Core Stock Investment Plan
A Strategy for Investing
in Great Companies

Put time on your side
WITH WACHOVIA SECURITIES
O UR O BJEC T I V E IS TO O F F E R YO U THE
opportunity to invest comfortably by building a
well-diversified portfolio of stocks we believe
can stand the test of time.

The Case for Long-Term Success What We Consider a ‘Core’ Stock
Think about the progress through the years We believe the stocks that form the core of your
of successful companies you know about — portfolio should be those of consistently profitable
businesses that expand, hire more people and industry leaders. We look for a history of:*
open more locations. When their stock is publicly • Consistently growing sales and earnings
held, their shareholders have the opportunity to
• A prominent market position
prosper along with the companies.
• Solid returns on invested capital
For investors who aspire to build significant
• A seasoned management team
wealth by investing in great companies, Wachovia
Securities offers the Core Stock Investment Plan. • The ability to maintain these characteristics
Our analysts have identified companies they To qualify for the Core Stock Investment Plan,
believe are well-managed and offer products stocks must meet criteria related to size, growth,
and services that are in demand — the kinds of profitability and financial strength. We consider
companies you want to own for a long time and, publicly traded companies with current market
perhaps, pass along to your heirs. In other words, capitalization in excess of $2 billion and revenues
companies whose stocks will be a “core” part in excess of $1 billion; we want only well-established
of your portfolio. companies on the list. Our analysts then rank
these companies on the basis of potential growth
and profitability — the ability to generate returns
on invested capital. One factor we believe may
identify future success is a company’s track record,
so we evaluate companies based on a full 10 years
of operating history. We also consider each
company’s capital structure. We look for companies
that don’t rely too heavily on debt. We seek to
avoid highly leveraged companies that may be
particularly vulnerable to a business downturn,
an interest rate upswing or both.
* Past performance does not guarantee future results.
2 Core Stock Investment Plan 3

If a company is an industry leader, meets our
criteria and has a conservative capital structure,
we will consider it for our Core Stock List. Because
stocks trade in anticipation of future develop-
ments, we attempt to determine whether the
companies have the potential to continue their
exemplary performance into the future. The
Core Stock Investment Plan is much more than a
method of identifying high-quality companies that
meet a variety of stringent criteria; it is a unique
I F YO U H A D I N V E S T E D $10,0 0 0
investment strategy that lets investors participate I N S T O C K S* AT Y E A R - E N D 19 87
comfortably in the stock market. $100,000
Grew to $60,738 on Dec. 31, 2007
Without Reinvested Dividends
80,000
Patience Is the Key
$60,738 60,000
Our formula for successful Core stock investing
40,000
begins with choosing good, quality companies
that we believe have solid prospects for the future. 20,000
$10,000
Many successful investors have built their wealth
through years and years of investing. Most 1987 2007
companies do not achieve success overnight,
and neither do their investors.
*Holding quality stocks (such as those included on our
Core Stock List) for many years is a good way to potentially
The goal is to build positions in high-quality increase investment value. The chart above illustrates the
growth of $10,000 invested in the Standard & Poor’s 500
issues over time and hold them as long-term Stock Composite Index (S&P 500) on Dec. 31, 1987.
investments, taking advantage of the potential Remember, you cannot invest directly in an index. You
can participate in the potential growth of high-quality
for compounding growth. Core stocks. This hypothetical illustration has been
provided for informational purposes only and is not
intended to represent an actual investment.
4 Core Stock Investment Plan 5

Historically, stocks of companies that possess these Diversification Is Critical
Core characteristics are seldom “cheap” when mea-
sured by many of the financial considerations that Diversifying a portfolio is a way of modifying
knowledgeable investors examine when trying to risk. Of course, diversification does not eliminate
assess a stock’s investment merits. In other words, fluctuating prices or uncertain returns. The charts
the market often makes you “pay up” for quality, below depict general guidelines for diversifying
just as you do when purchasing other first-class the stock portion of your portfolio.
goods or services.
Although diversification is an important tool for
However, when we add a stock to the Core Stock managing risk, having a large number of stocks in
List, we hope investors do not overpay. We will not your portfolio makes it more difficult to monitor
add a stock to the Core list unless it is trading at each security’s progress. In addition, if one stock
what we consider an attractive price for long-term represents only 1% or 2% of the value of your
investment. portfolio, even if that stock doubles in value, it
will have little impact on the total return of your
portfolio. Building an investment portfolio takes
time and expertise.
Charts Illustrating Diversification Principles
At least 20 to 30 stocks in No more than 25% of the total No more than 15% of the total A minimum of 3% to 4% of the
approximately six to eight sec- portfolio value in any one portfolio value in any one total portfolio value in each
tors with different investment sector. stock. security.
characteristics.
6 Core Stock Investment Plan 7

