2021 New Sar Template

2020 Semi-Annual Review
Heritage Financial Consultants, LLC
Prepared Especially For
Client
John G. McCarthy, III

Partner
410-771-5677
John.McCarthy@LFG.com
Heritage Financial Consultants, LLC ● 307 International Circle Suite 390 ● Hunt Valley, MD 21030 ● Ph: 410-771-5677 ● Fax: 410-785-0044
Please secure this information with your other financial paperwork.
John G. McCarthy, III is a registered representative of Lincoln Financial Advisors Corp. Securities and investment advisory services offered through Lincoln Financial Advisors Corp., a broker/dealer and registered investment advisor. Insurance
offered through Lincoln affiliates and other fine companies. Heritage Financial Consultants is not an affiliate of Lincoln Financial Advisors Corp. CRN-2521973-043019
Client
John G. McCarthy, III Robert H. Ellrich, CFP®

410-771-5677 410-771-5678
John.McCarthy@LFG.com Robert.Ellrich@LFG.com
Heritage Financial Consultants, LLC ● 307 International Circle Suite 390 ● Hunt Valley, MD 21030 ● Ph: 410-771-5677
Client
John G. McCarthy, III Andrew S. Horowitz, CFP®, CRPC

410-771-5677 410-771-5698
John.McCarthy@LFG.com Andrew.Horowitz@LFG.com
Client

410-771-5677
John G. McCarthy, III & Peter D. Maller are registered representatives of Lincoln Financial Advisors Corp. Securities and investment advisory services offered through Lincoln Financial Advisors Corp.,
a broker/dealer and registered investment advisor. Insurance offered through Lincoln affiliates and other fine companies. CRN-2521973-043019
Client

410-771-5677
John G. McCarthy, III is a registered representative of Lincoln Financial Advisors Corp. Securities and investment advisory services offered through Lincoln Financial Advisors Corp.,
Client
John G. McCarthy, III Peter D. Maller, MBA, CFP®

