The Joy of Income

Retirement should be a time of joy and happiness. For many, this starts with figuring out how to generate income once they stop working. Here’s an idea to consider. Use any income distributions to help with monthly living expenses while reinvesting all capital gains.

Franklin Income Fund— Class A (FKIQX) has paid uninterrupted dividends for 70 years, while also paying annual capital gains 80% of the time.1 Here’s how it would’ve worked for someone retiring about 15 years ago on December 31, 2002:2

For a retire
making

initial investment
in September 30, 2002

Generated an
average income

of
$3,306

After 15 years
Ending September 30, 2017

a total of
$595,151
from monthly income

+

a capital of
$664,397
from reinvestments


Click the envelopes below to see the income generated each month by this scenario.

THE ENVELOPE, PLEASE...

Income Distributions of a $500,000 Investment in Franklin Income Fund─Class A (Without Sales Charge)
15-Year Period Ended December 31, 2017

Reveal all

 JanFebMarAprMayJunJulAugSeptOctNovDec
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017

 


If the sales charge had been included, the return would have been lower.

Dividends will vary depending on the fund's income, and past distributions are not indicative of future trends.

Performance data represents past performance, which does not guarantee future results. Current performance may differ from the figures shown. A fund’s investment return and principal value will change with market conditions, and investors may have a gain or a loss when they sell their shares. Please view Franklin Income Fund’s most recent month-end performance.

The hypothetical scenario does not take into account federal, state or municipal taxes. If taxes were taken into account, the hypothetical values shown would have been lower.

Franklin Income Fund

Franklin Income Fund seeks to maximize income, while maintaining prospects for capital appreciation over the long term by:

Seeking undervalued securities unconstrained by asset classes or market cycles

Pursuing income across the capital structure of a company using stocks, convertible securities and bonds

Adjusting fund allocations without set proportions based on current market opportunities

Average Annual Total Returns (For Periods Ended September 30, 2018)

1-year3-year5-year10-yearSince Inception
(8/31/48)
Advisor Class (FRIAX)3 2.34% 9.06% 5.42% 8.20% 10.18%
Class A (FKIQX)1          
Without Sales Charge 2.17% 9.00% 5.23% 8.03% 10.09%
With 4.25% Initial Sales Charge -2.17% 7.43% 4.32% 7.56% 10.02%
Total Annual Operating Expenses4
Without WaiverWith Waiver
Advisor Class 0.48% 0.47%
Class A 0.73% 0.72%
30-Day Standardized Yield As of September 30, 20184,5Without WaiverWith Waiver
Advisor Class 4.02% 4.02%
Class A6 -- --

Performance data represents past performance, which does not guarantee future results. Current performance may differ from the figures shown. A fund’s investment return and principal value will change with market conditions, and investors may have a gain or a loss when they sell their shares. Please view Franklin Income Fund’s most recent month-end performance.

Advisor Class shares do not have sales charges or Rule 12b‐1 fees and are offered only to certain eligible investors as stated in the prospectus. The fund offers other share classes, subject to different fees and expenses that will affect their performance. Please see the fund’s prospectus for more information about fees and expenses.