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Asset Allocation

August 17th, 2010
Asset allocation is a long-term strategy designed to help investors achieve their financial goals without assuming undue risk. It’s based on the premise that various types of investments have different characteristics that often prompt them to respond differently to economic and financial developments.
As we all know, in some years, bonds as a whole, perform better than stocks. Similarly, in some periods, stocks fare better than bonds. In still other
years, investors may do well to stay largely in cash – or in alternative investments or in real estate.

The difficulty, of course, is predicting how any particular asset class will perform in any given year.  For that reason, many investors – both institutional and individuals – place their funds in a number of different asset classes, in varying proportions.  By definition, then, asset allocation is unlikely to generate the greatest returns – since not all of the investment classes will do equally well.  By that same reasoning, however, an appropriately allocated investment portfolio should also protect investors against excessive exposure to poorly performing asset classes and limit volatility.

Defining Asset Allocation

Asset allocation generally refers to broad categories of securities deployed in different combinations and weights to construct the portfolio most appropriate to an investor’s needs and constraints. Commonly used asset classes include, but are not limited to:

| U.S. Equities
| Non-U.S. Equities
| Fixed Income
| Real Estate
| Alternative Investments
| Cash

Within each of these asset classes, diversification provides an additional strategy for controlling risk.  For example, rather than investing in one or two individual domestic stocks, the U.S. equity portion of your portfolio might consist of an array of equities.  These stocks would probably be diversified by characteristics such as sector, size, geographic location and the outlook for each underlying company.

Similarly, the fixed income portion of your portfolio might be diversified by selecting different types of bonds. Some options could include investment-grade corporate bonds with differing maturity dates or, if you’re willing to accept more risk in exchange for the opportunity to secure a  larger income stream, high-yield bonds. U.S. Treasuries provide yet another option. If you could use income that’s exempt from federal – and perhaps state and local taxes – you might want to diversify further into municipal bonds.

Allocating Your Assets

Your asset allocation should be based on your investment objectives and time horizon, as well as on your willingness – and ability – to assume risk.

Discussing your total financial picture – including securities in other accounts, real property, collectibles and other assets – with your financial advisor when developing or reassessing your investment strategy is essential. For example, in developing your portfolio, you may want to stay away from real estate invest- ment trusts (REITs) – no matter how well you think they will fare in the coming years – if you already own two homes and an apartment building. Instead, you may want to balance your real estate holdings with other types of investments – perhaps in assets that historically tended to maintain or increase their values when real estate prices decline. Should real estate prices soar, your existing properties will likely continue to appreciate, while other asset classes, emerging market stocks and U.S. corporate bonds, for example, may not fare as well. However, if real estate prices decline, the idea is that relative strength in these other asset classes should buffer your losses.

Similarly, if you are thinking about structuring an income-oriented portfolio, be sure to consider your other holdings. For example, if you have

$200,000 in bonds held in another account, you risk “overweighting” your total investable assets with fixed income if your new portfolio is heavily weighted in bonds. Depending on your circumstances and your needs, that emphasis on fixed income may be perfectly appropriate – or you may find that you need a greater focus on growth.

Once you and your financial advisor have developed and implemented your asset allocation, the task of managing your portfolio has only just begun. Regularly reviewing your holdings and rebalancing your portfolio to adjust for changes in the market environment or in the performance of your specific securities is essential to meeting your long-term goals.

Similarly, if you are considering a change in your longterm goals – or if they have already changed – make sure that you and your financial advisor restructure your investment portfolio as necessary and reassess your assets so they are aligned with your new objectives.

Assessing Your Portfolio’s True Composition

Understanding the various pieces that make up your portfolio is also key to an effective strategy. For example, you may think your portfolio is in good shape because it’s invested in a variety of mutual funds with differing objectives. Perhaps you own a mutual fund invested in growth stocks, plus a “balanced fund” (typically split between stocks and bonds), as well as some funds that are based on “value investing” and another focused on the technology sector.

To truly understand your portfolio, you and your financial advisor must know how each of those assets relate to and affect each other. Your advisor can help you look at those investments from the inside out – perhaps to discover that, based on your objectives, your portfolio is focused too heavily on growth when you consider not just the growth-oriented mutual funds, but the growth portion of your balanced fund, as well as some of the stocks held in your technology fund. In fact, you may find you own much more of a given type of investment – or even a specific stock – than would
be evident from a quick glance at your portfolio.

