How Advisors Are Paid

Not so long ago Financial Advisors were known as stockbrokers, and they were paid every time they brokered a deal: bought or sold stocks for their clients. While many financial products and services are still bought and sold with a commission, times are changing.

Throughout the financial world, the trend for compensation for Financial Advisors is toward asset-based fees. In a "fee-based" model, Financial Advisors receive a fee for portfolio planning and management (including most trading), based on a very small percentage of the assets that they manage for you. This model puts you and a Wachovia Securities Financial Advisor on the same team. The more assets you have, the more assets your financial advisor manages. Generally, fees as a percentage of assets go down as your assets under management increase.

Be sure to ask your Financial Advisor what type of compensation he or she receives from each product that interests you. You may find that products bought and sold with a straight commission to a Wachovia Securities Financial Advisor still make sense for all or some of your portfolio. At Wachovia Securities, our Financial Advisors will discuss how they get paid with you at any time.

Please note that fee-based accounts are not designed for excessively traded or inactive accounts and may not be suitable for all investors. Since no one manager is suitable for all types of investors, this information is provided for information purposes only. We need to review your investment objectives, risk tolerance and liquidity needs before we introduce suitable managers to you. Please carefully review the Wachovia Securities advisory disclosure document for a full description of our services. a minimum annual fee may apply for these programs.

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Wachovia Securities is the trade name used by three separate, registered broker-dealers and nonbank affiliates of Wachovia Corporation. Retail securities brokerage services offered through Wachovia Securities, LLC, Member NYSE/SIPC and Wachovia Securities Financial Network, LLC, Member FINRA/SIPC. Corporate and Investment Banking services offered through Wachovia Capital Markets, LLC, Member NYSE, FINRA, and SIPC. A.G. Edwards is a division of Wachovia Securities, Member SIPC.