410-771-5677 410-771-5660
John.McCarthy@LFG.com Peter.Maller@LFG.com
Maller Wealth Advisors, Inc. ● 307 International Circle Suite 530 ● Hunt Valley, MD 21030 ● Ph: 410-771-5660
John G. McCarthy, III & Peter D. Maller are registered representatives of Lincoln Financial Advisors Corp. Securities and investment advisory services offered through Lincoln Financial Advisors Corp.,
Table of Contents
Discussion Topics & Market Update 1
Performance Review 2
Risk Management 3
Supporting Documents 4
Investment Disclosures
The following report is a diagnostic tool intended to review your current financial situation and For Variable Annuities and Variable Life Insurance: The values shown on your statement for any Variable
suggest potential planning ideas and concepts that may be of benefit. This report is provided for Annuity or Variable Life Insurance products may not represent the actual cash values you or your
informational purposes and as a courtesy to the client, and may include assets that Lincoln beneficiaries may receive upon withdrawal, surrender or the payment of a death benefit. The report shows
Financial Advisors does not hold on behalf of the client and which are not included in our firm’s the number and value of units that you own in a particular investment portfolio within the variable
books and records. For insurance policies held outside of our firm, please contact the issuing product. Because variable products impose fees and expenses associated with the product, the unit value
company‘s customer service department directly. on any given day will not be the same as the share price for the corresponding investment portfolio.
Likewise, because of those different expenses, unit values for an investment portfolio available in one
Values are as of 12/31/2020. We believe the sources to be reliable, however, the accuracy and variable product will not be identical to those for the same investment portfolio held within another
completeness of the information is not guaranteed. This report may only be used with the source variable product. The values shown may also not reflect monies currently held in a company’s Premium
documents, which are attached and were used to create this consolidated statement. In the event Deposit Fund or other fund created to hold monies prior to investment into the policies. Various fees and
of any discrepancy, the sponsor’s valuation shall prevail. It is important to compare the charges may be deducted against the values shown in this report upon withdrawal, surrender or payment
information on this report with the statement(s) you receive from the custodian(s) for your of a death benefit. Outstanding policy loans will also reduce the cash values received.
account(s). Please note that there may be minor variations due to calculation methodologies. If
you have any questions, please contact your financial advisor. For REITs and Limited Partnerships: The valuation of non−traded REIT and limited partnership
investments is either the initial offering price, an estimated value, or amount invested (provided by the
Performance data quoted represents past performance and does not guarantee future results. The issuer). This information is not intended to reflect the value you may realize if the issuer liquidates the
investment return and principal of an investment will fluctuate so that an investor’s shares when security or if you sell your interests. In addition, this estimated value is reflected in the total value of your
redeemed, may be worth more or less than original cost. The values represented in this report may account.
not reflect the true original cost of the client’s initial investment. The returns illustrated in this
report have been not been calculated by this summary report. These returns have been taken from For Oil & Gas Partnerships: Oil & Gas Partnerships are tax advantaged investments which finance the
the custodian(s) statement or other reporting source. Please see the documents section for the exploration and development of oil and gas reserves. There are significant risks associated with investing
underlying information related to theses calculations. in oil and gas partnerships. There can be no assurance that commercial production of oil and gas reserves
will be attained. Factors that could cause actual results to differ materially from expectations include, but
This report is based partially upon information and assumptions provided by you (the client). This are not limited to natural gas and oil prices, industry conditions, drilling results, uncertainties in
report provides broad and general guidelines on the advantages of certain financial planning estimating reserves, uncertainties in estimating future productions and availability of drilling rigs. Oil
concepts and asset allocation techniques and does not constitute a recommendation of any and gas partnerships are not suitable for investors in low marginal tax rates or who cannot assume the
particular technique. We recommend that you review your plan annually, unless changes in your total loss of an investment in the partnership. Oil and gas partnerships have suitability requirements and
personal or financial circumstances require more frequent review. The term "plan" or "planning," are for sophisticated investors only. Units or shares of these types of investments may fluctuate in value
when used within this report, does not imply that a recommendation has been made to implement so that at redemption may be worth more or less than the original amount invested.
one or more financial plans or make a particular investment. Nor does the plan or report provide
legal, accounting, financial, tax or other advice. Rather, the report and the illustrations therein The cash and securities – such as stocks and bonds – held by a customer at a financially troubled
provide a summary of certain potential financial strategies. You should consult your tax and/or brokerage firm are protected by SIPC. Among the investments that are ineligible for SIPC protection are
legal advisors before implementing any transactions and/or strategies concerning your finances. commodity futures contracts (unless defined as customer property under the Securities Investor
Protection Act) and currency, as well as investment contracts (such as limited partnerships) and fixed
Additionally, this report may not reflect all holdings or transactions, their costs, or proceeds annuity contracts that are not registered with the U.S. Securities and Exchange Commission under the
received by you. Prices that may be indicated in this report are obtained from sources we consider Securities Act of 1933. It is important to recognize that SIPC does not work the same way as the Federal
reliable but are not guaranteed. Past performance is no guarantee of future performance. The Deposit Insurance Corporation in terms of blanket protection of losses. SIPC coverage does not protect
information contained in this report is not written or intended as financial, tax or legal advice. The market values of assets and does not apply to insurance products and some other assets reported in the
information provided herein may not be relied on for purposes of avoiding any federal tax template; for more information about SIPC coverage and its limitations, visit www.sipc.org.
penalties. You are encouraged to seek financial, tax and legal advice from your professional
advisors. The asset style/categories, target allocations, performance and other information is provided by the source
may be classified or calculated differently than similar information reported elsewhere in this report. The
The asset style/categories, target allocations, performance and other information is provided by information extracted from the sponsor reports is not complete without the other information, including
the source may be classified or calculated differently than similar information reported elsewhere all disclosure provided by the sponsors that are included in the supporting document section.
in this report. The information extracted from the sponsor reports is not complete without the
other information, including all disclosure provided by the sponsors that are included in the
supporting document section.
Investment Disclosures
We believe the sources to be reliable, however, the accuracy and completeness of the information is Account Performance - Return of account for selected time period (Beginning Date to Ending Date) as
not guaranteed. In the event of any discrepancy, the sponsor’s insurance policy shall prevail. This provided by omnisource reports or directly from the underlined manager located in supporting
report may only be used with the source documents, which are attached and were used to create this documents section. Past performance is not guaranteed for future results. All performance shown in
consolidated statement. It is important to compare the information on this report with your this report is net of all management fees (Heritage and underlining manager).Diversification through an
insurance policy that you received from the issuing company. Please read your insurance policy asset allocation plan is a useful technique that can help reduce overall portfolio risk and volatility.
carefully for policy information regarding terms, fee structure, and other important information. If Diversification neither ensures a profit nor protects against a loss.
you have any questions, please contact your agent.
Atlas Cash Distributions - Income payments from oil and gas production are shown as net revenue to
This report is provided for informational purposes and as a courtesy to the customer, and may the partner in every given year.
