2021 Q3 In Review - Integrity Wealth Advisors, Ventura | Ojai, California

Q3 2021
IN REVIEW

TOTAL RETURN 2021 Q3 + NEWSWORTHY EVENTS
July 2 – NonFarm
payrolls increased
850,000 for the month
of June, compared with
the expected 706,000
July 16 – Consumer
Sentiment Index fell to
80.8, the lowest level since
February and much lower
than the expected 86.0
July 19 – Blue Origin
successfully conducts
its first human test
flight with Jeff Bezos on
board
August 2 – A
bipartisan group
of senators
agreed on a $1T
infrastructure bill
over the weekend
August 19 – Stocks tumbled
as the Fed’s July minutes are
released, citing that the central
bank was preparing to taper
later this year
August 24 – The
Pfizer vaccination
receives FDA
approval
August 26 – A
suicide bomb
at Kabul airport
kills 182 people,
including 13 U.S.
service members
August 30 – The US
withdraws its last remaining
troops from Kabul, ending
20 years of operations in
Afghanistan
September 3 – It became
evident that the Delta
variant is taking a toll on job
growth, with just 235,000
jobs gained, compared with
the expected 725,000
September 7 – El Salvador
becomes the first country in the
world to accept Bitcoin as an
official currency
September 20 – The U.S.
stock market sold off, as
investors worried that
the financial distress of a
large real estate company
in China could create
problems elsewhere across
the globe
S&P 500 TOTAL RETURN
MSCI ACWI EX USA TOTAL RETURN
BARCLAYS US AGGREGATE TOTAL RETURN
6%
4%
2%
0%
0.58%
0.05%
-2%
-2.88%
-4%
July
August
September
12%
S&P 500 TOTAL RETURN
MSCI ACWI EX USA TOTAL RETURN
BARCLAYS US AGGREGATE TOTAL RETURN
As of close 9/30/2021
11%
10.42%

CEO CORNER
2021
Q3
IN REVIEW
Hi everyone, and welcome to our thoughts on the quarter just ended. As has been the case throughout 2021, the market
had many swings during the quarter, the S&P500 finishing almost unchanged with an increase of just about a half a
percent, and the more tech driven NASDAQ up around 1 percent. Bonds finished the quarter flat after a rough month in
September. Speaking of September, it lived up to its reputation as being the worst month of the year, historically speaking,
averaging a 1% loss since 1928. This year was especially brutal as the major stock averages lost about 4.5% while bonds
lost almost 1%.
Why all the fuss? We will address this question a lot in this issue, but suffice it to say China, fear of the Fed reducing open
market bond purchases (or “tapering”, as you’ve heard it referred to in the financial media), and concerns over inflation
have been identified as the main culprits rattling the markets. Add to those concerns the inability of Congress to pass an
infrastructure bill as well as waiting until the last minute to pass emergency funding for the government so America can
pay it’s bills, and we have Q3.
We remain optimistic. The Fed is still at zero and will be for some time. Congress will eventually pass an infrastructure
bill in addition to all the money they’ve minted in the last year or so, and consumers are showing they are letting none of
the aforementioned concerns stop them from spending. These are big tailwinds that we feel will deliver solid returns from
stocks.
And a quick note: Our Investment Committee works hard on these reports to deliver unique content to you every quarter.
We feel you deserve our original thoughts, so we do not pay a third-party source to create these reviews. Please, then, join
me in thanking all the advisors contained herein for the time and effort they contribute to make this happen!
So, on behalf of all the professionals here at IWA, we THANK YOU for reading and hope you enjoy Q3 2021 In Review.
Stephen H Wagner, CFP
CEO Integrity Wealth Advisors

