CCA e-Newsletter
1st Quarter, 2010

Happy New Year!

Boy, what a year 2009 turned out to be! By March the market had fallen another 25% and we were all ready to run for the hills when the market decided to be volatile to the upside and soared to end the year up over 26%!

While we are happy that the markets were up in 2009 we do believe that the weight of the evidence makes a strong case for a tough road for the economy and the financial markets, despite the beginnings of an economic recovery -- which at this point have been mostly government supported. The first article for this quarter’s newsletter is by Littman Gregory (an experienced research company in which we outsource some research and data). We think they do a good job of highlighting the concerns we have going forward.

As you know Congress has attacked the credit card companies and have passed the Credit Card Act of 2009 to stop the abusive tactics of credit card companies. Before the restrictions take place credit card companies are hurriedly changing their agreements with cardholders. The second article explains what you should be aware of.

Questions always arise regarding working and collecting social security. To this end, the third article of our newsletter is entitled “How to Work and Collect Social Security in 2010”.

A lot of changes could happen in 2010 as the Bush administration Tax Relief Act is set to sunset this year. Undoubtedly it will be another interesting ride in 2010.

Keep February 18th open as we plan to host a lunch and learn about what the estate tax landscape may look like. We will also discuss ROTH conversion. Be on the lookout for the invite with the details.

We hope all of you have a peaceful, hopeful and healthy 2010!

Best Regards,

Keith & Debbie
Carpenter Claydon Advisors, Inc.

Latest News

Monthly Investment Commentary

When the dust settled on one of the most eventful and upended years in memory, investors had generous gains in stocks and certain segments of the bond market to salve the wounds of a disastrous 2008 and first quarter of 2009. Stocks finished the year strongly, continuing their powerful run that began in early March. Large-cap stocks, based on the Vanguard 500 Index Fund, gained about 6% in the final quarter, and finished 2009 with a 26.5% gain. In both the quarter and the full year, growth sharply outpaced value, but between larger-caps and smaller-caps, returns were pretty similar.

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How to work and collect Social Security in 2010

Planning to work while you collect Social Security benefits? If your earnings exceed a certain threshold, and you’re of a certain age, you’ll have to forfeit some of your benefits.

It’s the law. And for 2010, there’s a twist: That threshold will not increase. It’ll be the same as it was in 2009. As a result, some people will be even more careful about how much they earn. “It does make a difference” for certain beneficiaries, said Anthony Webb, associate director of research at Boston College’s Center for Retirement Research.

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Creative New Fees Escape CARD Act Rules, Surprise Consumers

While the Credit CARD Act of 2009 puts an end to abusive tactics card issuers have long used to boost their profits, consumers need only to look at their card statements to know there's no reason to celebrate.

In the past year, card issuers have rolled out or expanded their use of other ways to collect millions more in fees each year, many of which are hidden to consumers, according to the Durham, N.C.-based Center for Responsible Lending's Dec. 10 report, "Dodging Reform: As Some Credit Card Abuses Are Outlawed, New Ones Proliferate."

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Did You Know…

• Approximately 40% of the U.S. paper currency in circulation was counterfeit by the end of the Civil War
• No piece of paper can be folded in half more than 7 times
• More people are killed by donkeys annually than are killed in plane crashes
• Herbert Hoover, who was the 31st president of the United Stated, turned over all the Federal salary checks he received to charity during the 47 years he was in government
• The most dangerous job in the United States is that of a fisherman, followed by logging and then an airline pilot
• Walt Disney had originally suggested using the name Mortimer Mouse instead of Mickey Mouse
• The spray WD-40 got its name because there were forty attempts needed before the creation of the "water displacing" substance
• Detroit, Michigan has more registered bowlers than any other city in the USA

Wines of the Quarter

2006 Mount Eden Vineyards Estate Chardonnay, Santa Cruz Mountains

Tasting Jeffrey Patterson's barrel-fermented wine from his site near Saratoga, home to Martin Ray's mid-century plantings, is like reaching into California wine history. This current release is coiled and powerful, packed with scents of lemon oil, cool stone, apple skin and bright mineral. The oak is still a bit forward, but there's such electric acidity that a few years in the bottle is almost necessary. Chardonnay doesn't get more serious than this.

2007 Drew Fog-Eater Pinot Noir, Anderson Valley

From the coastal town of Elk, California, Jason Drew crafts some of California's most subtle, tension-driven Pinots. This blend of two sites (Balo, Valenti) in the valley's northern end brings a dried-flower intrigue that adds tension to shaved cherry ice flavors and complex dry-earth scents. You can drink it now, but this is a wine that you will want to age for some time.