Market Commentary
For the week of April 20, 2009

The Market
With first-quarter earnings reports underway, the markets found enough positive to continue its six-week
rally. The rally marks the Dow’s biggest six-week gain since July 1938, and the S&P is enjoying its
longest string of consecutive weekly gains in two years. GE and Citigroup posted losses but fell within
analysts expectations, helping the markets overcome disappointing results from Intel Corp. and Google
Inc. Stocks could see more fluctuations as earnings reports continue over the next two weeks. The Dow
ended the week up 0.64 percent to close at 8,131.33. The S&P gained 1.54 percent to finish the week at
869.60, and the NASDAQ rose 1.24 percent to wrap up the week at 1,673.07.

Source: * Past performance is no guarantee of future results. Indexes are unmanaged and
cannot be invested into directly. Three and five-year returns are annualized. The S&P, excluding “1 Week”
returns, is a reflection of return to an investor, by reinvesting dividends after the deduction of withholding tax.

Energy EfficientTexas has the highest rate of energy generation from wind power, with a capacity of
7,118 megawatts. Iowa has edged out California for second place with a capacity of 2,791 megawatts
compared to 2,517 megawatts. With a combined capacity of 25,300 megawatts, U.S. wind farms could
generate about 73 billion kilowatt hours of power this year, enough for nearly 7 million homes, according
to the American Wind Energy Association.

College Credit Card SlideThe average undergraduate student carried $3,173 in credit card debt in
2008, the highest level since Sallie Mae began tracking it in 1998. In the last study, conducted in 2004,
students carried an average of $2,169 in credit card debt. Graduating seniors left college last year with
an average of $4,138 in card debt, a 44 percent increase over 2004. The average for freshmen rose 27
percent to $2,038. Tuition and fees at public four-year colleges have increased 50 percent in the past 10
years to an average of $6,585, according to the College Board.

Multi-Billion Dollar Month The total capitalization of the U.S. stock market increased by $700 billion
to $9.4 trillion during the month of March. The value of the U.S. stock market was $10.6 trillion at the end
of last year (Source: Wilshire, BTN Research).  

Reduced Housing Inventory The number of existing homes for sale has declined for seven
consecutive months and was 3.8 million as of the end of February 2009. That number was 4.6 million at
the end of July 2008 (Source: National Association of Realtors, BTN Research).   


In 1974, Congress enacted the Employee Retirement
Income Security Act (ERISA), which gave birth to the
individual retirement account. The accounts, originally
limited to workers who were not eligible for a qualified
retirement plan from their employer, allowed a $1,500
tax-deductible annual contribution. In 1981, the
Economic Recovery Tax Act broadened IRAs to all
taxpayers under the age of 70½ regardless of their
eligibility for a qualified plan and raised the contribution
limit to $2,000 plus $250 for a nonworking spouse.
Congress pulled back on the expanded participation in
1986 by phasing out the
IRA contribution deduction for
higher-earning workers covered by employer retirement
plans for themselves or their spouses.

During the 1990s, Congress increased some of the
limits on IRA contributions and created the Roth IRA,
which is funded by nondeductible contributions and allows tax-exempt withdrawals. The nonworking
spouse limit increased to $2,000 in 1996, and in 1997, Congress increased the income threshold for the
deductible contributions phase-outs. In 2001, Congress raised contributions limits and instituted catch-up
contributions for those age 50 and older, a temporary provision made permanent by the
Protection Act of 2006.

While the term
IRA has become practically synonymous to retirement planning, only about 14 percent of
eligible U.S. households made a contribution in 2007. According to an AARP survey, almost one-third of
adults aren’t sure whether they are eligible, and 40 percent are unaware that they can have an IRA and a
401(k) at the same time. In reality, almost anyone can contribute to some type of IRA, whether traditional,
nondeductible or Roth. Contributions to nondeductible IRAs can supplement your retirement savings if
you have maxed out your 401(k) and can help you make up ground if your employer has suspended its
401(k) matching contributions.

Are you and your loved ones making the most of your IRA eligibility? Now may be a good time to review
your planned IRA contributions for 2009, particularly if your employer-based retirement plans have
changed due to the economy. We’re available to help you ensure you are making use of all available
retirement savings tools, and we’re always happy to assist your friends and family as well. Call our office
for an appointment.

* The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of
the stock market in general. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-
chip stocks. NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common
stocks traded on the National Association of Securities Dealers Automated Quotation System. The Morgan
Stanley Capital International Europe, Australia and Far East Index (MSCI EAFE Index) is a widely recognized
benchmark of non-U.S. stock markets. It is an unmanaged index composed of a sample of companies
representative of the market structure of 20 European and Pacific Basin countries and includes reinvestment of all
dividends. Written by Securities America. SAI# 296980
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Returns through 4/17/09
1 Week  
Dow Jones Industrials  
NASDAQ Composite
S&P 500