ECONOMIC CHARTS & NOTES
CONSUMER PRICE INDEX Core inflation continued to clock in above 5%
although the increase from July to August was the smallest since February.
Prices for housing, new vehicles, medical care, and recreation edged higher
while airline fares, used vehicles, and auto insurance declined.
Amount in Thousands Y/Y % Chg
6%
5%
4%
3%
2%
1%
0%
Jan ' 18
JOB OPENINGS & HIRES The U.S. retail industry hired 849,000 people in
July following record high hiring in the month prior. Retail job openings also
remained near record high levels as companies struggled to fill job vacancies
despite offers of higher wages, hours, and flexibility.
1200
1000
800
600
400
200
0
Jan '18
Jul '18
CPI Less Food
Jul '18 Jan ' 19
Retail Openings
Jan '19
Jul '19
Jul '19
Jan '20
Jan '20
CPI All
Jul '20
Retail Hires
Jul '20
Jan '21
Jan '21
Jul '21
CONSUMER SPENDING Disposable personal income improved in July
amid higher wages but remained below prior year levels absent the impact of
government stimulus programs. Personal spending also increased month-overmonth
as prices of both durable and nondurable goods rose.
% Chg Year-over-year
GDP After the domestic economy grew at a 6.7% annualized rate in Q2, economists
are anticipating slower growth in the back half of the year. The Fed's forecast for 5.9%
growth in 2021 reflects a strong consumer spending environment offset by the spread of
the delta variant, supply chain disruptions, labor shortages, and a cooler housing market.
% Growth
30
25
20
15
10
5
0
-5
-10
-15
Jan '19
35%
30%
25%
20%
15%
10%
5%
0%
-5%
-10%
-15%
-20%
-25%
-30%
-35%
2017
Jul '19
Consumption
Jan '20
Jul ' 20
GDP
Disposable Income
Jan '21
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2018 2019 2020 2021

THE CHINA FEAR
People in China are having the same debates about competition, consumer
rights, data protection, and individual privacy, as we are having here in the
U.S. The difference is that China is a one-party regime and has the ability to
make changes more rapidly than we can in the United States. Overall, we do
not believe the Chinese government is deliberately trying to deprivatize the
economy. The Chinese Communist Party's (CCP) main goal is the well being
and equality of its people. There are industries that have stepped in to regulate
"inequality" and access, such as the private education industry. The China
Securities Regulatory Commission met with major U.S. investment banks
2021
Q3
IN REVIEW
in July to clarify some miscommunication and stated, specifically about the
DiDi IPO, that they are not attempting to reduce or restrict foreign capital or
decouple their market. Private companies now drive the Chinese economy,
which is a huge change from the not so distant past, and there is no going
backwards. Small companies now create all of the innovation, wealth, and new
jobs in China. Some of the well-known Chinese stocks are at 20% to 30% pricing
discounts on price-to-earnings ratios compared to their global peers. We feel
that the selection of quality names gives you the opportunity to participate in
the growth of a healthy and profitable environment.
30%
25%
20%
15%
10%
5%
0%
-5%
-10%
-15%
Oct 24, 2020 – Jack Ma
attacked China’s banking
system and called for
reforms
Nov 3 , 2020 –
Ant Group's IPO
suspended
Jan 4 , 2021 – BABA
down 2.15% as rumors
spread about Jack Ma's
disappearance
Feb 19 , 2021 – Biden said that
the U.S. and its Int'l partners
must hold China to account for
its economic practices
April 12 , 2021
– BABA slapped
with a $2.8B fine
by regulators
July 2 , 2021 – The
Cyberspace Admin of
China announced
it had launched an
investigation into Didi
May 13 , 2021 – China is
said to be preparing rules
for K-12 tutoring
July 23, 2021 –
China bars for-profit
tutoring in core
school subjects
Aug 12, 2021 – China
released a five-year
blueprint calling for
greater regulation of
the economy
Sept 16, 2021 - Chinese
property giant Evergrande
is on the brink of collapse,
and analysts warn the
potential fallout could
have far-reaching
implications that spill
outside China’s borders
-20%
SEPT 2020 MSCI CHINA % CHANGE
FEB 2021
SEPT 2021

