Market Commentary
For the week of November 30, 2009

The Market
With U.S. markets closed Thursday for Thanksgiving and closed three hours early on Friday, the major
indexes moved only slightly during the week on light trading volume. News on Wednesday of a possible
debt default by Dubai World and Nakheel, a state-owned conglomerate, combined with investors
seeking to lock-in year-to-date gains, caused a broad sell off early on Friday that eased back before the
markets closed. For the week, the Dow ended down 0.01 percent to close at 10,309.92. The S&P rose
0.06 percent to finish the week at 1,091.49, while the NASDAQ fell 0.99 percent to end the week at
2,138.44.










Source: Morningstar.com. * 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. **
Data as of 11/25/09.

50-Year AverageThe average annual total return for the S&P 500 over the past half-century (i.e., the
50 years from 1959-2008) is 9.2 percent per year. The S&P 500 is an unmanaged index of 500 widely
held stocks that is generally considered representative of the U.S. stock market (Source: BTN Research).

A Little HelpThe size of the U.S. economy grew by 3.5 percent in the third quarter 2009 (i.e., change
measured from the end of the second quarter to the end of the third quarter then restated as an
annualized number), the first positive gain reported since mid-2008. An estimated 2.2 percent (of the 3.5
percent rate) came in the areas of 1) vehicle purchases and 2) residential construction, categories that
have been assisted by government legislation (e.g., “cash for clunkers” and the
first-time home buyer tax
credit) (Source: Commerce Department, BTN Research).   

Lots of Money Pumps Income received by Americans that are at least age 65 is derived from
multiple sources: 1) 39 percent of their income is from Social Security, 2) 26 percent comes from job
wages, 3) 20 percent is from defined benefit pension plans, 4) 13 percent is income generated from
assets the seniors own, and 5) the remaining 2 percent of income is from other sources (Source:
Congressional Research Reports, BTN Research).

WEEKLY FOCUS – Long Term Care Insurance: Beyond Nursing Home Needs

A 2009 report from the American Association for
Long Term Care Insurance found that many consumers
associate long-term care primarily with nursing home
care. While nursing home care definitely ranks at the
high end of the long-term care cost spectrum,
long term care insurance (LTCI) may also help cover the
cost of in-home services from nurses’ aides, home
health aides and therapists or services in an assisted
living facility.

LTCI may alleviate the potential burden of you or your
spouse becoming the primary caregiver for the other in
the event of chronic illness or disability. If you have
hereditary conditions that may be passed on to your
children, purchasing LTCI for them when they are younger may help prevent them from being ineligible for
coverage later in their lives.

According to the IRS, premiums paid for qualified LTCI policies can be deducted as medical expenses
up to the 7.5 percent of adjusted gross income (AGI) cap. The policy must: 1) be guaranteed renewable,
2) not provide for a cash surrender value or other money that can be paid or borrowed, 3) provide that
refunds, other than on insured’s death or cancellation of the contract, and dividends be used only to
reduce future premiums or increase future benefits, and 4) generally not pay or reimburse expenses that
would be reimbursed under Medicare.

The amount of qualified long-term care premiums you can include is limited. You can include the following
amounts as medical expenses on Schedule A (Form 1040), according to the IRS:











Health care costs, including long-term care services provided in the home or in an assisted or skilled
facility, can greatly impact your retirement finances. A 2009 study from the Center for Retirement
Research at Boston College found that 47 percent of middle-income adults and 42 percent of high-
income adults are at risk for a lower standard of living in retirement. Those rates would be even higher if
they took healthcare and long-term care into account, the center said.

Your retirement plans should include a thorough analysis of potential risks, including the risk of a health
condition requiring long-term care for you or your spouse. Call our office to schedule an initial review or
update of your retirement plan.


* 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. Barclays Capital Aggregate Bond Index is an unmanaged index comprised of U.S. investment grade,
fixed rate bond market securities, including government, government agency, corporate and mortgage-backed
securities between one and 10 years. Written by Securities America.  SAI# 301744
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advice. Please consult the appropriate professional regarding your personal situation.
Returns through 11/27/09
1 Week  
YTD
1-Year  
3-Year
5-Year
Dow Jones Industrials  
-0.01
21.11
22.06
-2.58
2.21
NASDAQ Composite
-0.99
37.08
57.19
-4.08
0.69
S&P 500  
0.06
23.59
26.11
-5.47
0.48
BarCap US Agg Bond (TR)**
0.39
7.26
11.45
6.45
5.32
MSCI EAFE
-0.18
29.38
37.75
-5.08
4.02
Taxpayer’s Age at Year End
2009 Deductible Amount  
2010 Deductible Amount
40 or younger
$320
$330
Over 40, under 50
$600  
$620
Over 50, under 60
$1,190  
$1,230
Over 60, under 70
$3,180
$3,290
Over 70
$3,980