Let us realize that the privilege to work is a gift, that power to work is a blessing, and that love of work is success. David O. McKay


Our Big News

Bloomberg Wealth Manager Magazine, July/August issue, selected Asset Planning as one of the top wealth managers in the Nation. We are very proud of this honor. We again thank our clients for their continued trust in our abilities. I truly enjoy my work and clients.

Election and possible recall of our Governor

I actually miss the silly commercials for soft drinks, cheese (I like the talking cows) and fast food. I can�t wait until this election is finished and the campaigning and negative political commercials are over. I certainly hope we will have a better credit quality rating for California and lower workers compensation costs in the near future. This is history in the making for California. Remember to vote so your voice is counted.

Jobs gain
The Labor Department said nonfarm payrolls grew by 57,000 last month, much better than the 15,000 decline expected by economists. The August number was also revised to a narrower loss. The unemployment rate stayed at 6.1 percent.
From October 1,2002 to September 30,2003, the Dow gained 18.94%, the NASDAQ gained a whopping 32.06% and the S & P 500 gained 18.51%. I expect the market to give and take since the movement in the past quarter has been great.
This is silly season of reporting earnings. I say silly, since a company such as EBAY can report great earnings and the stock price drops 14%. The reports are based on perceptions and forward internal growth rates. You can always expect added volatility in quarterly earnings season.

Mutual Fund complaints

The New York Attorney General Spitzer filed complaints against four mutual fund companies, alleging improper trading and market timing arrangements with a hedge fund, Canary Capital. He alleged Canary Capital, under agreements with such financial institutions as Bank of America, was granted special trading privileges, including access to illegal late-day trades, in exchange for fees.
Spitzer specifically named four mutual-fund operations -- Bank of America's Nations Funds, Janus Capital, Strong Capital Management and Bank One's Banc One Fund as taking part in the schemes.
At these fund families, only a few mutual funds were involved in the trading. Asset Planning has not used any of the mutual funds that were named in the allegation. This is one of the reasons I believe in such diversification among many funds. I like to spread risk and diversify among fund families and managers, seeking their independent thought process.

Last week's data shows strengthening in both capital expenditures and temporary employment.
Businesses are starting to spend, as indicated by increases in surveys of capital goods companies and temporary employment companies. The capital goods companies survey rose 2.8 points last week to its highest level since 1998�suggesting that old economy equipment capital expenditures probably rose in the third quarter. The use of temporary employees is at the highest level in nine months, another indicator that business is expanding. Industrial Productivity grew last month at an astounding 4.1% annual rate.
Although this looks like good news, there is still a lot of uncertainty about the economy, the course and duration of the recovery, unemployment and growing concerns over medical insurance and the cost of care.

The first wealth is health. Ralph Waldo Emerson (1803-1882)

October is Breast Cancer Awareness Month

Please support the women in your life and encourage them to have regular annual check-ups and mammograms, when they need one. October 13 is the American Cancer Society Women�s Classic Golf Tournament. This is the eighth year I proudly served on this committee. The money we raise from this tournament stays in Orange County to treat women in need of support, treatment, wigs, and to raise awareness. The tournament will always welcome business and individual support and sponsorship. A big thanks to those clients who support this event every year. Please join us next year!

Year End

As we approach year-end, we will be evaluating each portfolio for realized and unrealized capital gains. In light of the new tax law changes, changes may need to be made to some portfolios. For those of you 70.5 years and older, we will have most of the required minimum distributions (RMD) taken from the IRA accounts in November. This would not apply to those already receiving quarterly distributions.

There are only two ways to live your life. One is as though nothing is a miracle. The other is as though everything is a miracle. Albert Einstein (1879-1955)


Please schedule a meeting with me if you have life or employment changes, as these do have a bearing on your portfolio. What I want is to be a great financial advisor, to do an outstanding job for my clients, to make a difference in clients� lives, and to enjoy each and every day.



Sandra C. Field, CSA, MBA, CFP