THE EVERGRANDE STORY
During the first weeks of September the market ignored whispers of
a Chinese real estate giant facing debt problems larger than anything
China has ever seen. Evergrande was to pay $83.5 million (USD) in bond
interest on September 23rd. In response, many analysts’ thinking was
that Evergrande would not be able to survive without Chinese government
assistance. Those most pessimistic of the market were saying it might
be another Lehman Brothers, so it’s no surprise that this kind of news has
investors panicking. On September 20th the market reacted with the S&P
500 dropping 2% that day, even though Chinese investments only contribute
2% of S&P 500 revenue.
In August of last year, China’s authorities implemented a “Three Red Lines”
policy, according to which a property company’s access to financing is
predicated on satisfying three leverage ratios: 1) liability to asset less than
70%, 2) net debt to shareholders’ equity less than 100%, and 3) cash to
short-term debt not less than 100%. Thus, the Evergrande issue didn’t creep
up on investors. On the contrary, this potential Evergrande implosion has
been around for months, if not even longer. So when Evergrande failed to
meet these government ratios it could not borrow new debt to refinance old
debt and continue normal operations. This led to Evergrande failing to both
finish and start many projects to generate the cashflow needed to sustain
its business operations.
This also led to Evergrande missing the $80 million+ interest payment in
September, and Chinese authorities instructed Evergrande to restructure
their debt. These events are in the context that real estate is one of the
largest investments in Chinese households, plus real estate activity
accounts for 29% of China’s GDP. In addition, the Chinese Communist
EVERGRANDE CREDIT CASH FLOW PRIME
¥450,000
¥400,000
¥350,000
¥300,000
¥250,000
¥200,000
¥150,000
¥100,000
¥50,000
¥0
IN MILLIONS
MAINTENANCE CAPEX
INTEREST EXPENSE
DEBT MATURITIES
GROSS CASH EARNINGS
CASH & CASH FLOW AVAILABLE
CASH AVAILANLE & UNDRAWN REVOLVER
2020E 2021E 2022E 2023E 2024E 2025E 2026E
This chart with data from 2020
represents debt that was able
to be rolled into 2021 before the
“Three Red Lines” policy was in
place. What we will likely see
now is pre-default restricting
that will include some forms of
extension, partial payments, or
coupon reduction. To ease these
financing woes in the meantime,
the People’s Bank of China
(PBOC) has repeatedly injected
net new liquidity to the banking
system. Chinese Authorities will
use all means at their disposal to
restructure Evergrande’s debt with
minimal disruption to the financial
system and the economy.
Source: UAFRS, CapitolIQ

2021
Q3
IN REVIEW
Party’s agenda is focused on the wellbeing of the
people, and letting the second largest property
developer in China go under would not support that
agenda.
It is important, however, that the Chinese Communist
Party is not using this as an opportunity to nationalize
this company. They are offering them support
through adding liquidity to banks, and having local
governments help big projects continue development.
They are letting the company fail to some extent but
stepping in just enough to prevent the entire system
from failing. This is a pro-capitalistic move on their
part and is therefore a good sign for the rest of the
Chinese markets.
CHINA IS NOT USING THIS AS AN
OPPORTUNITY TO NATIONALIZE THIS
COMPANY... THEY ARE LETTING THE
COMPANY FAIL TO SOME EXTENT BUT
STEPPING IN JUST ENOUGH TO PREVENT
THE ENTIRE SYSTEM FROM FAILING.
CHINA
U.S.
MARKET VALUE OF ASSET CLASS (IN TRILLIONS), 2019
$0T $10T $20T $30T $40T $50T $60T
Source: Goldman Sachs
RESIDENTIAL PROPERTY
BONDS
STOCKS
Real estate makes up 70% of the household
wealth in China. Therefore, it is a huge liability
for banks and is tied to around 1/5th of
Chinese economic activity. This is the result
of the Chinese Communist Party limiting
access to the global financial markets for the
Chinese people, leaving real estate as one
of the people's few investment options. This
has caused a booming real estate market
since the early 1990’s. This has also caused
over-building in China, as evidenced by the
Chinese “ghost cities”. Many believe the
real estate bubble has popped, but it seems
obvious that Chinese real estate investment
is not going away any time soon, as we have
new reports of Chinese billionaire investors
opportunistically coming in to take a stake in
Evergrande. Time will tell the outcome for this
company, and the Chinese real estate market.

