Live as if you were to die tomorrow. Learn as if you were to live forever.
-Mahatma Gandhi


The market continues to shake off worries of a possible economic turn down. Inflation has increased and the possibility of a fed funds rate cut has been postponed until spring, 2008. I would not rule out a quarter point increase in the fed funds rate before year end. Preferred stocks and bond prices, especially longer term bonds, have fallen recently and mortgages have increased. The rate for a 30 year mortgage was 6.74% last week.

Home prices continue to fall as the supply of home for sale continues to grow. Homes are now being listed for sale for months, without one offer. I forecast continued softness in the housing market for another nine months to one year. Energy prices continue to rise, always in time for our summer driving months. Initial claims for unemployment insurance recently hit their highest level since April.



35 mile bike ride to raise funds for Diabetes Research.

Summer is officially underway! I am on vacation while you are reading this and Carol, Diane, Carol P, Joanne and Erin are holding down the fort while I am gone.

My daughter and I raced in the Women�s Las Vegas Triathlon in April, a very hilly and hot course for her. We also rode 35 miles in May for the American Diabetes Association, did the Danskin Triathlon and the Redondo Beach Triathlon. Nikki took 2nd place in Redondo Beach and earned her first time on the podium. We have several more ocean swims and triathlons to do in 2007!

You can not control what happens to you, but you can control your attitude toward what happens to you, and in that, you will be mastering change rather than allowing it to master you. � Brian Tracy


Notes from Carol:

Asset Planning is pleased to welcome Erin Nelsen to our staff. She is a student at Cal State Fullerton and is majoring in Business Administration � with an emphasis in Investments & Financial Planning. She is currently working part-time while going to school full-time. She hopes to graduate in December 2007.

Joanne is off on maternity leave awaiting the birth of her 2nd child. Her baby girl is due August 4.

Meanwhile, I am just trying to keep up with my kids. My eldest daughter graduated high school this June. My 15 year old daughter is taking driving training and my 11 year old son is busy with Boy Scouts, Little League and summer camps. Work is usually where I find my peace and quiet.


Identity Theft � Protect against Phishing

TD Ameritrade and Schwab have been encouraging all of our clients to receive their statements electronically via email notifications and some of you have signed up for this and some of you have not but many of you have computer ids that allow you to view your portfolios on-line, but still receive paper statements. While email and on-line viewing on Schwab and TD web-sites are secure, there is a scam known as phishing in which thieves attempt to get your personal information and steal your identity. Here are some ways to guard against this scam.

� Contact is usually made via an email, pop-up window asking you for your user id and password. They pretend to be TD or Schwab representatives.
� Be suspicious of any request for personal information.
� Keep your browser updated.
� Never reply to an email asking for personal information.
� Never enter sensitive information into a pop-up window.
� Do not click on links in email. Re-enter the address in the browser.
� Check the site address before you sign in.
� Look for the locked padlock or key icon at the bottom of your browser.

Call us at Asset Planning if you suspect someone is trying to get your information.

Enjoy your summer!

Carol Somoano
carols@assetplanninginc.com