include assets that Lincoln Financial Advisors does not hold on behalf of the customer and which
are not included in our firm’s books and records. For insurance policies held outside of our firm, Current % - Current allocation based on date reported.
please contact the issuing company‘s customer service department directly.
Current Value - Current Value based on date reported.
SIPC coverage does not apply to term policies.
Market Performance - Return of various index's for selected time period as reported in the supporting
The performance of an unmanaged index is not indicative of the performance of any particular documents section.
investment. An investor cannot invest directly in an index. The performance of an index assumes no
transaction costs, taxes, management fees or other expenses. Past performance is no guarantee of Net Cash Flows - Contributions less withdrawals
future results. The S&P 500 Index is considered a reflection of U.S. large company stocks. The
MSCI EAFE Index consists of stocks in developed countries globally (Europe, Australasia, Far East Target % - Target allocation derived mutually from your investment strategy.
except the United States and Canada) and represents international investing. The Barclay’s
Aggregate Bond Index is a broad representation of the investment-grade fixed income market in the Real Estate Valuation/Outside Accounts- Values provided directly by the client including real estate as
U.S. The Russell 2000 Index represents the 2000 smallest company stocks in the Russell 3000 well as assets held away from Lincoln Financial advisors have not been verified or validated in any
Index, and serves as a leading benchmark for the small cap market. Diversification through an asset manner by Lincoln Financial Advisors or its representatives. Any real estate values may not be
allocation plan is a useful technique that can help reduce overall portfolio risk and volatility. considered for accreditation qualification.
Diversification neither ensures a profit nor protects against a loss.
Discussion Topics & Market
Update
Discussion Topics
1
10
Beneficiary Review
Client 1
Account Registration/Number Company Name Primary Beneficiaries - % Contingent Beneficiaries - %
1.
2.
3.
Client 2
Account Registration/Number Company Name Primary Beneficiaries - % Contingent Beneficiaries - %
1.
2.
3.
Oil & Gas Partnerships
Atlas Energy
Program Name Distribution Start Year Total Cash Return % Annualized Cash Return Est. Total Return w/ Tax Savings Wells Distributing % Distribution Mode Last Distribution
1) Atlas Resources Series 28-2010 LP Mar-11 34.25% 4.85% 78.39% 26% N/A Oct-17
2) Atlas Resources Series 34 2014 LP Jan-15 25.79% 5.74% 69.88% 86% Monthly Feb-19
3) Atlas Eagle Ford 2015 LP Feb-17 39.24% 18.71% 77.28% 100% Monthly Mar-19
U.S. Energy
Program Name Distribution Start Year Total Cash Return % Annualized Cash Return Est. Total Return w/ Tax Savings Wells Distributing % Distribution Mode Last Distribution
1) 2010 Alpha Energy Partners B Sep-11 38.67% 5.52% 81.88% 100% Quarterly Jan-19
2) 2011 Alpha Energy Partners A Aug-12 34.81% 5.80% 77.75% 100% Quarterly Jun-18
3) 2011 Alpha Energy Partners B Aug-12 34.07% 5.68% 76.87% 100% Quarterly Jun-18
4) 2012 Alpha Energy Partners A Jan-13 30.39% 5.03% 73.11% 100% Quarterly Jan-19
5) Genesis Drilling Program I Jun-13 17.49% 3.24% 55.16% 100% Quarterly Sep-18
6) Genesis Drilling Program II Jun-13 18.92% 3.15% 55.39% 100% Quarterly Sep-18
7) Genesis Drilling Program III Apr-14 9.29% 1.86% 45.57% 100% N/A Dec-15
8) Genesis Drilling Program IV Jun-14 8.04% 1.61% 44.32% 100% N/A Dec-15
9) Genesis Drilling Program V Sep-15 4.35% 1.09% 4.40% 100% N/A Jun-16
10) USEDC 2016 Drilling Fund Sep-17 16.57% 10.87% 59.56% 83% Quarterly Jan-19
11) USEDC 2017 Drilling Fund A Nov-18 2.13% N/A 43.25% 21% Quarterly Dec-18
12) USEDC 2018 Drilling Fund A N/A N/A N/A N/A N/A N/A N/A
Disclosure: The Total Tax Benefit for USEDC assumes the maximum federal rate and maximum New York State rate, per Private Placement Memorandum
1st Quarter Market Update
As we enter the second quarter of 2021, let’s take a look back over the eventful last 12 months. We believe a vital tool in managing money is a respect and knowledge of market history. It is
helpful in examining market movements during volatile periods to test our principles and perspectives.
In January and February of 2020, media reports surfaced regarding a newly-observed virus in China. Markets held up reasonably well until the middle of March. Then, it suddenly turned ugly as
the world came to realize that we were fighting a spreading menace that would result in a global lockdown.
Markets are very volatile. It feels bad, but it’s okay.
During high volatility, the New York Stock Exchange imposes “circuit breakers” to help maintain orderly markets. Trading is halted if the market declines over 7% in one session. On March 16th,
2020, trading was halted shortly after the open. This was the third halt in six trading days. The Dow fell 13% that day, the second largest percentage drop since WWII. The NASDAQ index fell
12%, the largest on record.
With these significant losses, it looked bad. The decline would continue for another week, totaling a 34% loss for the S&P 500. Then, on March 24th, markets stabilized and started trending up,
aided by the prospect of massive stimulus by international governments. By August of 2020, markets would recover and reach new highs with advances continuing through the end of the year.
We are not minimizing the pandemic. We are mindful of the human and financial losses COVID-19 has caused people around the world. These losses go far beyond money. We are, however,
always aware that deep equity declines, by lowering the price of quality investments, often sow the seeds of unexpected and powerful recoveries.
Media enriches our lives, but has its limits in building portfolios.
Over the years, media companies have enhanced our lives with information and entertainment. They were even more present during the quarantine, allowing us to both remain connected and
provide escape. That being said, there is a challenging side. During the declines brought on by the pandemic, there were seemingly endless reports on the losses. There were also numerous
economists and market professionals that sensationalized the potential worst-case-scenarios.
These economists do not know you, your portfolio or your circumstances. Also, a truly deep analysis can’t easily fit between commercials nor would it likely produce good ratings. For that reason,
while we enjoy Netflix or Disney+, we prefer to make our most-important financial decisions with the television turned off.
Diversification is key to success.
Diversification goes beyond just a mix of stocks and bonds. It is important to have a proper mix of different kinds of equities. As the recovery began, growth companies that provided computer
and medical technologies surged. Value stocks like financials, transportation and hospitality were largely left behind. In 2020, growth stocks outperformed value by one of the largest margins in
market history.
Once the development of vaccines was announced, value stocks took the lead with the potential reopening of the world. In the first quarter of 2021, value led growth by a large margin. Many tried
to predict and time these massive shifts likely without success. We believe the best result may come from exposure to several asset classes, rather than trying to time the shifts. Building wealth
doesn’t necessarily come from the buying and selling. It comes from intelligent allocation and patience.
Domestic Equities: Building on the strong returns of last year, the S&P 500 rose 6.2% in the first quarter of 2021 as the rally continued to spread beyond the large-tech stocks. Smaller company
stocks, which perhaps have the most to gain from a reopening, jumped 12.7%.
International Equities: Foreign stocks also benefited from the potential return to a more normal global economy as the percentage of people vaccinated rose. The results were, however,
somewhat restrained. The MSCI EAFE index, a gauge of international developed market stocks, increased 3.5%. Emerging markets edged up 2.3% for the quarter.
Fixed-Income: As the pandemic threatened economic activity, the Fed quickly reduced interest rates along with other actions to help stabilize the economy. This provided a tailwind for bond
returns in 2020. Up until this point in 2021, the opposite has been the case as business activity rose and the unemployment rate declined. Some wondered how long the Fed would and could keep
rates low. The Barclays Aggregate, a measure of the broad bond market, dropped 3.4% in the first quarter. Bear in mind that for the trailing 12 months, bonds were still positive by 1%.
We’re in this together.
As the past year has shown, both the world and financial markets can be volatile and unpredictable. Previous events, while perhaps not as unsettling as this one, like Brexit, the European debt
crisis and many others have shown, we as investors can, and have, come through them. What is key is to have the correct principles and discipline.
While it is gratifying to see the world come through this and investors rewarded so handsomely, it is important to remember not all of this is behind us. We must still navigate the likely setbacks
and reversals to the economy and markets that may come. We must continue to make the transition from an economy that is dependent on governmental support to one that can thrive on its own.
None of this will be easy. It never is. That isn’t to say we are pessimistic – far from it. We just have continued work to do.
We will be here to listen, work with you and adjust accordingly.
We are always here if you need us.
CRN-3536297-040621