A Word on Risk

When it comes to the financial markets, risk has many dimensions. Some type of risk is inherent in virtually every investment decision – even if that
decision is to do nothing.

Thus, if you invest too heavily in traditionally conservative, less risky investments, you may be sacrificing the growth and/or the level of income you need to support the way you live your life. If you move to the opposite end of the spectrum and invest heavily in higher-yielding and, thus, possibly more speculative assets, you may face more risk than you can comfortably assume.

Similarly, if your portfolio is allocated relatively heavily to volatile investments, you’re likely to experience a broader range of price swings than had you invested primarily in more stable assets. Although those volatile investments may have more potential for appreciation over the long term, should you suddenly need to sell them, you may run a greater risk of loss.

However, the greatest risk you assume is the risk of not achieving your overall investment objectives – from buying a new home in two years to generating enough income for your retirement years; from ensuring adequate cash flow to meet your needs and obligations to financing a special needs trust for a family member who may require help down the road.

Thus, assessing your full financial situation, identifying reasonable risks, determining appropriate time frames and setting realistic goals are all essential to the success of your investment strategy.

Investors should carefully consider the investment objectives, risks, charges and expenses of mutual funds before investing. The prospectus contains this and other information about mutual funds. The prospectus is available from your financial advisor and should be read carefully before investing.

There is no assurance that any investment strategy will be successful. Investing involves risk and investors may incur a profit or a loss. Asset allocation and diversification do not ensure a profit or protect against a loss.
There is an inverse relationship between interest rate movements and fixed income prices. Generally, when interest rates rise, fixed income prices fall and when interest rates fall, fixed income prices rise. High-yield bonds are not suitable for all investors. The risk of default may increase due to changes in the issuer’s credit quality. Price changes may occur due to changes in interest
rates and the liquidity of the bond. When appropriate, these bonds should only comprise a modest portion of your portfolio. While interest on municipal bonds is generally exempt from federal income tax, it may be subject to the federal alternative minimum tax, or state or local taxes. In addition, certain municipal
bonds (such as Build America Bonds) are issued without a federal tax exemption, which subjects the related interest income to federal income tax.
U.S. Treasury bills are guaranteed by the U.S. government and, if held to maturity, offer a fixed rate of return and guaranteed principal value. Treasury bills are certificates reflecting short-term obligations of the U.S. government.
Alternative investments involve specific risks that may be greater than those associated with traditional investments and may be offered only to clients who meet specific suitability requirements, including minimum-net-worth tests.
Specific-sector investing, such as real estate, can be subject to different and greater risks than more diversified investments. Declines in the value of real estate, economic conditions, property taxes, tax laws and interest rates all present potential risks to real estate investments.
International investing involves special risks, including currency fluctuations, different financial accounting standards, and possible political and economic volatility. Investing in emerging markets can be riskier than investing in well-established foreign markets. Investing in growth stocks generally involves greater risks, and therefore, may not be appropriate for every investor.

Written by Raymond James Financial Services, Inc.

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Investment Lessons Emerge from Unsettled Global Marketplace

May 26th, 2010

Instant worldwide market reaction to the good or bad news of the day is typical of the current investment landscape, but there is much to be learned from the interconnectedness of global markets. It is no longer enough, for example, to think you have a diversified portfolio merely because you have exposure to both domestic and foreign stocks – they’re the same asset class and they act that way. The economic turmoil in Greece may seem to be regionally specific, but, from a stock perspective, what happens overseas can very easily affect markets everywhere.

To be truly diversified, the modern investor may want exposure to commodities, currencies, cash and interest rate markets. Investors can watch for market volatility by using the Volatility Index (VIX) as a guidepost. The index is a measurement of investor complacency and fear. When it starts low and moves up, it’s telling you that fear is increasing – and that investors and traders are likely to start selling stocks – says Raymond James’ Chief Market Technician Art Huprich in this edition of Professionally Speaking, hosted by Larry Pugliese.

You can access this audio presentation by visiting our website at http://www.raymondjames.com/experts/huprich.htm.  To listen, you may have to download and install QuickTime, Windows Media Player or Real Player. The software is free, and the download, available in the Professionally Speaking section of our website, should take only a few minutes.

If you would like to discuss the content of this edition of Professionally Speaking, or if you have questions about your portfolio or the markets, please feel free to contact us.

