DelphiWMG 2023 Annual Report

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D E L P H I W E A LT H M A N A G E M E N T G R O U P

To Our Delphi Family — During 2023, as we gathered to reflect on our Sixth Anniversary, Delphi began an endeavor to renew the internal values that drive our team to create better financial outcomes for the clients and families we cherish.

We established our company to offer the highest levels of service and empathy. And we remain forever dedicated to protecting each relationship, reaching well beyond numbers and percentage points as we share our friendship and the insight of our experience.

In 2023, we continued to expand by thoughtful design, mentoring advisors and staff aiming to grow together internally, responsibly guiding your future. Our team took significant time in September articulating team values and what it means to live by those values every day. This investment of time is just a part of our commitment to you, allowing Delphi to work productively and with perspective, on your behalf.

As we recap 2023 and look ahead, we respectfully acknowledge your willingness to work through each step with us. We are optimistic, enthusiastic, and committed to providing you with the answers you’ve earned.

With Sincere Gratitude, Kevin McDermott and John Kane

2023 ANNUAL REPORT

The Questions You Have Am I saving enough to avoid running out of money?

What is the smartest order to pay off our obligations?

Will we be ok to enjoy our retirement?

The Answers You’ve Earned The reward for a lifetime of hard work is peace.

You’d expect an advisor to be responsible with your finances. What may surprise you is how involved we are in the process. Listening. Choosing only the moves that make sense just for you. A wise partnership for the major decisions.

Living fully now doesn’t neglect what’s ahead.

Our offerings allow us to look at the big picture, together. Not only the opportunities just around the corner, but even those further out on your horizon.

Knowing more allows you to travel, be generous and say yes to each day’s chances, knowing we’re working with you to keep your future steady and smart.

Your passions start our planning, and we keep working, behind you and behind the scenes to help protect the progress you’ve earned, together as we go.

The Explanation You’ve Earned.

The Confidence You’ve Earned.

The Observation You’ve Earned.

The Decision You’ve Earned.

The Analysis You’ve Earned.

The Answers You’ve Earned.

D E L P H I W E A LT H M A N A G E M E N T G R O U P

Significant Growth Client Assets Under Management as of 12/31/2023

$619,292,096 $600

$511,907,856 $505,064,000

$500

$330,817,000 $300

I N

M I L L I O N S

$400

$274,290,000

$203,658,000 $200

$100

$0

2017

2018

2019

2020

2021

2022

The source of this growth is primarily from referrals made by our existing clients to their children, family and friends.

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2023

2023 ANNUAL REPORT

Economic and Market Outlook As 2023 began, the outlook was gloomy, and many predicted more pain to come. Markets had just come off a bruising 2022 with both stocks and bonds dropping by double digits. Since March of 2022, the Fed raised interest rates at the fastest pace in forty years to address rampant inflation.

In 2023, the Fed still wasn’t backing down.

They declared they were ready to increase rates further, if necessary.

According to the Wall Street Journal, strategists at investment banks and even musical artist Cardi B. agreed, a recession was coming. It is surprising the nuggets you come across when you read as much as we do.

Even given this sentiment, equity markets pushed higher.

The bad news, however, just kept coming. In March, rising investment losses coupled with fleeing depositors led to some banks being seized by regulators. Stocks sold off but recovered as the failures were contained.

Soon another threat surfaced. Interest rates spiked over fears bond markets would be overwhelmed by the amount the government was issuing. Fearing the beginning of another rout, stock and bond markets erased much of their gains.

Again, markets struggled back.

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2023 Returns and Economics Despite the pessimism, markets turned in a banner year. Or perhaps it was partially because of the pessimism, since our experience tells us when the broad consensus is for one outcome, there is often a surprise coming.

Inflation, that was running over 8%, has declined to a current 3.1%. Bond yields, which move inversely to price, declined from over 5% to 3.9% in the fourth quarter. For 2023 bonds, as measured by the Barclays Aggregate*, rose 5.5% for the year.

A recession, which many believed was unavoidable, began to look less likely. The Dow Jones Industrial Average** jumped over 16% for the calendar year. The S&P 500*** bolted over a 26% gain.

The S&P return comes with a bit of a caveat. The return of the index was largely driven by just seven high-volatility, tech stocks.

Still, the average stock still produced solid returns.

