Wealth Planning & Management, LLC

Report to Clients and to Prospects

Second Quarter, 2007

During the first six months of 2007, American investors saw a fine bull market, with The S&P Index of 500 securities rising at an annual rate of over 12 %.  (The precise return was 6 % for six months.)  As you will see below, portfolios of our firm kept up nicely.  However, we caution readers to accept the enduring statement:  past performance is not an indication of future results.  We also repeat a statement that appears in our personal policy letters to clients:

“If you and I do business twenty years, we will experience at least three downward adjustments.  At least one of those adjustments will test our patience and perseverance.”  This is a truism, an important idea, especially during down markets.  BUT.  This statement is not a prediction.  WP&M neither predicts the market nor attempts to trade according to so-called timing techniques.

During the first six months, the composite rate of return of 100 portfolios managed by WP&M was 5.03 %.  Note.  This statistic is for entire portfolios, including bonds and cash.  Hence, it is not comparable to the market return shown above.  When we measure the results of stocks alone in our portfolios, the return was 7.82 % for the six months.  None of these statistics has been annualized.

Please call us for additional data, such as rates of return for longer time periods, because we believe that the longer term is more representative and more important to investors. 

During the period, Managing Partner Paul Coan continued his service as president of The Indianapolis Chapter of The Financial Planning Association.

Jwg

7-3-2007