Our investors have done well!

Our investors continue to gain on inflation!

During the third quarter of 2017 our investors’ portfolios, in the aggregate have increased in value by 4.12%. The average annualized return for our investors during the past 5 years has been +5.31%. The precise rate of inflation during the past 5 years is not yet known, but a good estimate would be about 1.5% per year. Thus, our clients’ investment portfolios have, in general grown much faster than the rate of inflation during the past 5 years!

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, while our most conservative investors experience results that are lower. Investment return information is provided by Morningstar using GIPS standards.


Investment results have been posted.

If you are our investment management client you will now find your preliminary 3rd quarter investment reports posted in your secure web portal. Final reports will replace the preliminary reports when September inflation information becomes available.


Interactive connectivity for financial planning is coming.

Our clients know that engaging in the financial planning process is important. It greatly increases the likelihood that financial goals will be achieved. We have been working to make the process more, and more efficient over the past years…and decades. A while back I mentioned that we would be taking another step forward this year with the development of client facing interactivity. This enhancement has taken longer than anticipated, but is progressing. Stay tuned.


Labor force trends and career options.

…People are working later in life for a number of reasons. They are healthier and have a longer life expectancy than previous generations. They are better educated, which increases their likelihood of staying in the labor force. And changes to Social Security benefits and employee retirement plans, along with the need to save more for retirement, create incentives to keep working…

It is not unusual for our clients to give some thought to how they might spend their time when they have reached the traditional retirement age. The above excerpt is from a paper published by the US Bureau of Labor Statistics which provides some insights concerning employment trends now and in the next years. You can view the paper here.


Access our website now while traveling.

A while back I informed you that we had blocked access to www.fpai.net from countries other than the US. We have now enhanced our website security/firewall system so that it is not necessary to block all access from other countries, while still having protection against hackers with malicious intent. Therefore, if you are one of our clients who travels the world you will now be able to stay in touch wherever Wi-Fi is available.


Thank you.

Many readers of this blog have offered sympathies regarding the recent passing of my mother. In our experience caring is central to what makes life good. Thank you for caring.


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