09/25/2006

Rounding Third Base

Hello:

We are rounding third base for 2006. Next week, third quarter earnings will begin to be reported, and they are expected to be good. These earnings expectations, and the fact that 2007 is the third year in the Presidential Cycle, indicate that 2007 may be a very bullish year for the domestic equity markets.

The Pension Protection Act of 2006 (PPA) allows for the rollover of a 401(k) to a Roth IRA, with the rollover treated as a Roth conversion. A Roth conversion requires the payment of taxes on the amount converted in the year converted.

Terri G. Millson, CIMA, CIMC President

Ray Dicius, CSA, GEPC LPL Branch Manager