Let’s Be Careful Out There…

This is just a quick note of caution to all of our readers. More of a “blurb” than a “blog”.

As investment advisors, we often have a front row seat to people’s financial mistakes. One of the biggest mistakes people make is believing an unscrupulous advisor that guarantees investment returns.

By law, investment advisors are NOT allowed to guarantee investment returns.

If you are approached by someone who states that they can triple your money, guarantee an XX% rate of return on your money, or makes a claim guaranteeing you to never lose your money, kindly show that person the door. The only money they are tripling is most likely their own, through gaining access to yours.

In our roles as life insurance agents, we often show people illustrations showing a guaranteed interest rate on a policy or annuity. This cannot be mistaken for the same type of guarantee that is mentioned above as they are contractual promises from the company providing the policy. The company has a financial interest in seeing that they honor their guarantees. You, as a consumer of the product, still need to be aware that those guarantees are only as strong as the company behind it. Therefore, is it truly a guarantee? By the strictest definition of the word, I would say no.

Bottom line. Nothing in the financial world is truly guaranteed, even the interest on government bonds that are backed by the “full faith and credit of the U.S. government” (don’t even get me started…). Fall back on the old saying that if it seems too good to be true, it probably is.

American Finance Trust Redemption Paperwork

Most of you, by now, have received paperwork from American Finance Trust (AFIN/AFT) stating that they have changed their Share Repurchase Program to provide for only one annual redemption. In addition to this letter, AFIN/AFT also sent a form for you to use in case you want to rescind your redemption election for this year.

As outlined in our 3rd Quarter 2016 Newsletter, we are in the process of exiting all of our American Realty Capital (now known as AR Global) positions, of which AFIN/AFT is one.

We recommend that you DO NOT send in the form to rescind your  redemption request. If you send it in, you will not be able to participate in the redemption event scheduled for December, 2016 (with proceeds paying in January 2017).

The redemption paperwork that you have on file is, for now, still effective for the 2016 redemption.

Please call or email with any questions you may have. We hope you all are having a great summer.