CCA e-Newsletter
3rd Quarter, 2009

Well, summer is upon us and it’s a great time to sit back, relax and reflect on the good things in your life!

The equity markets had some of their best returns in more than a decade during the quarter ended June 30, 2009. The Dow rose 11.01%, the S&P 500 advanced 15.22%, and the NASDAQ posted a whopping 20.05% gain. For this year, though the picture is not as rosy with the Dow still down 3.75%, S&P 500 up just 1.78%, but the NASDAQ is recording a 16.36% gain as technology stocks are hitting their stride.

As we head into the doldrums of summer, many traders and economists are wondering where do we go from here. Unless there is some dramatic improvement in the economy and more signs of “green shoots” it is unlikely that we see much of change from where we are. Although this is better than where we came from when you consider that since our lows in March the Dow, S&P, and NASDAQ are 30%, 37%, and 45% better respectively.

The articles in this quarters e-newsletter include ideas for making your money last for life. We are also including an article that notes the difference between annuities and bank CD’s. During difficult markets we tend to see annuities being pushed onto the nervous investor. Finally, we're passing along a helpful article that provides couples some helpful hints as retirement approaches.

Have a great 3rd quarter!

Keith & Debbie
Carpenter Claydon Advisors, Inc.

Latest News

How CD annuities differ from bank CDs

They’re called “CD annuities” because they have terms, much like bank CDs, but often, with higher yields.

The most popular terms for CD-style fixed annuities are 3, 5 or 10 years, and you can find them with yields from 3% to just under 5%. By contrast, don’t expect to earn more than a 3% annual percentage yield with a bank CD these days. It should come as no surprise that with those yields, CD annuities are selling like wildfire. Nevertheless, they can prove riskier than the bank CDs with which you may be more familiar.

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Make your money last for life

If you take care of your health, it's quite possible that you might live to 90, 95 or even 100. So if you retire in your 60s or 70s, you might be retired for 20 or 30 years -- maybe longer. That should be a good thing -- except if you run out of money in your 70s.

Unless you have significant benefits from a traditional pension plan, which provides a lifetime monthly income, you should be obsessed with managing your retirement savings so you don't outlive them. Most Americans approaching retirement need this obsession, given the decline of traditional pension plans. Your goal: to spend your last dollar as you gasp your last breath. Of course, that's much easier said than done.

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Steps Couples Should Take As They Approach Retirement

Define your lifestyle. More than two in five (42%) couples surveyed don’t agree on lifestyle expectations in retirement. Determine what you both want from retirement. Will you continue to work, and live your current lifestyle? Do you dream of traveling? Where will you live? Choose your target date. Three out of five (60%) couples surveyed differ on their expected retirement ages. Discuss with one another what age you would like to retire. Are you working toward an early retirement? Decide if you will work in retirement. More than two in five couples (44 %) surveyed don’t agree whether they’ll work in retirement. Before you can put a realistic retirement plan in place, it is important to understand if you will need to supplement retirement income with part-time work, or if you would like to work in retirement by choice.

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Did You Know…

The first credit card was issued in 1951

Credit was first used in Assyria, Babylon and Egypt 3000 years ago. The bill of exchange - the forerunner of banknotes - was established in the 14th century. Debts were settled by one-third cash and two-thirds bill of exchange. Paper money followed only in the 17th century.

The first advertisement for credit was placed in 1730 by Christopher Thornton, who offered furniture that could be paid off weekly.

From the 18th century until the early part of the 20th, tallymen sold clothes in return for small weekly payments. They were called "tallymen" because they kept a record or tally of what people had bought on a wooden stick. One side of the stick was marked with notches to represent the amount of debt and the other side was a record of payments. In the 1920s, a shopper's plate - a "buy now, pay later" system - was introduced in the USA. It could only be used in the shops that issued it.

In 1950, Diners Club and American Express launched their charge cards in the USA, the first "plastic money". In 1951, Diners Club issued the first credit card to 200 customers who could use it at 27 restaurants in New York. But it was only until the establishment of standards for the magnetic strip in 1970 that the credit card became part of the information age.

The first use of magnetic stripes on cards was in the early 1960's, when the London Transit Authority installed a magnetic stripe system. San Francisco Bay Area Rapid Transit installed a paper-based ticket the same size as the credit cards in the late 1960's.

The word credit comes from Latin, meaning "trust". Ironically. Almost half of all credit card disputes are about Internet transactions.

Cheques (checks) came into use in 1875.

Wine of the Month

Rosé wines are perhaps the most versatile, food-friendly wines around – and especially perfect for summertime sipping! They have had an image problem to overcome, thanks in part to the run of "White Zin," as many consumers mistake Rosé wines to be overly sweet and in the category of "starter wine." However, Rosé wine sales are on the rise as savvy Wine Lovers have discovered that many of these pink wines fall into the definitively "dry" category, not sugary sweet, and the vast majority of Rosé wines offer a very good wine value for the money. Rosé wine hues come from the short contact time that the grape juice has with the grape skin. Make sure to serve them chilled.

This quarter we’re spotlighting:

Banfi Rosa Regale Brachetto 2007 (Italy)

This particular bright pink wine from Italy's well-loved Piedmont region has a devoted following. It is a red sparkling wine that is sweet and subtle with the lush flavors of ripe raspberry and juicy strawberry. Consider giving this wine a run with chocolate-based desserts, fresh fruit and pecan pie.