Sources of data- Wall Street Journal, CNBC, FactSet, S&P Global, MSCI, Russell, Bloomberg. The performance of an unmanaged index is not indicative of the performance of any particular investment. It is not possible to invest directly in any index. Past performance
is no guarantee of future results. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. Three-year performance data is annualized. Bonds have
fixed principal value and yield if held to maturity and the issuer does not enter into default. Bonds have inflation, credit, and interest rate risk. Treasury Inflation Protected Securities (TIPS) have principal values that grow with inflation if held to maturity. High-yield
bonds (lower rated or junk bonds) experience higher volatility and increased credit risk when compared to other fixed-income investments. REITs are subject to real estate risks associated with operating and leasing properties. Additional risks include changes in
economic conditions, interest rates, property values, and supply and demand, as well as possible environmental liabilities, zoning issues and natural disasters. Stocks can have fluctuating principal and returns based on changing market conditions. The prices of small
company stocks generally are more volatile than those of large company stocks. International investing involves special risks not found in domestic investing, including political and social differences and currency fluctuations due to economic decisions. Investing in
emerging markets can be riskier than investing in well-established foreign markets. The MSCI EAFE Index is designed to represent the performance of large and mid-cap securities across 21 developed markets, including countries in Europe, Australasia and the Far
East, excluding the U.S. and Canada. The Russell 2500 Index measures the performance of the 2,500 smallest companies (19% of total capitalization) in the Russell 3000 index. The S&P 500 index measures the performance of 500 stocks generally considered
representative of the overall market. The Wilshire REIT Index is designed to offer a market-based index that is more reflective of real estate held by pension funds.
Performance Review
Performance Overview
For the period December 31, 2020 to _____________
Non-Qualified Assets
Account Registration Account Type Model Platform Account # Beginning Value Net Cash Flows Ending Value Performance
$0
$0
$0
$0
$0
*Current rider value of $XXXXX Non-Qualified Total $0 $0 $0 #DIV/0!
Qualified Assets
$0
$0
$0
$0
$0
*Current rider value of $XXXXX Qualified Total $0 $0 $0 #DIV/0!
2021 Market Performance