Commodities and currencies are generally considered speculative because of the significant potential for investment loss. They are volatile investments and should only form a small part of a diversified portfolio.
Diversification does not ensure a profit or protect against a loss. International investing also involves special risks, including currency fluctuations, different financial accounting standards, and possible political and economic volatility.
There is no assurance any investment strategy will be successful. Investing involves risk and investors may incur a profit or a loss. Investors cannot invest directly in an index.

Compliance approval M10-1498 until 12/31/10

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Health-Care Reform: Considerations for Seniors

May 2nd, 2010

The enactment of the new health-care reform legislation contains some provisions that directly affect our nation’s older population. If you’re a senior, you may be concerned about how these reforms may affect your access to health care and the benefits you are currently receiving.

Medicare spending cutsNot surprisingly, the concerns of retirees and seniors generally center on potential cuts in Medicare benefits. At the outset, the new legislation does not affect Medicare’s guaranteed benefits. However, a goal of the new health-care legislation is to slow the increasing cost of Medicare premiums paid by beneficiaries, and to ensure that Medicare will not run out of funds. To help achieve these goals, cuts in Medicare spending will occur over a ten-year period, beginning in 2011, particularly targeting Medicare Advantage programs––Medicare programs provided through private insurers but subsidized by the federal government. These cuts could reduce or eliminate some of the extra benefits Medicare Advantage plans may offer, such as dental or vision care, and some insurers may choose to increase premiums. But Medicare Advantage plans cannot reduce primary Medicare benefits, nor can they impose deductibles and co-payments that are greater than what is allowed under the traditional Medicare program for comparable benefits. And, some of the federal funds previously earmarked for Medicare will be reallocated to doctors and surgeons as an incentive to treat Medicare patients.

Medicare Part D drug program changesSome Medicare Part D beneficiaries are surprised to find that they have to pay for the entire cost of prescription drugs out-of-pocket after reaching a gap in their annual coverage, referred to as the “donut hole.” Currently, if you’re a Medicare Part D beneficiary, you may pay up to an additional $3,610, out-of-pocket, for medicines after reaching an initial threshold of $2,830 in total prescription drug costs (including Part D payments, beneficiary co-pays, and deductibles). But, beginning in 2010, beneficiaries who fall in the donut hole will receive a $250 rebate, and, in 2011, they will receive a 50% discount on brand-name drugs. By 2020, a combination of federal subsidies and a reduction in co-payments will completely eliminate the donut hole. However, individuals with annual incomes greater than $85,000, and couples with incomes exceeding $170,000, will see their Part D premiums increase as the federal subsidy offsetting some of the cost of Medicare Part D premiums is reduced.

Benefits added to MedicareThe leglislation also improves some traditional Medicare benefits. For example, Medicare beneficiaries will receive free wellness and preventive care beginning in 2011.

Increased access to home-based careOften, people with disabilities or illnesses would rather receive care at home instead of at a hospital or nursing home. The new health-care reform law provides for programs and incentives for greater access to in-home care. The Community Living Assistance Services and Support program (CLASS) will be established sometime after 2011 (depending on when final regulations are published) as a voluntary insurance program, financed through payroll deductions and available to all working adults who choose to participate. This national program allows participants with functional limitations to maintain their personal and financial independence and live in the community by providing a cash benefit of at least $50 per day (after a five-year vesting period) for nonmedical services, such as home-care services, family caregiver support, and adult day-care or residential-care services. In order to qualify, a participant must need help with at least two activities of daily living, such as eating, toileting, transferring, bathing, dressing, or continence.

Also in 2011, the Community First Choice Option will be available to states to add to their Medicaid programs. This option will provide benefits to Medicaid-eligible individuals for community-based care instead of placement in a nursing home. In addition, the State Balancing Incentive Program, to be established in 2011, will provide increased federal funds to qualifying states that offer Medicaid benefits to disabled individuals seeking long-term care services at home, or in the community, instead of in a nursing home. The Independence at Home demonstration program, available in 2012, will be a test program that provides Medicare beneficiaries with chronic conditions the opportunity to receive primary care services at home. That is intended to reduce costs associated with emergency room visits and hospital readmissions, and generally improve the efficiency of care.

Source: Forefield Inc.
© Copyright 2006 – 2010 Forefield Inc. All rights reserved.

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Health-Care Reform: How Does It Affect Businesses?

May 1st, 2010

In March of 2010, President Obama signed two pieces of legislation into law, implementing the most pervasive health-care reform since Medicare. Many of the reforms that relate to business and employers don’t take effect until 2014. Here are some of the important highlights of health-care reform from the perspective of employers and businesses.

