Footnotes & Disclaimers for Quarterly Investment Update



Required Minimum Distributions (RMDs).  The SECURE 2.0 Act resulted in changes to RMDs starting in 2023.  Individuals who own or inherited certain kinds of retirement accounts must distribute RMDs before December 31, 2024.  Those who turn age 73 in 2024 must take their first RMD, which can be delayed until April 1, 2025.  This will result in two RMDs in 2025.  RMDs are subject to income tax in the year of distribution.  Those who inherit retirement accounts may need to take RMDs in the year inherited.  The federal penalty tax for failing to take RMDs on time is 25% of the RMD amount and may be adjusted to 10% of the RMD amount if the error is corrected in a timely manner.

Offer of SEC Disclosure Documents (ADV Part 2A):  The U.S. Securities and Exchange Commission (SEC) requires us to send each advisory client a written offer to deliver Form ADV Part 2A once per year.  Our latest brochure was completed in March 2024.  To request a full copy of the ADV Part 2A, e-mail, call 808-521-4015, or write to Andrews Advisory Associates, LLC, 1188 Bishop Street #1808, Honolulu, HI  96813.  You may also find the information on the SEC website,

Offer of Privacy Notice and Code of Ethics:  Contact our office for a copy.



1    Data as of March 28, 2024. Source: Y-Charts.  Although the information has been gathered from sources believed to be reliable, it cannot be guaranteed.  All indices are unmanaged and assume the reinvestment of all dividends or distributions.  The total return, including reinvested dividends, is shown unless otherwise indicated.  It is not possible to invest directly in an index.

2   DJIA 30 Blue-Chip Stocks - The Dow Jones Industrial Average 30 is an unmanaged index computed by summing the prices of the stocks of 30 blue-chip companies and dividing the total by a value which has been adjusted over many years to account for changing constituents and stock splits. 

3   S&P 500 Large-Cap US Stocks - The Standard & Poor’s 500 Index is an unmanaged market-cap weighted index tracking a representative sample of 500 large-size US companies. The index is divided into economic sectors as determined by the Global Industry Classification Standards (GISC) and maintained by the companies Standard & Poor’s (S&P) and Morgan Stanley Capital International (MSCI).

4   S&P 400 Mid-Cap US Stocks – The Standard & Poor’s 400 is an unmanaged index tracking a representative sample of stocks of 400 mid-size US companies. Historical:  S&P 400 Stock Index 1991-2022 Total Returns, Russell 2000 1979-1990. Ibbotson & Assoc. 1975-1978.

5   S&P 600 Small-Cap US Stocks – The Standard & Poor’s 600 is an unmanaged index tracking a representative sample of stocks of 600 small-size US companies.  Historical:  S&P 600 Stock Index 1991-2022 Total Returns, Russell 2000 1979-1990. Ibbotson & Assoc. 1975-1978.

6   NASDAQ® Technology Stocks  – The NASDAQ Composite measures the performance of common stocks and other securities listed on the NASDAQ Stock Market.  The index is a market capitalization-weighted index that is composed mainly of information technology companies. 

7   MSCI EAFE® Foreign Equities (USD) – The Morgan Stanley Capital International Europe, Australasia, and Far East Index is a widely recognized benchmark of non-US stock markets.  It is an unmanaged market capitalization-weighted index composed of an aggregate of 21 individual country indexes that collectively represent over 1,600 equity securities in European and Pacific Basin countries.

8   Aggregate Bond Index – The Bloomberg Barclays US Aggregate Bond Index is composed of a variety of taxable bonds and is used as a measure of the US bond market. Historical:  Barclay's Aggregate Bond Index 1976 – 2022, Lehman Brothers Intermediate Govt. Bond Index 1975.  

9    The Consumer Price Index for All Urban Consumers (CPI-U) – represents changes in prices of all goods and services purchased for consumption by urban households.  Provided by the U.S. Department of Labor Bureau of Labor Statistics and is used to measure inflation.


