August 2009
Issue: 72
Welcome
 
Greetings!

Volunteering is a big part of our lives. We believe that it's important to give back to ensure our community is a great place to live, work and play. Recently, we both completed serving three years as board presidents for different organizations. Bill for Mayflower RSVP and me for the Plymouth Philharmonic Orchestra.

Some days were challenging balancing the issues or the time commitment. It has been a terrific way to learn new or sharpen existing skills--communication, leadership and public speaking. Personally, I have grown "comfortable" being able to address an audience of more than 1,000 people.

As we reflect, we are so grateful for the people we've been fortunate enough to serve with and meet. Many of us would not have crossed paths. Now we count each other as friends. It's an amazing feeling knowing that your contributions have shaped the future.

In September, we'll be volunteering on behalf of the Financial Planning Association of MA to help a military unit from Otis Air National Guard base in Falmouth. They are getting ready for deployment. We'll be advising them on their personal financial decisions so their families can, hopefully, have financial peace of mind while they are serving our country.  We are grateful to be able to give back to help those who keep us safe every day.
Paula Signature
From Bill's Corner...

Many clients are asking us about leveraged funds.  Our advice, stay clear!

Repeatedly over the past two years, US securities regulators have warned investors that leveraged funds can lead to big losses, even if the market goes up.  We agree!

Leveraged funds use techniques such as swaps or options aiming to amplify the one-day returns of their target index.  A widely held misconception about these funds is that they will offer twice the return of the underlying index, which means that if the S&P 500 returns about 10% a year, then the 2x the S&P should return 20%. But that's not true. These funds only double the daily return, and there's a big difference between doubling the daily return and doubling the annual return.  Let's say that one day the market goes up 10%, and the next day it falls 10%. The two-day loss for the index is 1%, but the loss for the leveraged fund is 4%.  The losses are magnified.

Investors have a temptation to "double down" by using these funds to quickly make up the losses from last year.  I want to reiterate our advice, stay clear!  Feel free to inquire if you need more info.

Bill signature

Time to Share. Create a Buzz.

Can you feel the excitement in the air? It's Marshfield Fair time! Actually, it's the 143rd annual. There is something for everyone. Midway rides. "Fair food". Demolition derby. Horse pulling. And live music! My favorite parts? 4H and the Exhibition Hall. My mother still has my ribbons from entries as a kid. Next time we meet, ask me about catching a pig in a scramble.

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Your 41 pounds of junk mail

You can put your mailbox on a diet -- by reducing the unwanted solicitations and catalogs that weigh it down. Here's how to lighten your load and be kinder to the planet.

Read on...

In This Issue
Your 41 pounds of junk mail
Pick a planner who can spell 'fiduciary'
Stocks 105: The purpose of a company
Are you a smarter investor than a 5th-grader?
Have card, will travel
The world's worst travel scams
About us
Pick a planner who can spell 'fiduciary'

Like many people, especially in these financially unsettling times, I long for someone to look at our portfolio - such as it is - and tell us how to manage everything so that we can send both our children to the college of their choice, retire at 65 and be able to send postcards from exotic locations to our future grandchildren.
[WH Cornerstone Investments is a fiduciary.]

Read on...

Stocks 105: The purpose of a company

Before you buy a business, make sure that you understand how a good business makes money for investors. Here's what you need to know.

Read on...

Are you a smarter investor than a 5th-grader?

You'd be hard-pressed to outdo the young players who topped a stock market contest by following 5 principles.

Read on...

Have card, will travel: A guide to traveling with a credit card

Planning a vacation requires more than just booking a flight, packing sunscreen and withdrawing foreign currency. You also have to take steps to ensure it's safe to use a credit card while you're traveling. Before you book a plane ticket or buy a souvenir shot glass, follow these tips to protect your credit.

Read on...

The world's worst travel scams

There's no shortage of thieves out there, both at home and abroad, cooking up ways to get their hands on your money. Here are some of their favorite travel scams.

Read on...
About us

WH Cornerstone Investments, LLC provides wealth management services to a select group of clients. Regardless of their background or future vision, all of our clients commit to a plan that targets their long-term financial growth and stability. While some of our clients concentrate on one part of their investment strategy, others opt for a more holistic approach.

WH Cornerstone clients demand customized objective, expert advice, which they know can come only from a firm that is truly independent-a firm not tied to financial institutions. As an independent Registered Investment Advisory firm, we are fee-only and therefore free from any outside institutional influence.

Cheers
,

Paula Harris and Bill Harris, CFP
WH Cornerstone Investments
781.934.9154
www.whcornerstone.com

Sound, visionary stewardship