Health insurance not required but encouragedContrary to popular belief, health-care reform does not actually require all employers to offer health insurance to their employees. Instead, the new reforms use financial penalties to encourage employers to offer affordable health insurance coverage. Specifically, beginning in 2014, employers who have at least 50 full-time employees, and do not offer health insurance, may be assessed a fee of $2,000 for each full-time employee (excluding the first 30 employees) if at least 1 employee is receiving a premium credit. (A premium credit can be used by eligible individuals and families who purchase health insurance through state-based exchanges to reduce the premium cost.)

Even employers who do offer coverage may face a fee if at least 1 full-time employee is receiving a premium credit. The fee is either $3,000 per employee receiving the credit or $2,000 for each full-time employee, whichever total is less. Employers with fewer than 50 full-time employees are exempt from these fees. But, employers with 200 or more employees must automatically enroll employees in health insurance plans offered by the employer. The employee may voluntarily opt out of the employer’s plan.

In addition, employers that offer employee health insurance must offer a free choice voucher to employees who elect to enroll in a state-based American Health Benefit Exchange plan. The value of the voucher is equal to the amount the employer would have paid to cover the employee under the employer’s plan. Employees may enroll in an Exchange plan if the employee’s income is less than 400% of the Federal Poverty Level (FPL) and the employee’s cost to participate in the employer’s plan is between 8% and 9.8% of the employee’s income. The voucher can be used to offset the employee’s cost to participate in the Exchange plan.

Employer incentivesAs an incentive for small businesses to offer employee health insurance, from 2010 to 2013, employers with 25 or fewer full-time employees with average annual wages less than $50,000 may be eligible for a tax credit of up to 35% of the employer’s total premium cost. Beginning in 2014, small businesses that buy insurance through state Exchanges for their employees may receive a credit of up to 50%. In either case, the credit decreases as the number of employees and average annual wage increases.

By 2014, in an effort to promote wellness and decrease health insurance costs, employers will be able to offer employees rewards, such as premium discounts and added benefits, for participating in wellness programs and meeting certain health-related standards. The value of the rewards can equal as much as 30% of the cost of coverage and may even reach 50% in some cases.

Employers who provide insurance for retired employees who are over age 55, but not yet eligible for Medicare, may receive reimbursement for 80% of retiree claims between $15,000 and $90,000. This temporary reinsurance program begins in 2010 and is available until 2014. On the other hand, employers who currently receive a tax deduction for Medicare Part D drug subsidy payments will see that deduction eliminated in 2013.

Small businesses with up to 100 employees may be able to purchase health insurance through state-based Small Business Health Options Program (SHOP) Exchanges by 2014. The Exchanges will offer at least four benefit categories of plans based on covering an increasing percentage of benefit costs.

Source: Forefield Inc.
© Copyright 2006 – 2010 Forefield Inc. All rights reserved.

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Health-Care Reform: How Does It Affect You?

April 30th, 2010

Now that comprehensive health-care reform has been signed into law, how will it affect you? While some portions of the law become effective in 2010, other provisions are phased in over time. Nevertheless, it is almost certain that at least some of these reforms will have an effect on you and your family.

If you already have health insuranceFirst, by 2014, most U.S. citizens and legal residents will be required to have qualifying health insurance or face a possible fine. But even if you already have insurance, some reform provisions may affect you. For instance, beginning this year, you generally can keep your adult child on your coverage up to age 26. And, your insurer will no longer be able to rescind your coverage if you get sick, impose lifetime coverage limits, rescind your coverage except for fraud, or impose coverage exclusions for your child due to pre-existing health conditions. In 2014, you can no longer be charged higher rates based on your health status or gender, and insurers cannot extend waiting periods beyond 90 days.

Starting next year, reimbursements from health flexible spending accounts (health FSAs) and health reimbursement accounts (HRAs) for over-the-counter drugs will be restricted, and tax-free reimbursements from health savings accounts (HSAs) and Archer MSAs for over-the-counter drugs will not be allowed, while the tax on HSAs and Archer MSAs increases for distributions not used for qualified medical expenses. In addition, beginning in 2013, contributions to health FSAs will be limited to $2,500 per year. Finally, the income threshold for itemizing medical expense deductions will increase from 7.5% to 10% in 2013.

