Market Commentary
For the week of February 16, 2009

The Market

With corporate earnings reports winding down, Wall Street will look to Washington this week for a series
of developments and reports. Following the Presidents’ Day holiday on Monday, on Tuesday President
Obama will sign the new $787 billion economic stimulus bill. On Wednesday, Federal Reserve Chairman
Ben Bernanke will give a speech about the central bank’s lending programs and its balance sheet. The
Commerce Department is scheduled to release its January report on housing starts on Wednesday, and
the Fed will issue its industrial production report for January the same day. On Thursday, the Labor
Department will issue weekly jobless claims figures. For the week, the Dow fell 5.09 percent to close at
7,850.41. The S&P lost 4.73 percent to finish the week at 826.84, and the NASDAQ dropped 3.6
percent to end the week at 1,534.36.

Source: * Past performance is no guarantee of future results. Indexes are unmanaged and
cannot be invested into directly. Three and five-year returns are annualized. The S&P, excluding “1 Week”
returns, is a reflection of return to an investor, by reinvesting dividends after the deduction of withholding tax.

Forever Rising The price of a 1-ounce, first-class postage stamp will increase from 42 cents to 44
cents on May 11, along with other mailing rates and services. Forever stamps purchased before the
increase can still be used without adding postage. The U.S. Postal services has said mail prices will be
adjusted each May. Shipping services like Express Mail and Priority Mail were increased in January and
will not rise again in May.

Stocks And Bonds In the past 25 years (i.e., 1984-2008), the S&P 500 stock index has produced a
total return of at least 20 percent in nine different years, most recently in 2003 (a gain of 28.7 percent that
year). Over the same period of time, long-term U.S. treasuries have produced a total return of at least 20
percent in five different years, most recently in 2008. The Lehman Brothers long-term Treasury index,
calculated using U.S. Treasury publicly issued obligations with maturities of 10 years or greater, was
used as the bond measurement (Source: BTN Research, Lehman Brothers).  

College Costs The parents of nearly two out of every three college students (62 percent) anticipate the
need to rely upon loans to pay for their child’s college education (Source: Fidelity, USA Today, BTN

Healthy Annual health care expenditures of every American citizen ($7,026) are more than twice the
level of the average British citizen ($3,361). One dollar out of every $6 of the U.S. economy is spent on
health care (Source: Time, BTN Research).   

WEEKLY FOCUS – Lay Offs Prompt 401(k) Decisions

Mass workforce reductions have become more frequent
during the current economic downturn. If you, a family
member or a friend become one of the thousands of
Americans laid off, you will face the important decision of
what to do with your
401k account.

Some employers require that employees who leave the
company move the money in their 401k account out of
the corporate plan. Others allow employees to leave the
money in the plan, where it can continue to grow, but no
new contributions can be made. In a lay-off situation,
however, you may be uncomfortable leaving your savings
with that company.

In this economy, taking a
lump-sum cash distribution may be tempting. Keep in mind, however, that you
will pay ordinary income tax on the proceeds plus a 10 percent penalty for early withdrawal if you are
under age 59½. In addition, you will make a dent in your retirement savings that you may never replace,
and you will lose the benefit of those assets compounding over the years.

Rolling the distribution directly into an
Individual Retirement Account (IRA) lets you avoid paying taxes or
penalties and keeps your savings available for your future retirement. Should you have a critical need for
the money, you can take an early distribution and pay the penalty, or you may qualify for an exception to
the penalty. According to Internal Revenue Service Publication 590, exceptions can include
unreimbursed medical expenses, medical insurance premiums and higher education expenses. Each of
the exceptions has specific requirements, and you should consult a tax advisor before taking a

In the event of a lay off, we can help you, your friends or your family members understand the options for
your 401(k) account and the benefits of keeping that money earmarked for retirement. Call us for a
review of your 401(k) situation. We are happy to include your tax advisor in our meetings with you.

* The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of
the stock market in general. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-
chip stocks. NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common
stocks traded on the National Association of Securities Dealers Automated Quotation System. The Morgan
Stanley Capital International Europe, Australia and Far East Index (MSCI EAFE Index) is a widely recognized
benchmark of non-U.S. stock markets. It is an unmanaged index composed of a sample of companies
representative of the market structure of 20 European and Pacific Basin countries and includes reinvestment of all
dividends. Written by Securities America. SAI# 294160
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Returns through 2/13/09
1 Week  
Dow Jones Industrials  
NASDAQ Composite
S&P 500