Schannep Investment Advisors, Inc.
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BSchannep@SIATucson.Com

Telephone:       520-544-2500
Toll Free:         866-544-2500
Fax Number:    520-544-0499

Securities offered through
First Allied Securities, Inc.
A registered broker/dealer.
Member FINRA/SIPC.

Schannep Investment Advisors is a
registered investment adviser in the
state of Arizona. 

First Allied Securities, Inc. does not
endorse or support this web site, nor
are they affiliated with
Schannep Investment Advisors, Inc.

 

The real rate of CD Returns verses our
Conservative Income portfolio

 As of 1/1/2009

        
      Certificates of Deposit Capital/Preservation Income Model

Annual

        Real Return   Real Return Advantage/
      Annual After Taxes Annual After Taxes Disadvantage
Year Taxes 2 Inflation 3 Rates 1 & Inflation Total Return & Inflation Over CDs
               
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
31%
31%
31%
31%
31%
31%
31%
30.50%
27%
27%
27%
35%
35%
2.70%
2.50%
3.30%
1.70%
1.61%
2.68%
3.39%
1.55%
2.38%
1.89%
3.25%
3.42%
2.39%
4.96%
5.98%
5.47%
6.01%
5.65%
5.73%
7.13%
4.65%
3.02%
1.30%
2.26%
4.03%
4.03%
0.72%
1.63%
0.47%
2.45%
2.29%
1.27%
1.53%
1.68%
-0.18%
-0.94%
-1.60%
-0.80%
1.00%
1.22%
15.29%
7.56%
10.68%
10.05%
6.44%
4.81%
1.58%
-3.33%
14.33%
5.27%
2.86%
8.44%
-1.86%
8.05%
1.92%
5.67%
5.32%
1.76%
-0.07%
-0.45%
-4.81%
8.57%
0.60%
-1.56%
3.10%
-2.58%
6.42%
1.44%
3.22%
3.04%
0.49%
-1.60%
-2.13%
-4.64%
9.51%
2.20%
-0.76%
2.10%
2007        35%       4.08% 5.15%     -0.73%     4.89%    -0.90%      -0.17%
2008        35%      1.14% 3.97%      1.44%   -3.63%    -3.50%      -4.94%
               
               
Average Annual Rate of Return: 4.70%   5.76%   1.06%
Average Return after Taxes and Inflation:   0.68%   1.46% .77%

1 The Federal Reserve Board
2 Rates based on $100,000 of taxable income for a person filing single
3 U.S. Department of Labor Statistics

The table above demonstrates, historically, that the real rate of return on CDs and our Capital Preservation/Income model portfolios, when calculated after taxes and inflation, are significantly lower that any stated rates. The purpose of this demonstration is to illustrate that a portfolio consisting of 80% fixed income and 20% stocks or equities historically produces a significant increase in the total rate of return over Certificates of Deposits.

Past performance does not guarantee future results.
CDs are insured by the FDIC. Investment portfolios consisting of equities and fixed income are not insured and their value will fluctuate with market conditions.
 

               ( Return to Investment Primer Index )

This report is prepared for general circulation and is for informational purposes only. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or service. Market prices and other data may be obtained from outside sources and is not warranted as to completeness or accuracy. Any comments, statements and/or recommendations made herein do not necessarily reflect those of First Allied Securities, Inc., its subsidiaries or affiliates, and are subject to change without notice.
 

Securities offered through First Allied Securities, Inc.   A register broker/dealer.  Member FINRA/SIPC.
Schannep Investment Advisors is a registered investment adviser in the state of Arizona.  First Allied Securities, Inc. does not endorse or support this web site, nor are they affiliated with Schannep Investment Advisors, Inc.