Lifestyle Ready Strategy

Translating savings into a regular “paycheck” in retirement can feel challenging. The challenge is making sure your clients’ distribution plan provides them with the retirement income that helps them achieve their goals and address their concerns while lasting as long as they do. Work with your clients to determine their individual needs and develop a written plan to address them.

The Income for What’s Next®: Lifestyle-Ready Strategy has a relatively higher level of risk in seeking to support potentially rising discretionary income needs. The strategy is comprised of a 30% allocation each to the Franklin Rising Dividends Fund, Franklin Mutual Global Discovery Fund, Franklin Total Return Fund and 10% to the Templeton Global Bond Fund. The hypothetical illustrations below show how this investment strategy and the use of systematic withdrawals may fit as part of a well-diversified retirement income investment portfolio.

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HYPOTHETICAL ILLUSTRATIONS: 18 YEARS OF SYSTEMATIC AND INCREASING WITHDRAWALS1

January 1, 2000–December 31, 2017

$100,000 Initial Investment (Advisor Class/ Class Z), $5,000 First-Year Withdrawal Amount (5% of Initial Investment), 3% Annual Increase in Withdrawal Amount, Reinvest Dividends and Capital Gains

 

SUMMARY ILLUSTRATION BASED ON SYSTEMATIC WITHDRAWALS

$117,074
Total Withdrawals
Based on 18 years of systematic and increasing withdrawals

Summary Chart

HYPOTHETICAL ACCOUNT VALUE AFTER $117,074 OF WITHDRAWALS

$160,288
Ending Portfolio Value - Advisor Class/Class Z

$48,454 
Ending Blended Benchmark Value2

Hypothetical Account Value Chart

AVERAGE ANNUAL TOTAL RETURNS3

Periods ended March 31, 2018

Funds are available in additional share classes which may have different fees.

 Franklin Rising Dividends Fund - Advisor Class (FRDAX)4Franklin Mutual Global Discovery Fund - Advisor Class (MDISX)Franklin Total Return Fund - Advisor Class (FBDAX)Templeton Global Bond Fund - Advisor Class (TGBAX)9
 Class A PerformanceClass A PerformanceClass A PerformanceClass A Performance
Fund Description The fund seeks long-term capital appreciation by investing at least 80% of its net assets in companies of any size that have paid consistently rising dividends. The fund seeks capital appreciation. Its strategy is focused on undervalued mid- and large-cap equity securities, with a significant portion of its assets in foreign securities and, to a lesser extent, distressed securities and merger arbitrage. The fund seeks to provide high current income consistent with preservation of capital.  Capital appreciation over the long-term is a secondary goal.  The fund currently invests at least 80% of its assets in investment grade debt securities, which may be represented by derivatives that provide exposure to debt securities. The fund focuses on government and corporate debt securities and mortgage- and asset-backed securities.7

The fund seeks current income with capital appreciation and growth of income, by investing at least 80% of its net assets in bonds of governments, government related entities and government agencies located around the world. The fund regularly enters into various currency-related and other transactions involving derivative instruments.

Inception Date 1/14/87 12/31/92 8/3/98 9/18/86
1-Year 12.22% 2.36% 0.89% -0.60%
3-Year 9.17% 4.15% 0.73% 2.02%
5-Year 10.80% 7.35% 1.73% 1.82%
10-Year 8.96% 6.23% 4.25% 5.40%
Since Inception 9.45% 11.37% 5.04% 7.52%
Expense Ratio 0.65% 0.99% Without Waiver8 0.68%
With Waiver 0.65%
Without Waiver10 0.74%
With Waiver 0.68%
30-Day Standardized Yield–Class A5
As of 04/30/18
N/A N/A Without Waiver 3.29%
With Waiver 3.32%
Without Waiver 4.50%
With Waiver 4.57%
Beta (3-Year)–Class A6
As of 03/31/18
0.94 0.86 - -

WHAT ARE THE RISKS?

Franklin Rising Dividends Fund
Performance Prospectus

All investments involve risks, including possible loss of principal. Value securities may not increase in price as anticipated or may decline further in value. For stocks paying dividends, dividends are not guaranteed, and can increase, decrease or be totally eliminated without notice. While smaller and midsize companies may offer substantial opportunities for capital growth, they also involve heightened risks and should be considered speculative. Historically, smaller- and midsize-company securities have been more volatile in price than larger company securities, especially over the short term. These and other risks are detailed in the fund’s prospectus.