As inflation and interest rates declined, other asset classes joined the party. Smaller companies, which are often seen as more susceptible to higher interest rates, surged in the fourth quarter.

They ended up 17% for the year. International stocks turned in similar returns, up 18%.

AN ACKNOWLEDGMENT — While this doesn’t directly have much to do with market movements of 2023, we wanted to acknowledge someone special.

Charlie Munger, master investor and Vice-Chairman of Berkshire Hathaway, passed away recently, just short of his 100th birthday. Over the years, we listened to him carefully and quoted him often. He was wise and didn’t mince words. We will miss him. Thank you, Charlie. *Bloomberg Barclays Aggregate Bond Index includes government Treasury securities, corporate bonds, mortgage-backed securities (MBS), asset-backed securities (ABS), and munis to simulate the universe of bonds in the market. It tracks bonds that are of investment-grade quality or better. **Dow Jones Industrial Average is considered representative of the general state of the stock market.

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***S&P 500 Index is considered a reflection of the large capitalization U.S. stock market. It is the benchmark against which judging the overall performance of money management is used.

2023 ANNUAL REPORT

Our Approach to Market Advances and Declines Market movements, particularly over the last few years, have made several things clear.

Markets are risky and usually defy short-term predictions.

It has always been that way. That doesn’t mean we are helpless.

We believe that successful investing is about managing risk; not avoiding it. This is done by the careful examination of goals and prudent risk-aware portfolio construction. It involves mathematics, discipline, and a healthy dose of common sense. This process can manage the inevitable “THE BIG MONEY COMES highs and lows to help get you NOT FROM THE BUYING where you want to go, rather than AND SELLING, BUT FROM wherever you happen to wind up.

THE WAITING.”

We’re Right Here While we are gratified by the generous rewards that principled investing brought in 2023, we are not letting our guard down. There will be great years and challenging ones to come. We will strive to be disciplined and restrained in both.

We play the long game.

“IT IS REMARKABLE HOW MUCH ADVANTAGE WE HAVE TRYING TO BE CONSISTENTLY NOT STUPID, RATHER THAN TRYING TO BE HIGHLY INTELLIGENT.” “PICK YOUR CLIENTS AS YOU WOULD PICK YOUR FRIENDS.” - Charlie Munger, on investing, business, and life

We appreciate the opportunity to serve you and your family. We will be in touch to review the year and discuss any adjustments that need to be made. In the meantime, if there is anything you need, just let us know.

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D E L P H I W E A LT H M A N A G E M E N T G R O U P

Get the Answers You’ve Earned from our Team Finding a partner whose experience and capabilities match your vision is a key to feeling comfortable about the future. After all, your financial obligations and dreams are personal and require careful and consistent advice.

Whether you’ve known all of us for years, or are most familiar with your own advisor, here’s a chance to learn more about each fiduciary* on our team, ready to help guide you through your long-term goals.

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*To the extent that I am providing you with investment advisory services, including either financial planning services or ongoing investment advice as part of an LFA investment advisory program (i.e., fee-based managed account) pursuant to a written agreement and related disclosures that describes this investment advisory relationship, I am acting in a fiduciary capacity related to those services under the federal securities laws, in particular the Investment Advisers Act of 1940.

2023 ANNUAL REPORT

KEVIN MCDERMOTT – “I will never forget how

hard you’ve worked, so your interests and hopes guide our plans together.”

Kevin knows preparation is the key to managing finances and making strategic decisions at crucial moments builds stability. Wealth management has been his passion for more than 33 years, with expertise refined through multiple seasons of changing markets.

He may recommend moves to ensure your security in the “slow-go” stage, like gifting specific dollar amounts to family members.

In the “no-go” stage, he works to help clients stabilize their estate plans and make tax-efficient transfer arrangements to loved ones.

He has specific guidance for each stage of your journey toward retirement. Clients in the “go-go” income generating, wealth accumulation stage will maximize retirement contributions.

Sound guidance, backed by research at each phase, helps keep your plan on track.

JOHN KANE – “Each decision impacts your

financial picture, and I want to help you understand exactly how your future can look, taking the smartest steps forward.”

Whether you have never imagined life beyond your career, or have precise goals, John allows you to see the possibilities and weigh the differences. For the past 22 years, he’s been initiating these important conversations.