A DEEP DIVE INTO INFLATION
Inflation is one of the main topics in many investors' conversations presently. As an investor, why should we be concerned about inflation? Simply, the inflation
rate plays an important role in determining the health of an economy. Even moderate inflation can rapidly erode purchasing power and creates uncertainty as
businesses have more difficulty estimating future costs. Usually high inflation rates also correspond to high interest rates, as lenders need to compensate for
the decline in purchasing power which affects future interest and principal repayments. This results in higher costs of doing business, and places an overall drag
on the economy. The results of this affect corporate performance, and in turn stock price, capacity to take on and pay debt necessary for business operation, and
the dividends that some companies pay.
How does our current inflation rate look in the context of the bull market that has been fostered for investors over the last decade? Consumer prices in recent
months have been posting 12-month gains as high as 5.4%, a rate not seen since 2008. Below is a chart showing the annual inflation rate, along with its
12-month moving average​, from 2010 to the present.
ANNUAL INFLATION RATE 2010 - PRESENT
Source: www.inflationdata.com; updated 9/14/2021
Obviously, Q3 brought with it highs in the inflation rate,
caused in general by massive amounts of government
stimulus being pumped into the economy, paired with
supply chain issues. Key contributing components were
the increase in gasoline prices, which increased 42.7%
over the last year and are currently up 2.8% over the
last month. Used cars and trucks were also up 31.9%
over year-ago prices. Food was up 3.7% over year-ago
prices. The following table “A” shows the changes to the
Consumer Price Index (CPI) for key components, on a
monthly basis, since February of this year.
You may notice that the monthly rate of increase has
been slowing lately. The slight increase in August
represents a significant slowdown from what many
were calling "rampant" inflation. Inflation last month
was lower than July's 0.5% month-over-month increase,
and the August CPI was far lower than what analysts
expected. To consider further, some of these recent
increases have returned to previous levels, reinforcing
the Federal Reserve's (FED) thought of “transitory”, or
temporary, inflation. Take lumber for example, which
inflated by over 300% between November 2020 and May 2021. While still inflated, lumber has again fallen to a third of it's pandemic high, consistent with levels
commonly seen toward the end of 2020. Referencing the chart above, we can see that we are starting to see some monthly negative inflation numbers coming
in for used cars and trucks, as well as transportation related services. So, like lumber, we are seeing a similar arc with used car prices, which have fallen by
$2,000 over the past two months, demonstrating the “transitory” nature of inflationary pressures.

