Summer 2010 Quarterly Newsletter

THE MARKETS … A LOOK BACK

Our current sunny skies certainly have not matched the market performance this quarter!

Investors’ concerns about European debt issues were dampened slightly, and the focus turned to the overall pace of economic recovery, which you can see was disappointing from the graph below.

The fixed income markets had an interesting quarter with a controlled flight to quality.
High yield bonds showed surprising resiliency during a period where the equity markets got trounced.

Long-term rates declined even further, making us feel a bit “Chicken Little”-ish about our concern on long-term bonds.
However, we continue to keep our fixed income maturities shorter. Readers will recall that we increased our fixed income/cash
holdings in May, and we are currently looking for market re-entry now that prices have decreased some.

INDEPENDENCE

Fourth of July; the hoopla of fireworks and barbeques. Besides the fun, Independence Day is a celebration of the Declaration of Independence, where our forefathers announced our independence from Great Britain.

Independent: def: Free from the influence, guidance, or control of others; self-reliant*

While this means something different to each of us with our political, religious, and professional views Clint and I take our professional independence very seriously. Our industry is rife with conflicts that can undermine professionals’ independence, objectivity and client well-being. We are thankful to our clients for appreciating that independence.

*American Heritage® Dictionary of the English Language

CORPORATE RETIREMENT PLANS

Change is in the air again for corporate retirement plans. The “American Jobs and Closing Tax Loopholes Act of 2010” had called for, amongst other things, service providers fully disclosing their fees to the employer, and for the employer to fully disclose fees that are being charged to participants.

Current Status
The House approved the legislation, however, the Senate stripped it out. While it doesn’t appear that fee disclosure will occur due to this bill, it’s worthwhile for us to review it as fee disclosure is picking up steam and they are likely deferring to the Department of Labor’s expected regulations that are coming soon (within a month or two).

Takeaway
Sponsors need to prepare for full fee disclosure to participants; the Department of Labor and Congress have been moving that way for some time.

Very few small business owners understand the full array of non-disclosed fees being charged from the plan assets and will become vulnerable to the increased litigation. Since they are personally liable, this becomes even more important.

SEEN IN THE PRESS

“What Investment Trends are making an impact in 2010” by Mark Fissel, RFC,
Columbus Business First – 6/25/10

“Shaky Stock Market puts Low Risk Corporate Bonds in Play for Investors ” by Robert Celaschi,
Columbus Business First – 6/25/2010 (Clint Edgington, CFA)

TOP 3 MONEY MOVES THE WEALTHY ARE MAKING IN 2010

Click Here to learn more.

THE BUSINESS WEALTH MANAGEMENT PROCESS

This quarter’s activity: Estate and Legacy varies widely depending on the client’s wishes and life stage. For some clients, it’s simply reviewing their beneficiary designations, which are extremely important and sometimes neglected. For others, we may be helping them implement family meetings to discuss how they want to pass assets and values to future generations.

Next Quarter: Insurance and Protection (We do not sell insurance)

DID YOU KNOW?

Both John Adams and Thomas Jefferson died on July 4, 1826, our country’s 50th anniversary! Both were founding fathers and the only 2 presidents to sign the Declaration of Independence!

Clint Edgington, CFA Partner Beacon Hill Investment Adivsory	Mark Fissel, RFC Partner Beacon Hill Investment Adivsory