One of the most attractive aspects of retirement is the freedom to live life on your own terms. 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.
For more than 70 years, spanning multiple market cycles, Franklin Income Fund--Advisor Class (FRIAX) has paid uninterrupted dividends, while also paying annual capital gains nearly 80% of the time.1 Here's how it would've worked for someone retiring about 20 years ago on December 31, 1999:2
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.
Income Distributions of a $500,000 Investment in Franklin Income Fund─Advisor Class
20-Year Period Ended December 31, 2019
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sept | Oct | Nov | Dec | |
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2000 | ![]() |
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2001 | ![]() |
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2002 | ![]() |
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2003 | ![]() |
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2004 | ![]() |
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2005 | ![]() |
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2006 | ![]() |
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2007 | ![]() |
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2008 | ![]() |
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2009 | ![]() |
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2010 | ![]() |
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2011 | ![]() |
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2012 | ![]() |
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2013 | ![]() |
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2014 | ![]() |
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2015 | ![]() |
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2016 | ![]() |
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2017 | ![]() |
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2018 | ![]() |
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2019 | ![]() |
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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 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
With over 70 years of uninterrupted dividends, Franklin Income Fund provides investors seeking income a time-tested strategy that has delivered strong results over multiple market cycles.”
Edward D. Perks
Portfolio Manager, Franklin Income Fund
Average Annual Total Returns (For Periods Ended September 30, 2020)
1-year | 3-year | 5-year | 10-year | Since Inception (8/31/48) | |
---|---|---|---|---|---|
Advisor Class (FRIAX)1 | -3.86% | 0.98% | 5.47% | 5.75% | 9.89% |
Class A (FKIQX)3 | |||||
Without Sales Charge | -4.48% | 0.63% | 5.25% | 5.54% | 9.79% |
With 3.75% Initial Sales Charge | -8.06% | -0.65% | 4.45% | 5.14% | 9.73% |
Total Annual Operating Expenses | |
---|---|
Advisor Class | 0.47% |
Class A | 0.72% |
30-Day Standardized Yield As of SEPTEMBER 30 | |
---|---|
Advisor Class | 3.48% |
Class A | 3.11% |
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.
All investments involve risks, including possible loss of principal. The fund's share price and yield will be affected by interest rate movements. 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 fund's portfolio includes a substantial portion of higher-yielding, lower-rated corporate bonds because of the relatively higher yields they offer. Floating-rate loans are lower-rated, higher-yielding instruments, which are subject to increased risk of default and can potentially result in loss of principal. These securities carry a greater degree of credit risk relative to investment-grade securities. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. These and other risk considerations are discussed in the fund's prospectus.
For Financial Professional Use Only
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. As a financial professional, only you can provide your customers with personalized advice and investment recommendations tailored to their specific goals, individual situation, and risk tolerance.
Franklin Templeton Investments (FTI) does not provide legal or tax advice. Federal and state laws and regulations are complex and subject to change, which can materially impact results. FTI 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.
All financial decisions and investments involve risk, including possible loss of principal.
Your clients should carefully consider a fund's investment goals, risks, charges and expenses before investing. Download a prospectus, which contains this and other information. Your clients should read the prospectus carefully, before they invest or send money.