2021
Q3
IN REVIEW
Remember, though, that there are still dozens of supply chain cost components that have not yet rounded the curve. For example, shipping costs remain
high. Once the container shipping business makes a full recovery from the pandemic chaos, those costs will fall, directly impacting the prices of almost
everything sold around the world.
Of notable interest, one other crucial asset class is returning to reasonable levels. That asset class is iron ore. It is the second-most traded commodity
after crude oil and a critical input for the entire global economy. Total steel output has fallen by 8.4% compared with a year ago, and the expectation is
that it will fall further. This has been mainly caused by slowed economic activity in China, lowering steel demand.
Federal Reserve Chairman Jerome Powell recently made the following comments when addressing Congress: "As the economy continues to reopen and
spending rebounds, we are seeing upward pressure on prices, particularly due to supply bottlenecks in some sectors... These effects have been larger
and longer lasting than anticipated, but they will abate,
and as they do, inflation is expected to drop back toward
our longer run 2% goal." You may now be asking
yourself, can the Federal Reserve control inflation?
Powell goes on to say, "If sustained higher inflation
were to become a serious concern, we would certainly
respond and use our tools to ensure that inflation runs
at levels that are consistent with our goals." We can
assume from his comments that yes, Powell certainly
believes the FED has some control over inflation.
TABLE A. PERCENT CHANGES IN CPI FOR ALL URBAN CONSUMERS (CPI-U0: U.S. CITY AVERTAGE
Seasonally adjusted changes from precing month
Unadjusted 12-
mos ended Aug
Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 2021
All Items 0.4 0.6 0.8 0.6 0.9 0.5 0.3 5.3
Food 0.2 0.1 0.4 0.4 0.8 0.7 0.4 3.7
Food At Home 0.3 0.1 0.4 0.4 0.8 0.7 0.4 3.0
Food away frrom Home 0.1 0.1 0.3 0.3 0.7 0.8 0.4 4.7
Energy 3.9 5.0 -0.1 -0.1 1.5 1.6 2.0 25.0
Energy Commodities 6.6 8.9 -1.4 -1.4 2.6 2.3 2.7 41.9
Gasoline 6.4 9.1 -1.4 -1.4 2.5 2.4 2.7 42.7
Gfuel Oil 9.9 3.2 -3.2 -3.2 2.9 0.6 -2.1 33.2
Energy Services 0.9 0.6 1.5 1.5 0.2 0.8 1.1 8.6
Electricity 0.7 0.0 1.2 1.2 -0.3 0.4 1.0 5.2
Utliuty gas service 1.6 2.5 2.4 2.4 1.7 2.2 1.6 21.1
All items less food and energy 0.1 0.3 0.9 0.9 0.9 0.3 0.1 4.0
Commodities less food and energy -0.2 0.1 2.0 2.0 2.2 0.5 0.3 7.7
New vehicles 0.0 0.0 0.5 0.5 2.0 1.7 1.2 7.6
Used Cars and trucks -0.9 0.5 10.0 10.0 10.5 0.2 -1.5 31.9
Apparel -0.7 -0.3 0.3 0.3 0.7 0.0 0.4 4.2
Medical Care Commodities -0.7 0.1 0.6 0.6 -0.4 0.2 -0.2 -2.5
Services less energy services 0.2 0.4 0.5 0.5 0.4 0.3 0.0 2.7
Shelter 0.2 0.3 0.4 0.4 0.5 0.4 0.2 2.8
Transportion Services -0.1 1.8 2.9 2.9 1.5 -1.1 -2.3 4.6
Medical Care Services 0.5 0.1 0.0 0.0 0.0 0.3 0.3 1.0
It is good to keep in mind that there are many
investors on the other side of the debate. These
investors are concerned that the rising prices are
a direct consequence of federal stimulus, and may
be longer lasting. To their credit, the entire business
world has been waiting for months for any sort of
proof that this inflation is temporary in the overall.
After all, the Federal Reserve made a bold decision
to focus on employment and growth, placing less
emphasis on curbing inflation. The recent data,
though, may give the inflation alarmists some food for
thought. It is no coincidence that inflation has begun
to cool just as commodity prices have started to
fall. A fair degree of inflation was driven by the rapid,
unsustainable appreciation of various asset classes
and production inputs. We already see that many of these prices, driven by supply chain disruptions, are beginning to recede. Time will tell what actions
are taken by the Federal Reserve to “control” inflation, but we do have current evidence that prices in many sectors are moderating.

TAX PROPOSALS
To help pay for the recent ambitious infrastructure bills
that have been proposed, a series of tax hikes are on
the table. These include an increase in the top marginal
corporate tax rate, which would go from 21% to as high
as 26.5%, according to a recent proposal in the House of
Representatives.
TOP MARGINAL CORPORATE TAX RATE
60%
Eisenhower Johnson
50
Kennedy
Truman
40
Nixon
Carter
Ford
Reagan
Corporate tax rate
Proposed increase
Clinton
Trump
The proposal includes moving from a flat tax to a
progressive one. The first $400,000 would be taxed
at 18% and any income above that, up to $5 million,
would be taxed at the 21% that we have now. On income
exceeding $5 million, the rate would increase to 26.5%.
30
20
Coolidge
FDR
GHW Bush
GW Bush
Obama
26.5%
Biden
Changes have been proposed for individual tax payers
as well. For individuals, the basic top income-tax rate
would increase from 37% to 39.6%, with that top bracket
starting at $400,000 for individuals and $450,000 for
married couples. Individuals making over $5M in income
also get a 3% bonus tax. The plan would also increase
the long term capital gains and dividends rate to 25%, up
from the current 20%.
10
Wilson
Taft
0
Harding
Hoover
1910 1920 1930 1940 1950 1960 1970 1980 1090 2000 2010 2020
Source: "Top marginal corp. tax rate" chart; Capitol Group, Strategas. As of 9/23/2021. Tables below;
Single filers / Married filers; https://www.atlanticwp.com
Married Filing Jointly
Single Filers
2021 2022
2021 2022
Tax Rate Taxable Income Tax Rate Taxable Income Tax Rate Taxable Income Tax Rate Taxable Income
10% $0-$19,900 10% 10% $0-$9,950 10%
12% $19,901-$81,050 12%
NO CHANGE
12% $9,951-$40,525 12%
NO CHANGE
22% $81,051-$172,750 22% 22% $40,426-$86,375 22%
24% $172,751-$329,850 24% 24% $86,376-$164,925 24%
32% $329,851-$418,850 32% $329,851-$400,000 32% $164,926-$209,425 32% $164,926-$200,000
35% $418,851-$628,300 35% $400,001-$450,000 35% $209,426-$523,600 35% $200,001-$400,000
37% $628,301+ 39.6% $450,001+ 37% $523,601+ 39.6% $400,001+

