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Every Friday - Week in Review

01-28-2010 Financial Commentary

01-25-2010 Oct/Nov FourBits News

01-11-2010 Tax Updates

12-03-2009 Wealth Management Solution Overview

2009 4th qtr tax estimates due 1-15-2010

2009 Max Contributions:     Age50+                       Roth & Trad. IRA  $  5,000     $  6,000
401(k)                 $16,500     $22,000                    Simple IRA          $11,500     $14,000

December 2009 Market Update

We are now 27 months into the current bear market.  The S&P 500 Index hit a 12-year low on 3-9-09, -56% below its highest ever level on 10-9-07*.  Unemployment currently stands at 10%¹ in the U.S. (8.1% in WI, 7.6 % in Fond du Lac).  This high unemployment and fear of spending has slowed the bounce back in U.S. consumer spending.  The major concern is that over 2/3 of the U.S. economys Gross Domestic Product (GDP) is linked to consumer spending.  High personal debt levels subdue more borrowing and allow spending based off of current incomes only.  The downside of lower spending is that it may negatively affect our progress towards a recovery.  The upside is that consumers are saving more with the U.S savings rate reaching almost 7% through mid 2009.  One staggering statistic is that the 3^rd Quarter numbers show that 14 out of every 100 mortgages in the U.S. are in foreclosure or have delinquent payments**.  Just as the market fell quicker than most would expect, it now appears to be just the opposite with the markets surging since March of 2009. We expect more volatility of this nature to continue over the next 2-4 years and potentially one or more corrections as conditions quietly improve.

 *Bottom                                 Rebound Length        Rebound %                             Following Correction %

July 8^th, 1932                           2 months                     +94%                                      -37%

March 9^th, 2009                        9 months (so far)          +63% (to 12-7-09)                    ?

October 4^th, 1974                     23 ½ months               +74%                                      -27%

We still maintain that long-term investors stay the course through times of high anxiety.  If you are having a difficult time staying the course, there are risk management techniques we can apply to your portfolio that may help in stemming future losses, but may also limit your portfolios potential upside if markets continue their ascent.  If you are near retirement or have layoff concerns, set up an appointment so that we can review your portfolio (to include employer retirement accounts). Many plans permit age 59 1/2  in-service 401(k) rollovers.  You may want to consider this as it gives you more investment choices while preparing for the future.***    

FFG Wealth Management Solution

This new system incorporates comprehensive financial planning and account aggregation (accounts here, 401(k)s, bank accounts, mortgages, etc.) through our website.  There is an annual consulting fee of $250 if you wish to have access to this service.    Click here to view a short video on how the system works and how it may benefit your situation.

Registering Your Assets

Transfer on Death and Payable on Death registrations are discussed.  If you have Individual taxable accounts and do not have a Trust, we highly recommend that you sit down with us or inquire about this type of registration on your accounts here and elsewhere. Click here to see the entire article

Business Hours January 1^st, thru April 15^th,2010

Monday-Friday             8AM      TO        5PM     (other hours by appointment only)

Saturday                      8AM      TO        Noon

Sunday                        Closed    

Thank you

Thank you for your confidence and trust during these volatile times.  We will continue to work diligently to assist you in reaching your financial milestones.  I request that you share this letter with your co-workers, friends and family who may be worried about their investments and/or financial picture.  We have the capacity to service more valuable clients like you and would appreciate your referral. 

Sincerely,                                

Mark W. Feucht, CFP, EA, Partner, Principal, NPC

Jeremy Feucht, Partner, Principal, NPC

Jeff Nielsen, Investment / Tax Consultant

Chad Muehlbauer, Investment / Tax Consultant

Jake Harmsen, Investment / Tax Consultant

¹Wisconsin Dept of workforce development. Returns reflect the performance of the S&P 500 Index (a registered trademark of the McGraw Hill Companies), an unmanaged basket of 500 stocks that are considered to be widely held and thus believed to be an indicator of overall market performance. This index of common stocks is weighted by market value. Returns for the S&P 500 Index are calculated on a price-only basis without dividends and capital gains distributions, reinvested.  Investors cannot invest directly into the S&P 500. **MFS Investment Mgt 11-20-2009 economic update report.  ***Factors surrounding 401k in-service distributions such as individual’s tax situation, types of investments held, potential increase in fees, source of funds, and vesting periods must be carefully reviewed.  Consult with a financial professional prior to implementing any strategy.