Franklin Mutual Global Discovery Fund
Performance Prospectus

All investments involve risks, including possible loss of principal. Value securities may not increase in price as anticipated or may decline further in value. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Because the Fund may invest its assets in companies in a specific region, including Europe, it is subject to greater risks of adverse developments in that region and/or the surrounding regions than a fund that is more broadly diversified geographically. Current political and financial uncertainty surrounding the European Union may increase market volatility and the economic risk of investing in companies in Europe. Smaller-company stocks have exhibited greater price volatility than larger-company stocks, particularly over the short term. The fund’s investments in companies engaged in mergers, reorganizations or liquidations also involve special risks as pending deals may not be completed on time or on favorable terms. The fund may invest in lower-rated bonds, which entail higher credit risk. Please consult the prospectus for a more detailed description of the fund’s risks.

Franklin Total Return Fund
Performance Prospectus

All investments involve risks, including possible loss of principal. Interest rate movements and mortgage prepayments will affect the fund’s share price and yield. Bond prices generally move in the opposite direction of interest rates. Thus, as the prices of bonds in the fund adjust to a rise in interest rates, the fund’s share price may decline. Changes in the financial strength of a bond issuer or in a bond’s credit rating may affect its value. The risks associated with higher-yielding, lower-rated securities include higher risk of default and loss of principal. Investment in foreign securities also involves special risks, including currency fluctuations, and political and economic uncertainty. Derivatives, including currency management strategies, involve costs and can create economic leverage in the portfolio which may result in significant volatility and cause the fund to participate in losses (as well as gains) on an amount that exceeds the fund’s initial investment. The fund may not achieve the anticipated benefits, and may realize losses when a counterparty fails to perform as promised. These and other risk considerations are discussed in the fund’s prospectus.

Templeton Global Bond Fund
Performance Prospectus

All investments involve risks, including possible loss of principal. Derivatives, including currency management strategies, involve costs and can create economic leverage in the portfolio which may result in significant volatility and cause the fund to participate in losses on an amount that exceeds the fund’s initial investment. The fund may not achieve the anticipated benefits, and may realize losses when a counterparty fails to perform as promised. The markets for particular securities or types of securities are or may become relatively illiquid. Reduced liquidity will have an adverse impact on the security’s value and on the fund’s ability to sell such securities when necessary to meet the fund’s liquidity needs or in response to a specific market event. Foreign securities involve special risks, including currency fluctuations (which may be significant over the short term) and economic and political uncertainties; investments in developing markets involve heightened risks related to the same factors. Sovereign debt securities are subject to various risks in addition to those relating to debt securities and foreign securities generally, including, but not limited to, the risk that a government entity may be unwilling or unable to pay interest and repay principal on its sovereign debt, or otherwise meet its obligations when due. Investments in lower-rated bonds include higher risk of default and loss of principal. Bond prices generally move in the opposite direction of interest rates. As the prices of bonds in the fund adjust to a rise in interest rates, the fund’s share price may decline. Changes in the financial strength of a bond issuer or in a bond’s credit rating may affect its value. These and other risks are discussed in the fund’s prospectus.

Important Legal Information

This communication is general in nature and provided for educational and informational purposes only. It should not be considered or relied upon as legal, tax or investment advice or an investment recommendation, or as a substitute for legal or tax counsel. Any investment products or services named herein are for illustrative purposes only, and should not be considered an offer to buy or sell, or an investment recommendation for, any specific security, strategy or investment product or service. Always consult a qualified professional or your own independent financial advisor for personalized advice or investment recommendations tailored to your specific goals, individual situation, and risk tolerance.

Franklin Templeton does not provide legal or tax advice. Federal and state laws and regulations are complex and subject to change, which can materially impact your results. Franklin Templeton Distributors, Inc. (FTDI) cannot guarantee that such information is accurate, complete or timely; and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information.

Investors should carefully consider a fund's investment goals, risks, charges and expenses before investing. Download a prospectus, which contains this and other information. Investors should read the prospectus carefully before they invest or send money.