SOCIAL SECURITY CHALLENGES
2021
Q3
IN REVIEW
Every year the trustees of the Social Security
and Medicare trust funds report on the current
and projected financial status of the programs.
This year’s conclusion is clear, Social Security is
in worse shape than we thought. The program’s
Trust Fund for retirement and survivors benefits
is now expected to be insolvent by 2033, a year
earlier than anticipated.
According to the annual report, its finances have
been “significantly affected” by the pandemic
and 2020 recession, in addition to a rapidly aging
population.
The ratio between contributors and beneficiaries
has been shrinking for decades. In 1940, shortly
after Social Security was implemented, there
were about 159 workers for every Social Security
recipient. This ratio fell rapidly and was less than
10 workers per beneficiary by 1955. For the last
50 years it has been under 5 and today, there is
just about 2.5 workers per beneficiary.
Source: Social Security Board of Trustees, U.S. Global Investors
In the year 2034, a year earlier than previously expected, Americans age 65
and over will outnumber those 18 and under, according to Census Bureau
estimates. The baby boom of the 1950s and 1960s has yet to be repeated
and Americans are having less children in general.
It’s believed that around 40% of older Americans depend on Social Security
as their only source of income in retirement. Next year’s Social Security
cost-of-living adjustment is expected to be above 6%, the largest increase
since the early 1980s.
Unless drastic action is taken, Social Security as we know it has a very
uncertain future.
The importance of contributing to some sort of retirement plan has never
been greater. Even if Social Security is there for you when you retire,
you most likely will not want to live off of it’s benefit alone. We cannot
emphasize enough the importance of starting early and planning ahead.
You can use the chart in the Financial Planning section of this Review to
determine if you are saving enough to reach your retirement goals.
THE IMPORTANCE OF
CONTRIBUTING TO SOME
SORT OF RETIREMENT PLAN
HAS NEVER BEEN GREATER.

INVESTMENT
MANAGEMENT
PHILOSOPHY
The complex, ever-changing investment world of today
requires an investment process that is overseen by a team
of experienced investment professionals. Global capital
markets present investors with a host of challenges due to
the combination of an overwhelming amount of information
to analyze and the endless supply of conflicting opinions and
narratives surrounding financial markets. The time and expertise
required to perform in-depth investment research and to make
timely and informed portfolio management decisions requires
both a clear investment process and an experienced investment
team to implement the process.
An old adage states that there is accomplishment through
many advisors. We agree and embrace a variety of investment
perspectives through our investment committee. Our investment
philosophy is well grounded in global macro-economic analysis.
Investment ideas are carefully vetted through a process which
incorporates the diverse range of investment backgrounds
within our firm. This process of multifaceted analysis ensures
that only the strongest investment ideas survive. We are
committed to striking the right balance between risk and
return through managing global, multi-asset class investment
portfolios.
INDEPENDENCE &
CLIENT FOCUS
DIVERSIFICATION
TOP-DOWN, THEMATIC
APPROACH
PERFORMANCE WITH
LIQUIDITY
VARIED INVESTMENT
PERSPECTIVES
OPTIMIZATION OF
EXPENSES AND TAXES
THE INVESTMENT PROCESS
ASSESSMENT OF GLOBAL
ECONOMIC & INVESTMENT
ENVIRONMENT
ASSESS & ANALYZE
THEMES
RESEARCH INVESTMENT
VEHICLES TO FIND
EFFECTIVE IMPLEMENTATION
IDENTIFY
OPPORTUNITIES
STRATEGIC ASSET
ALLOCATION -
Geographies, Sectors,
Capitalizations
INVESTMENT SELECTION -
Open/Closed End Funds, ETFs, Stocks & Bonds

