# INVESTMENT PLANNERS, INC. X-17A-5 (2023-03-02) — Broker-dealer annual report - Company: INVESTMENT PLANNERS, INC. - Form: X-17A-5 - Filed: 2023-03-02 - Period: 2022-12-31 - Accession: 0000789995-23-000001 - CIK: 789995 - File #: 8-35642 - Type: Broker-dealer - Material weakness: No - Auditor: Ryan & Juraska LLP - Auditor location: Chicago, IL - Contact: Ian M. Rhode - Phone: 217-542-1216 - Email: ianr@investment-planners.com - Website: investment-planners.com - Signed by: Bayard Closser (President) Original filing: https://www.sec.gov/Archives/edgar/data/789995/000078999523000001/ipipubed.pdf --- {0}------------------------------------------------ ![](_page_0_Picture_0.jpeg) # **Annual Financial Report** *December 31, 2022* **PUBLIC** {1}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ANNUAL REPORTS FORM X-17A-5 PART Ill FACING PAGE** 0MB APPROVAL 0MB Number: 3235-0123 Expires: Oct. 31, 2023 Estimated average burden hours per response: 12 SEC FILE NUMBER 8-35642 **Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934** FILING FOR THE PERIOD BEGINNING **1/1/2022** MM/DD/YY AND ENDING **12/31/2022 A. REGISTRANT IDENTIFICATION** NAME oF FIRM: Investment Planners, Inc. TYPE OF REGISTRANT (check all applicable boxes): MM/DD/YY C!l Broker-dealer □ Security-based swap dealer 0 Check here if respondent is also an OTC derivatives dealer **D** Major security-based swap participant ADDRESS OF PRINCIPAL PLACE OF BUSINESS: {Do not use a P.O. box no.) 226 W Eldorado St (No. and Street) Decatur IL 62522 (City) (State) (Zip Code) PERSON TO CONTACT WITH REGARD TO THIS FILING Ian M. Rhode 217-542-1216 ianr@investment-planners.com (Name) (Area Code -Telephone Number) (Email Address) **B. ACCOUNTANT IDENTIFICATION** INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing\* Ryan & J uraska LLP (Name - if individual, state last, first, and middle name) 141 West Jackson Boulevard Chicago (Address) (City) 3/24/2009 IL (State) 3407 60604 (Zip Code) (Date of Registration with PCA0B)(if applicable) (PCA0B Registration Number, if applicable) **FOR OFFICIAL USE ONLY** • Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.l ?a-S(e)(l)(ii), if applicable. **Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid 0MB control number.** {2}------------------------------------------------ #### **OATH OR AFFIRMATION** | I | , Bayard Closser | | | | swear (or affirm) that, to the best of my knowledge and belief, the | |---|------------------|--|--|----------------------------------------------------------------------|---------------------------------------------------------------------| | | | | | financial report pertaining to the firm of Investment Planners, Inc. | as of | 12/31 2� is true and correct. I further swear ( or affirm) that neither the company nor any partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely President ![](_page_2_Picture_3.jpeg) | Title: | | |--------|--| | Notary Public | | | |---------------|--|--| #### **This filing\*\* contains (check all applicable boxes):** - � {a) Statement of financial condition. - � {b) Notes to consolidated statement of financial condition. - D {c) Statement of income {loss) or, if there is other comprehensive income in the period{s) presented, a statement of comprehensive income {as defined in§ 210.1-02 of Regulation S-X). - D {d) Statement of cash flows. - D {e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - D {f) Statement of changes in liabilities subordinated to claims of creditors. - D (g) Notes to consolidated financial statements. - D {h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - D {i) Computation of tangible net worth under 17 CFR 240.18a-2. - D {j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - D {k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable. - D {I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3. - □ {m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - □ {n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3{p){2) or 17 CFR 240.18a-4, as applicable. - D {o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist. - D {p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - � {q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. - D {r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - 0 (s) Exemption report in accordance with 17 CFR 240.l 7a-5 or 17 CFR 240.18a-7, as applicable. - � {t) Independent public accountant's report based on an examination of the statement of financial condition. - D {u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - D (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - 0 {w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - D {x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-le or 17 CFR 240.17a-12, as applicable. - D {y) Report describing any material inadequacies found to exist or found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12{k). - D {z) Other:-------------------------------------- - *\*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-S(e){3} or 17 CFR 240.18a-7(d)(2), as applicable.* {3}------------------------------------------------ ![](_page_3_Picture_0.jpeg) # **Table of Contents December 31, 2022** | Report of Independent Registered Public Accounting Firm | | |---------------------------------------------------------|-----------| | Financial Statement | | | Statement of Financial Condition | 2-3 | | Notes to Financial Statement | 4 -
10 | {4}------------------------------------------------ **RYAN &JURASKA LLP** Certified Public Accountants 141 West Jackson Boulevard Chicago, Illinois 60604 Tel: 312. 