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Market Commentary
For the week of June 1, 2009

The Market
Wall Street extended its spring rally to a third straight month. The Dow ended May up 4.1 percent, the
S&P gained 5.3 percent last month and the NASDAQ closed May up 3.3 percent. The S&P is up 35.9
percent since reaching a 12-year low in March, marking its longest monthly winning streak since fall
2007. The Commerce Department this week revised the first-quarter gross domestic product (
GDP) to a
loss of 5.7 percent from the 6.1 percent estimate reported last month, still slightly larger than the 5.5
percent analysts expected. The Commerce Department also reported a 1.1 percent increase in first
quarter after-tax profits. The University of Michigan consumer confidence index showed a larger increase
than expected in May. For the week, the Dow gained 2.69 percent to end at 8,500.38, the S&P gained
3.66 percent to close the week at 919.14, and the NASDAQ rose 4.87 percent to finish the week at

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.

Selling MoreExisting home sales rose 2.9 percent to an annualized rate of 4.68 million in April,
according to the National Association of Realtors report released last week. Economists had expected a
slightly lower rate of 4.66 million homes. Average home prices were down 15.4 percent in April from a
year ago.

Why Isn’t Everyone Doing It? Seventy-five percent of American workers have saved funds as of
today for their future retirement. Fifteen years ago (1994), only 57 percent of workers had saved any
money for retirement (Source: Employee Benefit Research Institute, BTN Research).   

They Don’t Realize Even though the average U.S. employer pays $777 per month on behalf of an
employee for
health insurance (assuming a family of four is covered), only 9 percent of employees think
their employer is paying $500 or more per month for health insurance per employee (Source: Kaiser
Foundation, Kelton Research, USA Today, BTN Research).  

No Pay Hike?Social Security benefits have received a formula-driven cost of living adjustment
(COLA) since 1975 (before that date annual increases were set by legislation). The COLA for benefits in
2010 will be based upon the change of the
consumer price index from the third quarter of 2008 to the
third quarter of 2009. Unless
inflation increases over the next five months, it is possible there will not be
any COLA adjustment for 2010 benefit payments. The COLA increase for 2009 benefits was 5.8 percent
(Source: Social Security Administration, BTN Research).   

WEEKLY FOCUS – How to Receive an Inheritance

A survey by Putnam Investments found that most people
who inherit money or property had no previous indication
they would receive anything from a relative or friend’s
estate, and less than 20 percent knew what to do with it
when they did receive it.

The World War II generation, parents of the baby
boomers, saw saving as a way of life, and many
accumulated assets that lasted beyond their lifetime.
Estate planning has become a bigger issue as Baby
Boomers attempts to transfer that accumulated wealth to
their heirs as tax efficiently as possible with the goal of
making life easier for their children and grandchildren.

With more people bequeathing wealth, more people are receiving it – often without the benefit of the
education and planning that helped build and distribute it. They fall squarely in what Ann Perry, author of
The Wise Inheritor: A Guide to Managing, Investing and Enjoying Your Inheritance, calls the triple taboo of
money, death and close family relationships. Parents, especially those with more than one child, may feel
uncomfortable discussing who gets what for fear of causing rifts. Children feel guilty asking questions
about what they will inherit for fear of looking greedy.

That leaves heirs ill-prepared to receive their inheritance. Some respond with a spending spree, while
others become paralyzed by fear they will make a mistake and disappoint or dishonor the parent who
worked so hard to leave them a cushion. Even if the heir manages to find a middle ground, an
unexpected inheritance can push him into a higher
tax bracket or trigger the alternative minimum tax.

Communication may be key, but that doesn’t make it easier for parents and children to talk about how
wealth will be transferred at the parent’s death. An intergenerational estate plan that looks at the parent’s
need to mitigate taxes and distribute wealth and at the impact that wealth will have on the recipient can
help families work through the taboo issues. Whether you are the parent or the child, we can help initiate
those conversations that will help ensure that both generations are ready for the inevitable.

The Securities America companies and their Representatives do not provide legal or tax advice.

* 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# 297858
Returns through 5/29/09
1 Week  
Dow Jones Industrials  
NASDAQ Composite
S&P 500