INVESTMENT COMMITTEE
2021
Q3
IN REVIEW
The Investment Committee meets formally
each quarter, and more frequently if market
conditions warrant, to discuss the state of
the global economy and capital markets and
to assess the current asset allocation and
positioning of our portfolios. There’s an art
to striking the right balance between risk and
return; pursuing that symmetry is the core of
our investment philosophy. We are fiduciaries
and have our interests aligned with our
clients, as we invest alongside them.​Contact
us at investmentcommittee@iwaplan.com
with any questions or concerns.
STEPHEN WAGNER
CEO, Investment Advisor,
CFP ® , CPFA
35+ Years Experience*
VICTORIA BREEN
Investment Advisor &
Financial Planner
40+ Years Experience*
MARTHA LAFF
Investment Advisor,
ChFC ® , CLU ® , CRPC ®
30+ Years Experience*
ANDREW MURTHA
Financial Analyst,
MBA
20+ Years Experience*
BOB CHEATHAM
Financial Planner,
CRPS®, MA
MARGARET MARAPAO
Investment Advisor &
Financial Planner, CFP ®
CHRISTOPHER WAGNER
Investment Advisor &
Financial Planner, CPFA
LAINE MILLER
Investment Advisor &
Financial Planner
DOUG ECKER
Investment Advisor &
Financial Planner, CRPS®
15+ Years Experience*
* Financial services experience. Investment Advisory Services are offered through investment advisor representatives of Integrity Wealth Advisors, a Federally Registered Investment Advisor.
THOUGHTFUL
INDEPENDENT
FIDUCIARIES
Integrity Wealth Advisors has
been committed to helping
individuals, families, and
businesses grow, preserve, and
distribute wealth since 1979

Source: The Importance of Being Earnest, J.P. Morgan Asset Management, 2013.
THE IMPACT OF
SOUND FINANCIAL
PLANNING
Recent Vanguard research 1 shows that an experienced
wealth management team not only adds peace of mind,
but also may add about 3 percentage points of value in
net portfolio returns over time. What does this mean? Your
team has the ability and the time to evaluate your portfolio
investments, meet with you to discuss objectives, and
help get you through tough markets. All of these factored
together potentially add value to your net returns (returns
after taxes and fees) over time. But the most interesting part
of this research is that it shows that financial planning and
financial coaching contributed to the greater majority of the
added net 3% in net portfolio returns.
Retirement landscape
THE INDEPENDENCE PLAN
EQUATION
The retirement equation
A SOUND INDEPENDENCE (RETIREMENT) PLAN
By making the most of the things that you can control, you can be more prepared
for the things that you cannot control. Planning for “what if” situations will improve
your ability to be financially independent and build towards a plan that brings you
comfort and peace of mind.
TOTAL
CONTROL
Asset
allocation
and
location
It’s important to realize how valuable making sound financial
planning decisions is and that value is added by your
financial planning team. As investors, our emotions can be
our worst enemy, especially when the markets are volatile,
and guidance from a “behavioral coach” can save us from
panic-selling and abandoning long-term financial plans.
Numerous studies demonstrate that advisors can have a
huge impact on investor finances, but it’s hard to say if these
findings have been recognized and understood by everyday
investors.
DREAM.
PLAN.
ENJOY. Source:The
Saving vs.
spending
Employment
earnings
and duration
SOME
CONTROL
INDEPENDENCE
Longevity
Importance of Being Earnest, J.P. Morgan Asset Management, 2013.
Market
returns
Policy
regarding
taxation,
savings and
benefits
OUT OF
YOUR
CONTROL