BLENDED Model:
S&P 500:
Russell 2000:
MSCI EAFE:
HFRX Equity Hedge:
Alerian MLP:
MSCI US REIT:
S&P Municipal Bond Short:
BloomBarc US 1-5 Yr Corporate:
Morningstar Multisector Bond:
BloomBarc Global Agg Ex-US:
Total Assets $0
Total YTD Gains $0
Descendant Assets
$0
$0
$0
$0
$0
Descendant Assets Total $0 $0 $0 #DIV/0!
Total YTD Gains $0
Other Assets
Account Registration Account Type Model Platform Account # Initial Investment Return of Capital YTD Distributions YTD Performance
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
Other Assets Total $0 $0 $0 #DIV/0!
Disclosure: This information is not complete without the important disclosures listed in the investment disclosure section of this report. In addition, all of the source data on this page can be found in the supporting documents section of the report.
Risk Management
Risk Management Summary
Life Insurance
Insurance Company Insured/Owner Policy Number Policy Type Effective Date Conversion Deadline Benefit Amount Annual Premium Premium Mode
Client Total: $0 $0.00
Client Total: $0 $0.00
Long-Term Care Insurance

Insurance Company Insured Policy Number Daily Benefit Benefit Period Benefit Riders Elimination Period Annual Premium Premium Mode
Totals: $0.00
Supporting Documents

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2020 Semi-Annual Review

Heritage Financial Consultants, LLC

Prepared Especially For

John G. McCarthy, III

Prepared Especially For

John G. McCarthy, III Robert H. Ellrich, CFP®

Prepared Especially For

John G. McCarthy, III Andrew S. Horowitz, CFP®, CRPC

Prepared Especially For

John G. McCarthy, III

Prepared Especially For

John G. McCarthy, III

Prepared Especially For

John G. McCarthy, III Peter D. Maller, MBA, CFP®

Discussion Topics & Market Update 1

Markets are very volatile. It feels bad, but it’s okay.

Diversification is key to success.

We’re in this together.

We will be here to listen, work with you and adjust accordingly.

We are always here if you need us.

2021 Market Performance

Client Total: $0 $0.00

Client Total: $0 $0.00

Long-Term Care Insurance

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