Pensions and the Dodo Bird

If you have a pension or are in line to receive a pension, consider yourself fortunate. Pensions are going the way of the dodo bird. Companies are outsourcing them to insurance companies, converting them into 401k retirement plans or just plain getting rid of them. If you are still working towards retirement and do not expect a pension, realize that YOU are expected to put aside a portion of your earnings today in order to ensure a comfortable retirement. If we have not reviewed your retirement plans recently, NOW is a great time for us to get together to make sure that your plan is still valid.

On the economic front, the stock market continues to climb, marking new highs. The economy looks to be getting better; unemployment continues to decline, rail traffic and shipping traffic continue to increase. Maybe, just maybe, the economy is finally getting back on it’s feet.

We continue to lament the lack of return in fixed income. The market is penalizing all assets that are not invested or are sitting on the sidelines. We are looking for fixed income investments, but have yet to find anything suitable in that sector.

We are happy with our returns through mid-year. Due to changes in market volatility, we have shifted our covered call strategy to shorter term options. These shorter term options, combined with dividend paying stocks and our value investment strategy, allow us to continue to earn a fair rate of return.

We are pleased to inform you that Rob has recently been recognized as a Certified Financial Planner. Over the past 3 years, Rob has been taking classes and standardized tests in order to meet the stringent qualifications set forth by the Certified Financial Planner Board of Standards. His hard work has paid off. Congratulations, Rob!

Very Truly Yours,

Michael F. Cantlon

Thomas E. Guyett

Robert T. Gephart