ANNUAL SAVINGS NEEDED IF STARTING TODAY
MODEL ASSUMPTIONS:
Pre-retirement investment return: 5.75%
Post-retirement investment return: 5.0%
Inflation rate: 2.0%
Retirement age:
• Primary earner: 65
• Spouse: 62
Years in retirement: 30
CURRENT HOUSEHOLD INCOME
$30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 125,000 $150,000 $175,000 $200,000 $250,000 $300,000
Current
age
Checkpoint (x current household income)
25 7% 7% 8% 8% 9% 10% 11% 11% 12% 13% 14% 15% 16% 17%
30 9% 10% 10% 11% 12% 13% 14% 14% 15% 17% 18% 19% 20% 21%
35 12% 12% 13% 14% 15% 17% 18% 18% 20% 22% 23% 24% 26% 27%
40 16% 17% 17% 18% 21% 22% 24% 25% 26% 29% 31% 32% 35% 37%
45 22% 23% 24% 25% 28% 31% 33% 34% 37% 40% 43% 45% 48% 51%
50 32% 34% 35% 37% 42% 46% 48% 50% 54% 59% 63% 66% 71% 75%
HOW TO USE:
• Go to the intersection of your current age and your closest current household income.
• This is the percentage of your current household incometo contribute annually going forward if you have $0 saved for retirement today.
• Example A: 40-year-old with household income of $50,000 and $0 saved for retirement today may need to save 17% every year until retirement.
• Example B: 40-year-old with household income of $100,000 and $0 saved for retirement today may need to save 25% every year until retirement.
IMPORTANT THINGS YOU NEED TO KNOW:
• Values assume you would like to maintain an equivalent lifestyle in retirement.
• Household income is assumed to be gross income (before taxes and savings).
Source: J.P. Morgan. This chart is for illustrative purposes only and must not be relied upon to make investment decisions. J.P. Morgan’s model isbased on a blend of J.P. Morgan Asset Management’s (JPMAM) proprietary Long-
Term Capital Market Assumptions (first 10 years) and equilibrium returns, and an 80% confidence level in retirement. Household income replacement rates are derived from an inflation-adjusted analysis of: Consumer Expenditure
Survey (BLS) data (2013-2016); Social Security benefits using modified scaled earnings in 2019 for a single wage earner at age 65 and a spousal benefit at age 62 reduced by Medicare Part B premiums.
Consult with a financial professional for a more personalized assessment. Allocations, assumptions and expected returns are not meant to represent JPMAM performance. Given the complex risk/reward tradeoffs involved,
we advise clients to rely on judgment as well as quantitative optimization approaches in setting strategic allocations. References to future returns for either asset allocation strategies or asset classes are not promises or even
estimates of actual returns a client portfolio may achieve.

Data / statistics cited are provided by the Federal Reserve Bank of St. Louis.
The S&P 500 Index or the Standard & Poor's 500 Index is a market-capitalization-weighted index of the 500 largest U.S. publicly traded companies. The S&P
500 is a float-weighted index, meaning company market capitalizations are adjusted by the number of shares available for public trading. Investors cannot
invest directly in an index. Note: Investors cannot invest directly in an index. These unmanaged indices do not reflect management fees and transaction
costs that are associated with most investments.
The MSCI World ex USA Index captures large and mid cap representation across 22 of 23 Developed Markets (DM) countries* – excluding the United States.
With 1,012 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country.
The Barclays Capital U.S. Aggregate Bond Index is the most common index used to track the performance of investment grade bonds in the U.S.
The opinions expressed in this program are for general informational purposes only and are not intended to provide specific advice or recommendations
for any individual or on any specific security. It is only intended to provide education about the financial industry. To determine which investments may be
appropriate for you, consult your financial advisor prior to investing. Any past performance discussed during this program is no guarantee of future results.
Any indices referenced for comparison are unmanaged and cannot be invested into directly. Investing involves risk and possible loss of principal capital;
please seek advice from a licensed professional.
Integrity Wealth Advisors is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Integrity Wealth
Advisors and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Integrity Wealth Advisors unless a client
service agreement is in place.
Vanguard research study; Source: Francis M. Kinniry Jr., Colleen M. Jaconetti, Michael A. DiJoseph, and Yan Zilbering, 2014. Putting
a value on your value: Quantifying Vanguard Advisor’s Alpha. Valley Forge, Pa.: The Vanguard Group.
Securities offered through LPL Financial, Member FINRA/SIPC. A separate entity from Integrity Wealth Advisors.