Investment Reports and Two Warnings.

If you are an investment client of Financial Planning Associates, Inc., your preliminary 4th quarter reports have been posted to your secure web portal. During 2019 our clients’ investment accounts changed in value by an aggregate average amount of +14.12%. The portfolio with the highest return increased by +47.16% during the year. Final reports will replace the preliminary reports after inflation information becomes available. It should be noted that investor experiences can vary significantly, especially for those with large cash flows during the period. In addition, we generally invest new clients gradually which can limit gains during bull markets. This strategy would also limit losses during bear markets.

Note: The calculation used to determine our clients’ aggregate returns is called the internal rate of return. It is cash flow specific and is net of all fees and expenses. It represents the average return experienced by our investment clients, from the most conservative to the least conservative who were invested during any portion of the period. Typically, our younger clients experience returns greater than the aggregate, and our most conservative investors may experience results that are lower. Investment return information is provided by Morningstar using GIPS standards.


Warning #1: Beware of dating fraud! Not dating as in romantic relationships. This warning pertains to how you date a document. A piece in USA Today reports that as we enter the 3rd decade of the 21st century abbreviating dates could lead to harmful manipulation. The article is here.


Warning #2: Beware of affinity fraud! The SEC’s Office of Investor Education and Advocacy has issued an Investor Alert to help educate investors about affinity fraud, a type of investment scam that preys upon members of identifiable groups, such as religious or ethnic communities or the elderly. The Alert is posted here.


Happy New Year!

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