Dividend Reinvestment
Can Help You Build Wealth
Many of the companies on the Core Stock List
have been able to increase their dividends on a
regular basis.* Consistently rising dividends are
often a byproduct of consistently rising earnings.
Over time, both should be catalysts for stock
appreciation. Investors should consider Wachovia
Securities’ no-fee dividend reinvestment program
as an attractive tool to help build wealth. I F YO U H A D I N V E S T E D $10,0 0 0
I N S T O C K S* AT Y E A R - E N D 19 87
Grew to $97,727 on Dec. 31, 2007 $100,000
When you use dividends paid to purchase With Reinvested Dividends
Grew to $60,738 on Dec. 31, 2007 $97,727
more shares of a stock in which you’ve already Without Reinvested Dividends
80,000
invested, the number of shares you own increases,
as do your dividends. The more shares you own, $60,738 60,000
the more you participate in the company’s
progress. This program is a free service Wachovia 40,000
Securities provides and reinvesting your cash
20,000
dividends is a way to maximize total return. $10,000
1987 2007
A Buy-and-Hold Strategy
Can Provide Tax Advantages
Index on Dec. 31, 1986, with all dividends reinvested,
would have grown to $97,727 by Dec. 31, 2007.
A stock investor pays taxes on capital gains or Remember, you cannot invest directly in an index. You
can enjoy the benefits of dividend reinvestment in the
deducts capital losses only when the stock is sold Core Stock Investment Plan. This hypothetical illustration
has been provided for informational purpose only and is
or otherwise disposed of (i.e., when the gain or loss not intended to represent an actual investment.
is recognized). Until an investor sells the stock, he
or she will not pay capital gains taxes. Because an
* Dividends are not guaranteed. A company may reduce or eliminate
their dividend at any time.
8 Core Stock Investment Plan 9

investor purchases Core stocks with the intent of The Core Stock Investment Plan has been designed
holding them for a long time, he or she may pay with the intention that the investor will hold these
fewer capital gains taxes on Core stocks than on stocks for a minimum of five years. If the investor
an investment that turns over more frequently.* never sells the stocks, choosing instead to pass
them on to heirs, he or she may avoid capital
An investor who holds his or her stocks for more
gains tax (although estate taxes may be owed in
than one year also receives the benefit of long-
some instances).
term capital gains tax rates. Long-term capital
gains on securities held more than one year qualify
for a 0% or 15% rate (depending on the investor’s Changes Are Part of Investing
marginal tax bracket). Short-term gains are taxed
at the same rate as ordinary income, so the tax rate It is difficult for an individual investor to monitor
may be as high as 35% on gains on stocks held a large portfolio of stocks. Keeping track of earn-
for one year or less. ings announcements, stock splits and dividend
increases is a time-consuming job. The Core Stock
Investors who hold their stocks for longer than
Investment Plan calls for a buy-and-hold strategy.
five years may receive even more favorable treat-
However, there may be times when it is appropriate
ment. The special 0% and 15% long-term capital
to make changes to your portfolio. For example,
gains rates are set to expire at the end of 2010
if a company no longer meets our criteria for
unless reenacted by government. The rates will
inclusion on the Core Stock List, we may remove
then jump to 10% and 20% starting Jan. 1, 2011.
the stock from the list. We will also remove a stock
Investors in the 15% ordinary income tax bracket
from this list if we believe the current stock price
who hold their stocks purchased after Dec. 31,
does not warrant the stock’s continued inclusion
2000, longer than five years will be taxed at a rate
on the list.
of 8% rather than 10% on dispositions after 2010.
Investors in the higher marginal tax brackets who Pruning your portfolio may also be prudent at
have purchased stocks since Dec. 31, 2000, and times. For example, one stock in the portfolio may
who hold them longer than five years will be taxed have appreciated significantly, and paring back
at a capital gains tax rate of 18% rather than 20% the size of the position may make sense.
on dispositions after 2010.
* Wachovia Securities does not offer tax advice; consult your tax advisor
or tax preparer for questions regarding your specific situation.
10 Core Stock Investment Plan 11

The Core Stock List is reviewed regularly, and
your Financial Advisor receives information
and guidance about the stocks on the list. Because
of this, you should feel confident in your ability
to add to positions instead of reacting with a
typical panic-and-sell mentality. This is a truly
valuable service for any size portfolio and just
one more way we can help you work toward
your financial goals.
A Core Stock List update report is published
quarterly. A special report is published annually
that discusses the Core philosophy in detail. Our Commitment to You
WE WILL HONOR OUR REL ATIONSHIP WITH YOU.
When you work with a Wachovia Securities
How You Can Participate
Financial Advisor, you have someone who takes
the time to listen, to understand your needs
To participate, simply contact your Financial and to help you clarify your goals.
Advisor. Remember, reaching your financial goals
usually depends on putting your hard-earned WE WILL BE FULLY INVESTED IN YOUR SUCCESS.
money to work. Although there are no guarantees Your Financial Advisor will help you stay on track
to meet your goals through intelligent financial
that this strategy will be successful, stocks of
solutions, in-depth analysis of your investments
solid, high-quality companies can help you meet
and regular feedback on your progress.
your financial goals. Ask your Financial Advisor
how the Core Stock Investment Plan may fit WE WILL BE WITH YOU E VERY STEP OF THE WAY.
your needs. Your needs and goals will change over time.
That’s why your Financial Advisor will be there
to provide ongoing guidance — along with the
exceptional service you deserve.
Securities and Insurance Products:
NOT INSURED BY FDIC OR ANY MAY NOT A DEPOSIT OF OR GUARANTEED Our commitment to you will not change. This is
FEDERAL GOVERNMENT AGENCY LOSE VALUE BY A BANK OR ANY BANK AFFILIATE
Wachovia Securities is the trade name used by two separate, registered broker- what it means to be with Wachovia Securities.
dealers and nonbank affiliates of Wachovia Corporation providing certain retail
securities brokerage services: Wachovia Securities, LLC, Member SIPC, and
Wachovia Securities Financial Network, LLC, Member SIPC.
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