KEY INTEREST RATE INDICATORS – Page 3, Mortgage Rates Info

C   Each week, since April 1971, Freddie Mac surveys lenders on the rates and points for their most popular 30-year fixed-rate, 15-year fixed-rate and 5/1 hybrid amortizing adjustable-rate mortgage products. The survey is based on first-lien prime conventional conforming home purchase mortgages with a loan-to-value of 80 percent. In addition, the adjustable-rate mortgage (ARM) products are indexed to U.S. Treasury yields and lenders are asked for both the initial coupon rate and points as well as the margin on the ARM products.  Lenders surveyed each week are a mix of lender types – credit unions, commercial banks and mortgage lending companies – which are roughly proportional to the level of mortgage business that each type commands nationwide.  As of November 17, 2022, the process for gathering the data was updated. Instead of surveying lenders, the Primary Mortgage Market Survey® results are now based on actual applications from lenders across the country that are submitted to Freddie Mac when a borrower applies for a mortgage. Additionally, they will no longer publish fees/points or adjustable rates.


All information for an index prior to its launch date is back-tested, based on the methodology that was in effect on the launch date.  Back-tested performance, which is hypothetical and not actual performance, is subject to inherent limitations because it reflects application of an index methodology and selection of index constituents in hindsight.  No theoretical approach can take into account all of the factors in the markets in general and the impact of decisions that might have been made during the operation of an index.  Actual returns may differ from, and be lower than, back-tested returns.

Asset Allocation Portfolios are for illustrative purposes only, not indicative of any specific investment.  This should not be construed as specific investment advice.  Periodic investment plans do not assure a profit or protect against a loss in declining markets.  Such plans involve continuous investment in securities regardless of fluctuating price levels.  No investment strategy, such as asset allocation, can guarantee a profit or protect against loss in periods of declining values.  Rebalancing investments may cause investors to incur transaction costs.  Rebalancing in a non-retirement account will create taxable events that may increase your tax liability.  All investments involve risk, including the potential loss of principal.  Mutual Funds, Exchange-Traded Funds and different asset classes have different investment objectives, risks factors, fees, and charges which may have an adverse impact upon the overall performance of the account.  Strategies such as asset allocation and/or diversification cannot assure a profit or guarantee against loss. Investors should understand market fluctuations may affect some or all of the underlying securities within the portfolio.  The composites presented are not registered under the Investment Company Act of 1940 (the Act) and are not subject to the provisions of the Act. While some of the underlying investments used to manage the composites such as mutual funds and ETFs are registered, the composites themselves are unregistered. Unregistered offerings are not held to the same level of regulatory oversight as investment companies that must register under the Act.  In general, frequent trading and rebalancing may cause a taxable event for investors where the investment is not held as part of a qualified plan.  An ongoing management fee is charged to investors who choose to invest in these portfolios.  Shares of ETFs are bought & sold at market price not NAV & are not individually redeemed from the Fund.

Money Market Funds are neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although money market funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in such a fund.

International Emerging Market Funds: Funds that invest in international securities involves special risks that are not present with US investments due to factors such as increased volatility, currency fluctuation, and differences in auditing and other financial standards. These risks can be higher in emerging markets securities.

Small/Mid Cap Equities: Investments in stocks of small and mid-size companies involve additional risks. Smaller companies typically have a higher risk of failure and are not as well established as larger blue-chip companies. Historically, smaller company stocks have experienced greater market volatility than the overall market average.

Bonds: In general, the bond market is volatile.  Bond prices rise when interest rates fall and vice versa. This effect is usually pronounced for longer-term securities. Any fixed income security sold or redeemed prior to maturity may be subject to a substantial gain or loss. Vehicles that invest in lower-rated debt securities (commonly referred to as junk bonds) involve additional risks because of the lower credit quality of the securities in the portfolio. There is a possible higher level of volatility, and increased risk of default.

Certificates of Deposit (CDs):  Sales of CDs prior to maturity may result in loss of principal invested. FDIC generally covers deposits of up to $250,000 in the aggregate for each depositor in each bank, thrift, or credit union.  Purchasing any insured CD will not exceed the aggregate deposit over $250,000 FDIC insurance limit. There is no FDIC insurance coverage for any principal losses that may be incurred.

Investors should carefully consider the investment objectives, risks, charges and expenses of mutual funds and ETFs.  This and other important information are contained in the prospectuses, which investors should read carefully before investing.