922.0062 Fax: 3 I 2.922.0672 #### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Board of Directors and Stockholders of Investment Planners, Inc. #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Investment Planners, Inc. (the Company) as of December 31, 2022, and the related notes (collectively referred to as the financial statement). In our opinion, the financial statement presents fairly, in all material respects, the financial position of Investment Planners, Inc. as of December 31, 2022, in conformity with accounting principles generally accepted in the United States of America. #### **Basis for Opinion** This financial statement is the responsibility of Investment Planners, Inc. 's management. Our responsibility is to express an opinion on the Company's financial statement based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to Investment Planners, Inc. in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We have served as the Company's auditor since 2019. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statement, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statement. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statement. We believe that our audit provides a reasonable basis for our opinion. Chicago, Illinois March 1, 2023 {5}------------------------------------------------ ![](_page_5_Picture_0.jpeg) ### **INVESTMENT PLANNERS, INC.** # **Statement of Financial Condition December 31, 2022** #### **Assets** | Current Assets: | | |-----------------------------------------|-----------------| | Cash and cash equivalents | \$
127,497 | | Investments -
trading, at fair value | 207,643 | | Commissions and concessions receivable | 431,215 | | Deferred tax asset | 119,980 | | Miscellaneous receivable | 44,323 | | Prepaid expenses | 25,565 | | Total current assets | 956,223 | | Fixed Assets: | | | Leasehold improvements | 152,254 | | Office furniture and equipment | 245,764 | | Software | 45,273 | | | 443,291 | | Less accumulated depreciation | (324,449) | | Less accumulated amortization | (45,273) | | Net fixed assets | 73,569 | | Total Assets | \$
1,029,792 | The accompanying notes are an integral part of these financial statements. {6}------------------------------------------------ ![](_page_6_Picture_0.jpeg) ### **INVESTMENT PLANNERS, INC.** # **Statement of Financial Condition - Continued December 31, 2022** #### **Liabilities and Stockholders' Equity Current Liabilities: Accounts payable and accrued expenses Payable to affiliate Commissions payable Total current liabilities Long-term Liabilities: Legal settlement payable Total long-term liabilities Total Liabilities Stockholders' Equity: Common stock, no par value, 100,000 shares authorized, 12,375 shares issued and outstanding Paid in capital Retained earnings Total stockholders' equity Total Liabilities And Stockholders' Equity \$ 79,280 50,590 370,844 500,714 10,313 10,313 511,027 12,375 10,125 496,265 518,765 \$ 1,029,792** The accompanying notes are an integral part of these financial statements. {7}------------------------------------------------ ![](_page_7_Picture_0.jpeg) # **Notes to Financial Statement** *December 31, 2022* # *Note 1 - Significant Accounting Policies* *Nature of Operations:* **The Company operates as a broker and dealer of various types of investment vehicles throughout the United States. The administrative office is located in Decatur, Illinois. Operations in other states are conducted through commissioned representatives. Such commissioned representatives are responsible for their own offices.** *Basis of Accounting:* **The Company's financial statements are prepared using the accrual method.** *Use of Estimates:* **The preparation of financial statements in confom1ity with generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the repotted amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ f** r**om those estimates.** *Cash and Cash Equivalents:* **The Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents.** *Deposit with Clearing Broker:* **The Company is required to maintain a deposit of \$50,000 with the organization that clears its customers' transactions. The \$50,000 is included in cash and cash equivalents** *Commissions and Concessions Receivable:* **Commissions and concessions receivable are stated at the amount management expects to collect from balances outstanding at year-end. In the opinion of management at December 3 1, 2022, all commissions and concessions receivable were considered collectible and no allowance was necessary.** *Investments:* **The Company classifies its investments as trading. Securities classified as trading are carried in the financial statements at fair value. Realized and unrealized gains and losses are reported in operations.** *Miscellaneous Receivable:* **Miscellaneous receivables consist of amounts due from representatives and TPI Wealth Management, Inc., a related party through common ownership. Management assesses collectability of these receivables on an individual basis.** *Fixed Assets:* **Depreciation is provided on a straight-line basis using estimated useful lives of five to ten years. Leasehold improvements are amortized the lesser of the economic useful life of the improvement or 15 years. Software is amortized over three years.** *Commissions:* **Brokerage and direct commission income and related amounts due to representatives are recorded on a trade-date basis as transactions occur.** *Income Taxes:* **The Company accounts for income taxes under the asset and liability method, which requires the recognition of defer**r **ed tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, the Company determines deferred tax assets and liabilities based on the differences between the financial statement and tax bases of assets and 1 iabil ities. The amount of current and deferred taxes payable or refundable is recognized as of the date of the financial statements utilizing currently enacted tax laws and rates.