An Introduction to Income With GrowthAdvisors Capital Management, LLC is a registered investment advisory firm.

10 Wilsey Square, Ridgewood, NJ 07450 phone 201-447-3400, fax. 201-847-4099. www.advisorscenter.com.

When thinking about ACM’s Income with Growth investment strategy, picture an apple orchard.“”When thinking about ACM’s

Income with Growth investment strategy, picture an apple orchard.“”

Much in the way an orchard can grow a crop of apples, our Income with Growth portfolio is designed to produce a recurring annual crop of dividends and interest.

“”Much in the way an orchard can grow a crop of apples, our Income with Growth portfolio is designed to produce a recurring annual crop of dividends and interest.

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“”And similar to the way the owner of an orchard can live off the apples, the investor in an Income with Growth portfolio can live off the growing income produced by dividends and interest.*

*A diversified portfolio does not eliminate the possibility that you can lose your original investment. Dividends and interest can be reduced, suspended and eliminated and are not guaranteed.

“”If you consume more than the apple harvest and cut down trees to live, the orchard will produce a smaller crop of apples next year. !Similarly, using investment principal for distributions means less income generation as well. !This can result in outliving your investments.

However, if you don’t eat all the apples, the extra seeds can be planted. And next year’s harvest can be even larger. !ACM’s Income with Growth works the same way. Undistributed income will be reinvested. This could result in greater cash flow in the following years.*

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*Dividends and interest can be reduced, suspended and eliminated and are not guaranteed.

What are the risks to your apple orchard?ACM has identified key risks with the potential to affect your retirement income. Our Income with Growth strategy seeks to mitigate these risks.

Longevity: Many people risk outliving their assets. A 65 year old couple today has a

50% chance that one partner will live to age 88.*

*Annuity 2000 Mortality Table; Society of Actuaries

Inflation: Inflation increases the future costs of goods and services, and may erode the value of assets set aside to meet those costs.

Asset Allocation: Investors with portfolio concentrations in low yielding investments may find themselves with inadequate growth of cash flow and principal during their retirement years.

Withdrawal Rate & Method: Aggressive withdrawal rates or the use

of principal for income may increase the likelihood that an investor may

deplete their assets prematurely.

Another risk to retirement income: TimingThis chart provides a striking hypothetical illustration of two portfolios, A and B, each begin with $100,000 and both withdrawing $7,000 per year.

Portfolio A and B experience exactly the same returns over a 21-year period only in inverse order or “sequence.” Portfolio A has the bad luck of having a sequence of negative returns in its early years and is completely depleted by year 13. Portfolio B, in stark contrast, has a few positive returns in its early years and ends up two decades later with more than triple the assets with which it began.

* Starting balance = $100,000; Withdrawals = $7,000/year

Portfolio A shows the devastating effect of using principal to cover distributions during a period of negative equity returns. Portfolio B is lucky, not smart. The positive equity returns allow the portfolio to appreciate while providing distributions. Should the ensuing years provide continued negative returns, while the client maintains distributions from principal, Portfolio B value will eventually match Portfolio A.

Both portfolios stress importance of sensible withdrawal rates and using cash flow from dividends and interest to provide income for distributions. 10.40% 10.40% Arithmetic Mean

14.60% 14.60% Standard Deviation 9.40% 9.40% Compound Growth Rate

Data Source with permission: Fidelity Research Institute, QWeMA Group Inc., August 2007

Return Balance* Return Balance* Year-0.1839 75,897 0.2657 117,710 1-0.1914 55,710 0.1961 132,420 2

-0.0459 46,475 0.0526 132,017 30.1847 46,766 0.1657 145,733 40.0679 42,466 0.336 185,347 50.143 40,537 0.2123 216,210 6

-0.1539 28,376 0.1392 238,332 70.1459 24,495 -0.0161 227,608 80.0895 19,060 0.2103 267,002 90.1952 14,414 0.1621 302,148 100.2072 8,951 0.2072 356,303 110.1621 2,267 0.1952 417,486 120.2103 0 0.0895 447,225 13-0.0161 0 0.1459 504,454 140.1392 0 -0.1539 420,896 150.2123 0 0.143 473,083 160.336 0 0.0679 497,730 170.1657 0 0.1847 581,367 180.0526 0 -0.0459 548,004 190.1961 0 -0.1914 437,456 20

0.2657 0 -0.1839 351,295 21

PORTFOLIO A PORTFOLIO B

So how do we build your orchard?

Master Limited Partnership

Fixed Income

REIT’s (publicly traded)

Dividend Stocks

Preferred Stock

Utilities/Telco

Cash

ACM ’s Income with Growth strategy places primary emphasis on seeking long-term growing income. As a secondary objective, this strategy seeks to provide capital appreciation in an attempt to maintain the value of the account relative to inflation. To provide for a diverse stream of dividend and interest income, each client’s portfolio is allocated amongst fixed income, preferred stock, real estate investment trusts, master limited partnerships and other income producing equities.   ACM takes a two-pronged approach in selecting appropriate investments. We begin with a top-down macro analysis of factors such as the economic and business cycles, interest rate outlook and demographics.   Within that framework, we then employ a fundamental, bottom-up analysis targeting sectors for further review. Once a sector has been identified as having potential growth and/or income opportunities, an evaluation is performed on the investment merits of the individual companies within this sector.

ACM’s strategy target allocations can change at any time due to market opportunity and conditions. Portfolio income is not guaranteed and is subject to market volatility. Dividends and interest are subject to reductions and terminations.

Target Allocation

What can generated cash flow be used for?

Everyday lifestyle expenses

Mortgage payments, car payments, loan payments

Payments of insurance premiums

IRA required minimum distributions

Healthcare expenses

upplement fixed income solutions

Distributions can be made monthly, quarterly or annually by check, EFT or wire.

*Dividends and interest can be reduced, suspended and eliminated and are not guaranteed.

S

This presentation must be presented in its entirety including all attached disclosure pages. The information and data provided do not constitute investment advice and are only provided for informational purposes. !

Advisors Capital Management, LLC is a registered investment advisory firm. 10 Wilsey Square, Ridgewood,

NJ 07450 201-447-3400, Fax. 201-847-4099. !

Web address. www.advisorscenter.com. The firm’s ADV part 2A & 2B is available upon request.