If you have MedicareMedicare beneficiaries will also see some changes to their coverage. You’ll be covered for most preventive and wellness care expenses without co-payments beginning in 2011. Medicare Part D participants who find themselves paying all of the cost of their prescriptions after reaching a minimum threshold, a situation referred to as the “donut hole,” will gradually see their out-of-pocket expenses decrease, beginning in 2010 with the payment of a $250 rebate, until 2020, when the donut hole is completely filled. If you’re a Medicare Advantage beneficiary, however, beginning in 2011, you may see some of the extra benefits offered by these plans dropped as government payments to these plans are restructured and, in some cases, reduced. And, in 2013, if you’re an individual with annual earnings equal to or greater than $200,000, or a married couple with joint annual earnings of $250,000 or more, your Medicare payroll tax will increase by 0.9%, from 1.45% to 2.35%. Also, for high income taxpayers, a Medicare tax of 3.8% will be applied to some types of investment income, such as rent, capital gains, and annuity payments, but not distributions from qualified retirement plans, such as IRAs and 401(k) accounts.

If you don’t have insuranceIf you don’t have insurance, or if it’s too expensive, the new reforms may make it easier for you to get and keep health insurance. By 2014, insurers will have to accept you regardless of your health history, and premiums can only vary based on tobacco use and age. Prior to that time, if you haven’t been able to get insurance for at least six months due to a pre-existing condition, you will be able to purchase insurance through temporary high-risk pools.

In 2014, Medicaid availability is expanded to those under age 65 with incomes up to 133% of the Federal Poverty Level (FPL). You will also have state-based American Health Benefit Exchanges, available by 2014, through which you can buy health insurance from various plans. In addition, premium and cost-sharing subsidies will be available for individuals and families with incomes at or below 400% of the FPL, which can aid in reducing the cost of insurance purchased through exchanges.

Source: Forefield Inc.
© Copyright 2006 – 2010 Forefield Inc. All rights reserved.

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Two Cheers as Dow Edges Past the 11,000 Threshold

April 13th, 2010

For the first time since September 2008, the Dow Jones Industrial Average (an unmanaged index of 30 widely held stocks) closed above 11,000, a number that may offer more psychological comfort than solid evidence of underlying economic strength. Nevertheless, it’s not entirely insignificant. This is, after all, nearly 4,500 points above the 6,547 reached in March last year, an increase of 68.1% and testament to what investors believe is a recovering economy. However, the realization that we’re still more than 3,100 points below the high reached in October 2007 should keep the celebrations muted.

For the record, the Dow finished at 11,005.97. The NASDAQ Composite (an unmanaged index of common stocks listed on the NASDAQ National Stock Market) closed at 2,547.87 and the S&P 500 (an unmanaged index of 500 widely held stocks) stood at 1,196.48.

Behind the more or less steady rise of the market indices since early February – the Dow finished under 10,000 on February 8 – are upbeat signs that the economy is in a slow recovery. There are positive job growth indicators, though still below what is needed to reduce the 9.7% unemployment rate. Investor worries about Greece possibly defaulting on its national debt eased with the announcement that the other 16 countries that use the euro agreed to a $40.5 billion loan.

The uncertainty was even reflected among the members of the National Bureau of Economic Research, who declare recession beginnings and endings. The evidence, some of them said, is too difficult to detect. That is, the end of the recession begun in December 2007 hasn’t created the kind of easily detectable upward turn that has marked the end of previous recessions, therefore allowing the committee to declare them ended.

It’s fine that the markets are headed up instead of in the other direction, but it’s best to stick with fundamentals and your long-term assessment of the value of the holdings in your portfolio rather than get too entranced by the crossing of an arbitrary line.

If you’d like to discuss your portfolio, have a second opinion or explore new investment opportunities, please give us a call.

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Wanting too much–How to Avoid Investment Fraud

March 3rd, 2010

Part 1 of 2
By Sandy Hunter
Administrative/Marketing Assistant

As we have begun the uphill climb from the market slump it has created the perfect breeding ground for investment scammers to run rampant. With tensions high and people feeling desperate to make up their losses investors, if not educated and on the defense, are sitting ducks for con men on the hunt for easy prey. Following you will find information on how to protect yourself and your investments from would be thieves.