Tracking accounts and showing multiple options is only a fraction of the process. John listens closely and poses “what if” questions to direct your path

forward. Is downsizing now an option to afford more travel? Will paying off your mortgage really change your monthly expenses?

How will a significant expense now impact your life in your 80’s?

These questions allow you to visualize and prioritize together.

Building your plan one decision at a time is most rewarding for John.

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D E L P H I W E A LT H M A N A G E M E N T G R O U P

DAVID LAYO – “The path to financial security is

analyzing the market objectively during both positive trends and market fluctuations.”

David has been navigating the complex world of financial planning with expertise and calm for more than two decades. Since joining Delphi in 2022, he has been diligently helping clients achieve financial goals while building more secure futures.

Collaborating with the Delphi team, David’s approach instills confidence. It’s rooted in a comprehensive selection of financial instruments, thoughtfully combined to create customized

solutions. Whether working for an individual or small business client, he begins with a genuine interest, actively listening to understand each unique situation. He then works with other key decisionmakers including CPAs, attorneys, family members and the other trusted advisors of his clients.

Working with David, your financial plan should be as unique as your goals and dreams.

FRANK CAPRIOTTI – “This can be an emotional and

personal process. I can educate you through your retirement years, with sound advice at each step.”

As a Certified Financial Planner, Frank looks at all aspects of the financial planning process to help meet your goals and objectives.

Using life insurance plans to pay estate taxes, or gifting strategies to family members, Frank recommends what’s best for your family’s complete picture.

These holistic retirement planning concepts help meet your short term and long-term goals.

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As his experience has grown over the past 17 years, Frank uses market indicators and technology for real time planning and real time impact. His goal is to help you work through the details of social security, leveraging every asset into a comprehensive, sustainable plan.

These actions help ensure your hard-earned wealth will stay within your family.

2023 ANNUAL REPORT

TARA MCHUGH-HOLLISTER – “Meaningful and

enduring relationships foster honest conversations that may lead to financial security.”

With immense experience from one of Pennsylvania’s largest credit unions over the past 19 years, Tara is equipped to evaluate your financial situation and help to build a plan that will evolve with you.

While gathering facts about you and your family, she’s listening for waypoints to direct your financial actions. Each conversation guides her in developing an individualized and holistic plan. Tara strives to

cultivate a relationship by building trust, educating, and answering your questions. In offering guidance for retirement and estate plans, small businesses and business succession, she will walk you through each short-term expense to position you for long-term stability.

Let’s address your wishes and goals as we build a sensible, multi-generational plan.

CJ WINCHOCK – “Delphi has prepared me to share

innovative thinking with my team and my clients. I’ve initiated new planning methods while incorporating timely, traditional approaches for positive outcomes.”

Life-changing events are often the reason to visit Delphi for guidance. Whether you’re newly married and looking for advice on an investment account, starting a new job and need to transfer an existing 401K, purchasing a home and comparing financing options or saving for college or retirement, you’ll find the answers at Delphi.

With access to our complete range of shared knowledge and

technological assets, CJ accesses up-to-the-minute information and interprets the results. He has high level agility within the software to understand and manipulate all available data. With his effortless charm, CJ works well with everyone.

Let’s begin a financial strategy for your life’s transitions.

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Delphi Wealth Management Group Corporate Headquarters

Harrisburg Office

805 Springdale Drive Exton, PA 19341

5 Capital Drive Suite 101 Harrisburg, PA 17110

(484) 928-1700 www.DelphiWMG.com

(717) 980-3686

From Top Left: TJ Hunt Memorial Foundation Golf Outing, A Haven Remembrance Walk, BridgeWay House Golf Outing, SEI Citizens Bank Park Event, Chester County Hall of Fame Dinner, Harrisburg Movie Event, Chester County Food Bank Food Drive, Exton Chamber of Commerce Dodgeball Champions 2023, Jocelyn and Dick Vermeil at Chester County Hall of Fame Dinner, Delphi Team, Delphi Days Donates Bikes to PathWays PA

@DelphiWMG Registered associates of Delphi Wealth Management are registered representatives of Lincoln Financial Advisors Corp. Securities and investment advisory services offered through Lincoln Financial Advisors, a broker-dealer (member SIPC) and registered investment advisor. Insurance offered through Lincoln affiliates and other fine companies. Delphi Wealth Management is not an affiliate of Lincoln Financial Advisors Corp. CRN-6218935-011224