Wells Fargo's Cash Investment Options: What You Need To Know

Wells Fargo offers a range of cash investment options, including stocks, bonds, mutual funds, and exchange-traded funds (ETFs). WellsTrade, their online and mobile brokerage platform, allows investors to trade various assets, including stocks, ETFs, options, no-load mutual funds, and money markets. Wells Fargo Advisors, their investment service, provides access to alternative investments such as hedge funds, managed futures, and real estate funds, as well as values-aligned investing options. Additionally, Wells Fargo Premier offers bonus incentives for customers who upgrade their accounts or open new Premier Checking accounts with qualifying deposits or investments.

Stocks

There are two main types of stocks: common stock and preferred stock. Common stock is the most prevalent type, offering the potential for growth through company expansion and profits and possibly paying dividends to shareholders. It also grants shareholders voting rights on matters like corporate policy and the board of directors. On the other hand, preferred stockholders have priority over common stockholders in the event of a company's bankruptcy or dissolution. Preferred stocks typically pay fixed, regular dividends but lack the growth potential of common stocks and do not usually come with voting rights.

Wells Fargo offers various investment options, including stocks, through its WellsTrade Online Brokerage Account. This platform enables you to trade stocks, ETFs, options, no-load mutual funds, and more. It provides a single sign-on for easy access to your Wells Fargo Advisors WellsTrade brokerage accounts and Wells Fargo bank accounts. Additionally, WellsTrade offers a range of account types, such as standard brokerage, traditional/Roth/SEP/inherited IRAs, education savings accounts, and business accounts.

It is important to remember that investing in stocks carries risks, and stock prices can be volatile. Before investing, it is advisable to consult a financial advisor to understand the potential benefits and drawbacks of stock investments and ensure they align with your financial goals and risk tolerance.

Bonds

When you buy a bond, you are essentially lending money to the bond's issuer, which could be a government, municipality, or corporation. In exchange, the issuer promises to pay you a specified rate of interest during the life of the bond and to repay the principal amount borrowed on a specified maturity date.

There are different types of bonds offered by Wells Fargo, including:

• Government bonds: These are issued by national governments and are generally considered low-risk investments.
• Municipal bonds: Issued by state, city, or local governments to finance public projects such as roads or schools. They often provide tax benefits to investors.
• Corporate bonds: Offered by corporations to finance their operations and typically offer higher interest rates than government bonds.

It's important to note that while bonds provide a stable investment option, they are still subject to certain risks. These include interest rate risk, where changing interest rates can affect a bond's market value, and credit risk, where the issuer may fail to make interest payments or repay the principal amount.

Mutual funds

Wells Fargo offers a wide range of mutual fund options to choose from, including no-load, no-transaction-fee mutual funds with $0 fees, as well as no-load, transaction-fee mutual funds with a $35 fee. You can use the Wells Fargo Advisors Mutual Fund Screener to research thousands of mutual funds based on criteria such as asset classes, Morningstar categories, sectors, and risk tolerance levels.

Additionally, Wells Fargo offers a variety of brokerage account features to complement your mutual fund investments. With a single sign-on, you can access your Wells Fargo Advisors investment and Wells Fargo banking accounts on your PC, laptop, tablet, or smartphone. You can also take advantage of Brokerage Cash Services, which enables easy account transfers, mobile check deposits, and peer-to-peer payments.

It's important to note that mutual funds, like any investment, come with certain risks. The returns and principal value of a mutual fund can fluctuate, meaning that shares may be worth more or less than their original cost when redeemed. As always, be sure to consult with a financial advisor to determine if mutual funds are a suitable investment option for your financial goals and risk tolerance.

Exchange-traded funds (ETFs)

Wells Fargo offers a range of investment options, including exchange-traded funds (ETFs).

ETFs are a type of investment vehicle that allows investors to buy a basket of securities, such as stocks, bonds, or other assets, that are traded on a stock exchange throughout the day. Similar to mutual funds, ETFs offer investors the ability to purchase shares of a diversified fund rather than individual investments. This provides investors with a convenient way to gain exposure to a variety of assets in one transaction.

One of the key advantages of ETFs is that they can be traded on an exchange just like individual stocks. This means that investors can buy and sell ETFs during market hours, providing greater flexibility and liquidity compared to traditional mutual funds, which are typically traded only at the end of the day.

Wells Fargo offers $0 online and automated telephone trading of stocks and ETFs through their WellsTrade platform. This means that investors can take advantage of commission-free trading for ETFs and stocks, making it a cost-effective option for those looking to invest in these securities.

In addition to the standard brokerage account, WellsTrade also offers other account types such as traditional, Roth, and SEP IRAs, education savings accounts, custodial accounts, trust accounts, business accounts, and Qualified Retirement Plans.

It is important to note that while ETFs offer a convenient and flexible way to invest, they are subject to investment risks, including the potential loss of the principal amount invested. As with any investment, it is crucial to understand the risks involved and consider how it aligns with your financial goals and risk tolerance.

Annuities

Wells Fargo also offers a $2500 or $3500 bonus when you open or upgrade a Wells Fargo Premier relationship. To qualify for this bonus, you must bring $250,000 or more in new deposits to qualifying linked accounts within 45 days and maintain a minimum balance of $250,000 for 90 days after opening or upgrading your account. Qualifying linked accounts include bank deposit account balances (such as checking, savings, time accounts, and FDIC-insured IRAs) and investment account balances (brokerage, eligible foreign exchange transactions, and annuities). It's important to note that certain brokerage accounts are not eligible for this promotion.

Frequently asked questions