The Psychology of a Scam

“If it’s too good to be true, it probably is” – which is true but one of the struggles is knowing the difference between good and too good. In this economy it is even harder, which is exactly what investment fraudsters are counting on. Their smoke and mirrors can make any investment seem like a sure fire deal. Scammers look for your Achilles heel by asking seemingly harmless questions. They might ask about your family, health, hobbies, past employers, political views, anything that might seem like just small talk or basic information. They will use their new found personal information as ammunition against you through one of these popular persuasion tactics:

The “Phantom Riches” Tactic-dangling the promise of wealth. Enticing you with something you want but can’t have. “These gas wells are guaranteed to produce $6,800 a month in income.:

The “Source Credibility” Tactic-trying to build credibility by claiming to be with a reputable firm or to have a special credential or experience. “Believe me, as Vice President of XYZ firm, I would never sell an investment that doesn’t produce.”

The “Social Consensus” Tactic-leading you to believe that other savvy investor have already invested. “This is how ____ got his start.“

The “Reciprocity” Tactic- offering to do a small favor for you in return for a big favor. “I’ll give you a break on my commission if you buy now, half off!”

The “Scarcity” Tactic-creating a false sense of urgency by claiming limited supply. “There are only two units left, so I’d sign today if I were you.”

These are all tactics used by genuine companies, which makes it even harder to distinguish the difference. These tips can help you tell the difference.

1. End the conversation. It is not impolite of you to tell them “no thank you I am not interested” and then hang up. It is impolite of them to try to steal your money so you are under no obligation to listen to what they have to say! If you struggle with being direct, tell them you don’t make financial decisions without consulting your _______ first. Let your spouse, lawyers, accountant, financial advisor, whomever be your escape goat. 

2. Take control and ask the questions. One blanket red flag is if they are not licensed and registered. Ask if they and their firm is registered with FINRA? Securities and Exchange Commission? If so, which one(s)? Then do your homework and verify that they are by using: FINRA Broker Check or call 800-289-9999 for Brokers.  Use the SEC’s Investment Adviser Public Disclosure Website which is:   http://www.adviserinfo.sec.gov/IAPD/Content/IapdMain/iapd_SiteMap.aspx

3. Research an investment. Ask if it is registered with the SEC or with your states securities regulator/ Then use the SEC’s EDGAR database of company filings at to confirm it really is: http://www.sec.gov/edgar.shtml

4. Always get a second option. If they tell you to  not tell anyone else be extremely skeptical. Even if they are registered it is a good idea to talk to other people and see what they know before making a decision.

One way to help safeguard yourself is to reduce the amount of telemarketing as much as possible. One easy step is to take your number off telemarketing and junk mail lists.

Telemarketing calls-  www.donotcall.gov or call toll free (888)382-1222

Direct Mail and email offers-  www.dmachoice.com

Credit Card Offers- www.optoutprescreen.com

Online Cookie Collecting- http://www.networkadvertising.org/

Most legitimate firms will honor your request. So if you receive solicitation after taking these steps, be even more skeptical.

If you believe you have been scammed you can file complaint with FINRA at:

FINRA Complaints and Tips
9509 Key West Avenue
Rockville, MD 20850

I also found this great tool to help you decide if an investment is “too good!” Visit this website: http://apps.finra.org/meters/1/scammeter.aspx

Source AD#: C10-01881

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Politics and Taxes 2010 Workshop

February 26th, 2010
Politics and Taxes 2010 Workshop

We hope that all of you who attended our Market Outlook Seminar in January found the information helpful.
We enjoyed seeing many of you there and hope that you will be able to attend some of our upcoming events as well.

HOW WILL THIS EFFECT YOU?

Are you looking for some clarification?

Our next open seminar will be on Wednesday, March 10th 2010 and March 11th 2010. We will review information on
the tax changes including the changes in individual, corporation and estate taxes. We will also review the
change to who is eligible to convert their IRA’s into a Roth IRA and help you determine if it would be beneficial to you.

We have two presentation times.

Both presentations located at:
533 West 2600 South, Bountiful UT
Conference Room 24

Please RSVP for correct meal count to Sandy Hunter, 801-295-7373.

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Go Green–Receive Raymond James Statements and Prospectuses Electronically

February 25th, 2010

By Melissa Ellis
Investment Executive

If you currently have a login to Raymond James Investor access did you know that you can select to have you Raymond James statements and other information from Raymond James sent electronically? 

Please note that those who had selected to have their statements suppressed previously will need to reselect this option in the new Investor Access system.  Raymond James made a change to their Investor Access in October 2009 and this feature did NOT transfer over to the new system.  You will need reselect this service by following the instructions below. 