** {8}------------------------------------------------ ![](_page_8_Picture_0.jpeg) *Deferred income taxes are recorded to reflect the future tax consequences of difference between the carrying value of assets and liabil ities for income tax and financial repo1ting purposes, and for the benefits of tax credit and loss carryforwards. The amounts of any future tax benefits are reduced by a valuation al lowance to the extent such benefits are not expected to be fully realized.* *The Company recognizes and measures its unrecognized tax benefits in accordance with Financial Accounting Standards Board Accounting Standards Codification (FASB ASC) 740, Income Taxes. Under that guidance the Company assesses the likelihood that tax positions will be sustained based upon examination of facts, circumstances and information available at the end of each period. The measurement of unrecognized tax benefits is adjusted when new information is available, or when an event occurs that requires a change.* *The Company continues to evaluate uncertain tax positions, if any, and income tax contingencies under F ASB ASC 450, Accounting for Contingencies. FASB ASC 450 requires the Company to accrue for losses it believes are probable and can be reasonably estimated. As of December 31, 2022, the Company had no uncertain tax positions, or interest and penalties, that qualify for either recognition or disclosure in the financial statement.* # **Note 2 - Cash and Cash Equivalents** *At December 31, 2022, cash and cash equivalents consisted of:* | Checking account | \$
55,194 | |------------------------------|----------------| | Money market funds | 22,303 | | Deposit with clearing broker | 50,000 | | | \$
1 27,497 | ### **Note 3 - Fair Value Measurements** *Fair value is defined as the price that the Company would receive to sell an asset or pay to transfer a liability in an orderly transaction between market patticipants at the measurement date. A three-tier hierarchy is used to classify fair value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in three broad levels as follows:* - *Level I - Unadjusted quoted prices in active markets that are accessible to the Company for identical assets or liabilities.* - *Level 2 - Inputs other than quoted prices included within Level I that are observable for the asset or liabil ity, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, quoted prices for similar instruments in active markets, interest rates, yield curves and credit spreads. For assets or liabilities with a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability.* - *Level 3 - Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available. These inputs, based on the best information available in the circumstances, would include reasonably available information about the assumptions that a market participant would use in valuing the asset or liability and might include the Company's own data.* {9}------------------------------------------------ ![](_page_9_Picture_0.jpeg) *To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The Company has no Level 2 or Level 3 investments or liabilities in 2022.* *The inputs used to measure the fair value of an asset or liability might be categorized within different levels of the fair value hierarchy. In those cases, the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.* *Assets measured at fair value on a recurring basis as of December 31, 2022 are as follows:* | | Fair Value Measurements at Repo1ting Date Using: | | | | | |--------------|--------------------------------------------------|------------------------------------------------------------|-----------|----------------------------------------|------------------------------------| | | Fair Value | Quoted Prices in
Active Markets for
Identical Assets | | Significant Other
Observable Inputs | Significant
Unobservable Inputs | | | | | (Level I) | (Level 2) | (Level 3) | | Mutual funds | \$
207 643 | | 207,643 | | | | Totals | \$
207,643 | \$ | 207,643 | | | *The Company recognizes transfers between levels at the end of the reporting period. There were no transfers between levels for 2022.* #### *Note 4 - Commissions and Concessions Receivable* *Commissions and concessions receivable are stated at the amount management expects to collect f* **r** *om balances outstanding at year-end. In the opinion of management, all receivables for commissions and concessions were considered collectible and no allowance was necessary. At December 31, 2022, amounts receivable consist of the following:* | Fees and commissions receivable | \$ | 3 1
6,969 | | |-------------------------------------|--------------|--------------|--| | rom clearing broker
Receivable f | 1 1
4,246 | | | | | \$ | 43
1 215 | | #### *Note 5 - Revenue from Contracts with Customers* *The Company recognizes revenue in accordance with F ASB ASC 606, Revenue from Contracts with Customers. That guidance requires public entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Revenue is recognized in the period fees are earned and securities transactions are recorded on the trade date basis.* {10}------------------------------------------------ ![](_page_10_Picture_0.jpeg) # *Note 9 - Contingent Liabilities* *In the normal course of business, the Company is involved, from time to time, in legal proceedings that are incidental to its operations. The Company accrues potential losses for these matters when it is both reasonably estimable and probable. Management is of the opinion that any claims, either individually or in the aggregate, to which the Company is a party, as of December 31, 2022, will not have a material adverse effect on the Company's financial position.