investing For

InvestRight Principle #1

1. Know what you're investing for.

> Identify Your Goals

> Prioritize Your Goals

> Put a Date on Achieving Each Goal

> Portfolio Remodel

2. Make paying yourself a priority.

3. Make tax-smart investments.

4. Diversify your portfolio.

5. Choose good investments.

	Online Resources
	Need help organizing your goals? Complete our Goal Clarification Worksheet (pdf) to identify your goals and categorize them by timeframe.

Do you have several competing goals? Most people do. You may not be able to achieve them all right now, so one way to handle these often conflicting goals is to prioritize them. And of course, this may mean allocating your money across your goals. That way, you can emphasize which ones are most important to you as you move ahead in your life.

Prioritize the goals you listed in Question 1. Still not sure how to prioritize? Consider this approach. In the next diagram, we ranked goals based on necessity, starting at the bottom of the pyramid with immediate needs and working our way up. Chart Explanation

Next: When will I need the money?

Chart Explanation

Immediate needs. Do you have crucial emergency cash of three to six months of income put aside? If you don't have liquid cash available for an emergency, such as a job loss or major home repair, you may not be ready to lock up money for the long term.

Financial security. Do you want to buy a home? Are you on your way to creating a comfortable retirement? It's important to be honest with yourself. How much do you already have? How much will you need? You can't take out a loan for retirement, so this should be high on your list – especially now that pensions are becoming more scarce and the future of Social Security benefits is in question.

Helping others. Do you have children or grandchildren? You may want to give them a helping hand paying for their college education. Or perhaps you'd like to donate funds to a favorite charity.

Making dreams reality. Are there things you've always wanted to do? Of course there are. Whether it's putting money away for a once-in-a-lifetime vacation, a dream house on the coast, or owning a winery, everyone has a dream they want to make come true.

Back to Chart.

©2013 Wells Fargo Funds Management, LLC. All rights reserved. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Managed Account Services and Wells Fargo Advantage Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the funds. The funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA/SIPC, an affiliate of Wells Fargo & Company.

Not FDIC Insured
No Bank Guarantee
May Lose Value

Prospectus

Wells Fargo Advantage Funds

Individual Investors · 1-800-359-3379
Investment Professionals · 1-888-877-9275
Institutional Sales Professionals · 1-866-765-0778