Login to Investor Access and go to the Account Services tab and select Statement and Trade Confirmation Delivery Options.  You then have the option to select to receive statements and trade confirmation online only, by mail, or online monthly and paper annually.  You can select different options for different accounts. 

If you currently don’t have access to view your account online visit our website at www.marvinellis.com and click on the Investor Access icon in the top right corner.  Then click on the link Enroll in Investor Access.  Please make sure that you have your Raymond James statement nearby as you will need to enter your account number along with your personal information in order to establish a login. 

In addition, it has just been announced that as of January 25, 2010 you can also elect to receive your prospectuses from Raymond James electronically.  This means the mail you receive from Raymond James can be reduced even more.  We are very excited about this new and hope your mailbox is too!

To sign up to receive your prospectuses electronically login to Investor Access and go to the Account Services tab and select Shareholder Communication Delivery Options.  Once electronic delivery is elected, you will receive an e-mail notification to confirm enrollment. A printed notification will also be mailed to the address of record to indicate the election of the electronic delivery of the prospectuses.

Please be assured that you can resume postal delivery of prospectuses at any time by changing your election in Investor Access. Any change of election, however, may not go into effect until the following business day.

Please note that we as your advisors are still required to send you a copy of these prospectuses as well.  We usually send them electronically in hopes to save a few trees.  However, if you don’t have an email address on file with us we send them in the mail.

Please also note that some materials may not be available in electronic format.  If the materials are not available in electronic format, clients will receive the materials by mail at their address of record. 

If you have any questions about these processes please feel free to call our office (801-295-7373) or our Investor Access line at 1-877-752-2237 and we would be glad to help as we feel these changes will be greatly beneficial to you!

Source AD#: C10-01881

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Why this is not a “Lost Decade”

February 23rd, 2010

We have lost track in the last year of the number of times we have heard commentators on TV, radio or in print make a statement that if you were in the S&P 500 you lost money in the last 10 years (-0.95%), hence a “lost decade”.  Though the statement is true that the S&P 500 lost money, the danger is to assume that you as the investor did the same, worse or that you will loose the same for the next decade.

The past decade has been one of the most challenging on record for investors.   We experienced two recessions, which hasn’t happened since the 1930s.  The real question is “During this volatile period, how have well run equity mutual fund managers done?”

The below chart illustrates how a balanced portfolio brought back a 59.9% cumulative return in 10 years compared to 9.1% for the S&P 500.  While past returns are not predictive of future results, they powerfully illustrate how “good money managers” and a well diversified portfolio help investors achieve their long-term goals.   We continue to belief the key elements to successful investing include:  1) Diversifying in the appropriate mix of stocks and bonds based upon your risk tolerance  2) Optimizing your portfolio with an appropriate mix of different asset classes.  3) Hiring quality managers that have consistently beat their benchmarks  4) Regularly monitoring and rebalancing your portfolio when appropriate.

Source:  Russell, MSCI Inc., Dow Jones, Standard and Poor’s Barclays Capital, NCREIF, J.P. Morgan Asset Management.  The “balanced” portfolio assumes the following weights: 25% in the S&P 500, 10% in the Russell 2000, 15% in the MSCI EAFE, 5% in the MSCI EMI, 30% in the Barclays Capital Aggregate, 5% in the CS/Tremont Equity Market Neutral Index, 5% in the DJ UBS Commodity Index, and 5% in the NAREIT Equity REIT Index.  Balanced portfolio assumes annual rebalancing.  All data except commodities represent total return for stated period.  Past performance is not indicative of future returns.  Data are as of 12/31/09, except for the CS/Tremont Equity Market Neutral Index, which reflects data through 11/30/09.  “10 Year” returns represent cumulative total return and are not annualized.  Index Definition: S&P500 (500 large-cap common stocks actively traded in the United States), Russell 2000 (small cap index), MSCI EAFE (Europe, Australia, Farr East index), Barclays Capital Aggregate (investment grade bonds index), CS/Tremont Equity Market Neutral (hedge fund index), DJ UBS Commodity Index (commodities index) , NAREIT Equity REIT Index (real estate investment trust index).  You cannot invest directly in any index.  Individual results will vary.

Source AD #C10-03249.  An excerpt from our 4th Quarter 2009 newsletter.  Written by Marvin T. Ellis, Jr, Financial Consultant.

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