First the Good news�..

I am very pleased to announce the addition of another financial planner to our team at Asset Planning, Inc. Diane, Carol and I welcome Beverly Cox to the staff. I have known Bev for several years as we have played golf together. We have also worked on several projects together over the last year. Our philosophies about financial planning and investments are similar and I am sure she will be a great addition. Bev brings fifteen years of experience to the firm. Her bio is posted on our web site.

In local events, I should be featured in the LA Times on Tuesday, October 15 in a new �money makeover� column. I just finished another �One on One� for the OC Register (copy enclosed) and was quoted on the front page of the OC Register following the latest fed rate cut. I remain on a panel of experts for their mutual fund quarterly review, published on 9/30/01. This keeps me on my toes!

And then the Bad news�.

This has been a quarter like no other ever experienced by the American people. We are at war due to an attack on our own land. It still seems unbelievable and incomprehensible.

Where is our economy now? When people and businesses stopped buying new items, companies stop ordering parts and supplies for products and let their supply or surplus inventory be sold without replacing it. When companies are not producing at the same level as before, due to lower projected sales, layoffs of workers and cut back on expenses occur. This is the scenario that we have all seen since the beginning of the year.

The stock market values the price of stocks by looking to future earnings and sales of a company and tries to determine what it will be worth. When the market saw the earnings potential of companies being reduced, it lowered the prices of the stocks through sales until the current estimates equaled the value of the stock. In short, the market declined and was staying that way since there was no good news on the horizon. For the first time in several months, I was seeing positive signs coming from the manufacturing sector. In the days surrounding the attack, numbers were released that showed manufacturing orders were increasing as companies began placing new orders. This meant that things were picking up. This could have been just what was needed for the market to look forward to increased sales, thus rising stock prices.

Then the attacks came and America virtually stood still for several days trying to comprehend what had happened. In this aftermath of human and business destruction, we find damage to the economy. The travel, insurance and leisure industries were hard hit. The layoffs from these industries will continue until Americans go back to flying and traveling as we did before. This will only come when we feel safe to do so. I know we will never feel as safe as we did before the attacks, but we will return to our way of life as we knew it. In time, we will resume taking vacations and going to conferences and doing business as we did.

I met with clients in the weeks following the attacks and one theme stood out in each meeting. They felt guilty for worrying about their portfolios when human lives had been lost. Some clients emailed me to see how I was doing, giving me support. Some brought in checks to deposit to their accounts, wanting to support the market by purchasing, instead of selling, stocks in uncertain times. We displayed our flags, lit candles and cried together to get through these past weeks. I miss my dad more and wish he were here to tell me more stories about how he fought twice as a Marine for our American freedom, many years ago. I watch our Armed Forces ready to fight a new war, knowing action must be taken.

How the market will react is still an unknown. I am encouraged by the markets behavior in the last week, with most stocks and funds rising. Historically, the stock market recovers well following major events such as this. Some portfolios saw their values rise 5 to 7% in the week following the quarter end. I continue to monitor the funds very closely and stay in contact with the fund managers. We do have the strongest economy in the world and America is the greatest Nation. We will recover and prosper in 2002.

Please call if you have questions or wish to schedule a meeting.

God Bless,

Sandra C. Field, CSA, MBA, CFP