2013 was a great year!

The stock market exceeded our expectations and logged its best year since 1995. We hope that you are as happy with your returns for 2013 as we are. Looking forward to 2014, the market will be hard pressed to repeat last year’s performance. We feel that the market is fairly priced as a group, but we continue to search for good value plays as the wealth effect of higher stocks and home prices may act to extend gains. Interest rates are still below long term averages. As the Federal Reserve begins to slow down it’s Quantitative Easing program, interest rates should continue to rise which will put further downward pressure on bonds. Therefore, we will be continuing to use our covered call strategy. It gives us downside protection and the ability to participate in a rising stock market, while also generating extra income.

The new year can be a good time for reflection and goal setting. Now is a good time to review your personal and financial goals to determine if you are on the right track. If you are retired, how do your expenses compare to your income? If you are looking forward to retirement, are you saving enough to reach your retirement goal? If you have any questions for us, please give us a call. Some questions can be answered over the phone. If we haven’t seen you in a while, now is a great time to set up an appointment for us to get together. It is always easier to improve your financial health while time is on our side. When it gets to the 11th hour, it becomes more and more difficult.

In the last quarter, we reviewed all accounts and took capital gains or losses as appropriate for each particular tax situation. It is always our goal to keep you as tax neutral as possible. If you ever have a special tax situation, please let us know prior to year end. We would also like to remind all tax clients that Mr. Rick Carlson will once again be preparing returns for you. We will assist Rick and review the completed calculations but he will sign them. If you are a tax client, it’s time to start accumulating your documents for submission in February.

Very Truly Yours,

Michael F. Cantlon

Thomas E. Guyett

Robert T. Gephart