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Linnard Financial Management & Planning, Inc.

Fee-Only Financial Planning and Investment Advisor

DJIA 1990s

REGISTERED INVESTMENT ADVISOR


LFM&P provides investment management services as a “fee-only" registered investment advisor.

For many people, investment in stocks and bonds mutual funds and ETFs is an important strategy to augment income, build wealth, and reach their life goals. For many of those, learning to invest can be a life-long process with many challenges and setbacks encountered along the way. One of those challenges is simply learning how to overcome natural human emotions and ways of thinking that are counterproductive. Another set of lessons is learning how to appreciate and manage risk.

The LFM&P Way

We recognize that the markets’ results cannot be predicted with any more accuracy than any other outcomes that depend on human emotions and decisions. That does not mean though that there is no point in selecting strong investments or managing risk. We have developed and follow non-emotional, rules-based strategies which seek to do both - recognize and manage strength and impending risk.

LFM&P's Investment Services are provided in two ways:

Individual Returns and Strategy

Sometimes those lessons that teach how to deal with the markets can be expensive. The 2018 survey released by Dalbar1, detailing mutual fund investor's returns, shows that over the last 10 years the average equity investors' average annual return was 4.88%, while the S&P 500 index gained 8.5%. The average bond investor's return was .48% over the same period, while the Barclays Aggregate Bond index earned 3.31%. This data suggests that a person counting on receiving a historical index return for their financial plan, and who is following an "average" strategy is likely to be disappointed.

There are multiple factors that cause this difference - commissions, mutual fund management costs, cash balances, untimely withdrawals... Some of these drags can be reduced by paying attention to the details. Others, like investor's emotions and unhelpful cognitive processes, take learning over time. LFM&P actively addresses these issues by using exchange-traded funds, managing risk, and using an emotion-minimizing rules-based approach. You can determine if an advisor's strategy is designed to minimize these return-reducing issues. It should be a factor to weigh when considering their approach, and whether their fee represents a value for you.

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1Dalbar "2018 QAIB Report" 2018

 

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