CCA e-Newsletter
2nd Quarter, 2009

Hold the Date Please reserve the date and plan to join us for lunch and the opportunity to learn more about Social Security. We will be hosting the lunch at 12 p.m. on Thursday, May 14, 2009, at The Country Club of Orlando. For more information or to RSVP, please contact Linda at (407) 843-0316 or at linda@ccawealth.com. We hope you can join us!

Happy Spring!

Well, the good news is that the 1st quarter of 2009 ended on a bright note – the market was up over 8% for the month of March! The potential bad news is that earnings reports will be coming out soon and the news is expected to be bleak.

We continue to look for answers regarding the markets and expected returns going forward and so far our consensus is that nobody knows. There are some very bright people across the industry that say this is a tremendous buying opportunity so “back up the truck” (see: Jeremy Grantham), and then there are others who say there's more downside to come.

We suggest reading John Hussman's commentary on his website at www.hussmanfunds.com. On a weekly basis he puts his thoughts on paper and we find them to be direct and poignant.

This quarters articles include a sobering update from social security about future CPI increases, the annual report from Fidelity about the cost of healthcare for retirees and 7 year asset class return assumptions from GMO (an institutional money manager who did a good job of predicting the last 10 year asset class returns).

We look forward to seeing most of you as we get ready for our first quarter reviews.

Have a great 2nd quarter!

Keith & Debbie
Carpenter Claydon Advisors, Inc.

Latest News

Recession Hits Social Security Increases

Budget experts predict no Social Security cost-of-living increases for 3 years

The recession is projected to wipe out annual cost-of-living increases for 50 million Social Security beneficiaries for the next three years, something that hasn't happened since automatic adjustments were adopted in 1975.

The Congressional Budget Office says in its latest budget estimates that inflation will dip so low that Social Security recipients will not qualify for annual increases in 2010, or for two years after that. In 2013 through 2019 -- when projections are less reliable -- CBO estimates annual increases of 2 percent each year, which would be among the lowest.
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Retiree Health Care Estimate Jumps 6.7%

The latest Fidelity Investments retiree medical expense estimate is that a 65-year-old couple retiring in 2009 will need approximately $240,000 to cover the cost of medical care – a 6.7% hike over the comparable 2008 figure.

A Fidelity news release said the figure has skyrocketed by 50% since the $160,000 estimate issued in 2002.

Fidelity said the jump in the retiree health care cost estimate from 2008 to 2009 can be attributed to a number of factors including higher costs (e.g. for doctor's visits, diagnostic tests); increased expenses associated with new technology; and general price inflation (see "Retiree Health-Care Costs $225,000").
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Did You Know…

The Original Dow 30 Components

The following companies are the original members
of the Dow 30 on October 1, 1928:

Wine of the Month

Lemelson Vineyards
2006 Anderson Vineyard Pinot Noir
Willamette Valley

Cliff Anderson is one of the most interesting personalities in the Willamette Valley. His love of growing grapes is as evident as is his passion for talking politics. He insists that soils predominate over a wine's character and that the wines from his fruit reflect a little of his ideology as a grower.

He must have some very unique soil because wines from his vineyard are always quite different from our other pinots. The perfumed 2006 Anderson Vineyard Pinot noir is floral and earthy with tarragon, roasted plum and black pepper. The palate shows broad, even tannins with a character that is both weightless and smooth, with a pronounced sweetness that persists through to the long, penetrating finish.