* *There are currently two statements of claim filed with FrNRA against the Company for an unsubstantiated amount of damage. The claimants alleges that the Company and two of its registered representatives understated risks associated with securities that were sold to them. The maximum exposure for the Company is the retainer on the Company's insurance policy. The Company has not accrued any amount related to this claim as of December 31, 2022.* *In addition, there is a case in settlement negotiations against a shareowner arising out of his interest in the Company. There are no claims against the Company, however, the Company has agreed to indemnify a shareowner for the cost of legal defense. The parties are currently involved in written and oral discovery. The outcome of this case is unknown and no reasonable estimated range of loss can be determined. The Company has not accrued any amount related to this claim as of December 31, 2022.* # *Note 10 - Concentrations of Credit Risk Arising from Cash Deposits in Excess of lnsured Limits* *The Company's financial instruments that are exposed to concentrations of credit risk include cash. The Company maintains its checking account and a money market account in one financial institution located in Decatur, Illinois and two money market funds with other fund groups. The total cash balances of the Company are insured by the Federal Deposit Insurance Corporation (FDIC) up to \$250,000 per depositor, per bank. The Company does not have any cash balances that materially exceeded the balance insured by the FDIC as of December 3 1 , 2022. The Company monitors such credit risk and has not experienced any losses related to such risks.* ### *Note 11 - Indemnifications* *In the normal course of its business, the Company indemnifies certain service providers, such as clearing and custody agents, trustees and administrators, against specified potential losses in connection with their acting as an agent of, or providing services to, the Company. The Company also indemnifies some clients against potential losses incurred in the event specified third-party service providers improperly execute transactions. The maximum potential amount of future payments that the Company could be required to make under these indemnifications cannot be estimated. However, the Company bel ieves that it is unlikely it will have to make material payments under these agreements and has not recorded a contingent liability in the financial statements for these indemnifications.* {11}------------------------------------------------ ![](_page_11_Picture_0.jpeg) ### *Note 12 - Off-Balance Sheet Risk* *Since the Company does not clear its own securities and futures transactions, it has established accounts with clearing brokers for this purpose. This can and often does result in a concentration of credit risk with these firms. Such risk, however, is mitigated by each clearing broker's obl igation to comply with rules and regulations of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).* *The Company's customers' securities transactions are introduced on a fully disclosed basis with its clearing broker. The clearing brokers carry all the accounts of the customers of the Company and offer the following services: execution, collection and payment of funds and receipt and delivery of securities relative to customer transactions. Off-balance-sheet risk exists with respect to these transactions due to the possibility that customers may be unable to fulfill their contractual commitments wherein the clearing broker may charge any losses it incurs to the Company. The Company seeks to minimize this risk through procedures designed to monitor the creditworthiness of its customers and that customer transactions are executed properly by the clearing broker.* #### *Note 13 - Regulatory Net Capital Requirements* *The Company is subject to the SEC net capital requirements which require minimum net capital amounts be maintained. At December 3 1 , 2022, the Company's minimum net capital requirement was the greater of \$50,000 or 6-2/3% of aggregate indebtedness. At December 31, 2022, the Company had net capital of \$200,584 which was \$150,584 in excess of its required m inimum net capital. The ratio of aggregate indebtedness to net capital is 2.54 to 1 which is in excess of the minimum requirement.* #### *Note 14 - Financial Instruments - Credit Losses* *In June 20 1 6, the FASB issued ASU No. 20 1 6-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 20 I 6-1 3). The new guidance broadens the information that an entity must consider in developing its estimated credit losses expected to occur over the remaining life of assets measured either collectively or individually to include historical experience, current conditions and reasonable and supportable forecasts. ASU 20 1 6-13 replaces the existing incurred credit loss model with the cutTent expected credit losses model. The amendments were effective for fiscal years beginning after December 1 5, 20 1 9. The adoption of this standard on January 1, 2020 did not have a material impact on the Company's financial statement.* #### *Note 15 - Securities and Exchange Commission Rule 15c3-3* *The Company claims exemption f* **r***om Rule I 5c3-3 of the Securities Exchange Act of 1 934 as provided by paragraphs k(2)(i) and (k)(2)(ii). Accordingly, the Company is not required to submit a computation for the determination of reserve requirements or information relating to possession or control requirements.* #### *Note 16 - Subsequent Events* *Management has evaluated subsequent events for recognition or disclosure through March I, 2023, the date the financial statement was available for issuance, and determined there were no material subsequent events that required disclosure.* Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.