Summer 2010

84 South Fourth Street

Columbus, OH 43215

P: 614.469.4685

[email protected]

www.BeaconHillAdvisory.com


The Business Wealth Management Process TM

This quarter’s activity: Estate and Legacy varies widely depending on the cli-

ent’s wishes and life stage. For some clients, it’s simply reviewing their benefi-

ciary designations, which are extremely important and sometimes neglected.

For others, we may be helping them implement family meetings to discuss how

they want to pass on assets and values to future generations.

Next Quarter: Insurance and Protection

(Beacon Hill does not sell insurance)

Summer 2010 *ewsletter

We manage financial

matters so you can

f o c u s o n y o u r

business, your family,

and your life.

The Wealth Managers for Business Owners

Market Update:

Our current sunny skies certainly have not

matched the market performance this quarter!

Investors’ concerns about European debt issues

were dampened slightly, and the focus turned to

the overall pace of economic recovery, which you

can see was disappointing from the graph below.

Corporate Retirement

Plans

Change is in the air again for

corporate retirement plans. The

“American Jobs and Closing

Tax Loopholes Act of 2010” had

called for, amongst other things,

service providers fully disclosing

their fees to the employer, and

for the employer to fully disclose

fees that are being charged to participants.

Current Status:

The House approved the legislation, however, the

Senate stripped it out. While it doesn’t appear

that fee disclosure will occur due to this bill, it’s

worthwhile for us to review it as fee disclosure is

picking up steam and they are likely deferring to

the Department of Labor’s expected regulations

that are coming soon (within a month or two).

Cont’d (back)

Equity Markets

(S&P 500)(MSCI EAFE)

(Russell 2000)

Cont’d (back)

Mark Fissel, RFC

84 South Fourth Street

Columbus, OH 43215


The Wealth Managers for Business Owners

Clint Edgington, CFA

Corporate Retirement Plans (cont’d)

Takeaway:

Sponsors need to prepare for full fee disclosure to

participants; the Department of Labor and Con-

gress have been moving that way for some time.

Very few small business owners understand the

full array of non-disclosed fees being charged from

the plan assets and will become vulnerable to the

increased litigation. Since they are personally

liable, this becomes more important.

Market Update (cont’d)

The fixed income

markets had an

interesting quarter,

with a controlled

flight to quality. High

yield bonds showed

surprising resiliency

during a period

where the equity

m a r k e t s g o t

trounced.

Long term rates declined even further, making

us feel a bit “Chicken Little”-ish about our con-

cern on long term bonds. However, we con-

tinue to keep our fixed income maturities

shorter.

Readers will recall that we increased our fixed

income/cash holdings in May, and we are cur-

rently looking for market re-entry now that

prices have decreased some.

Fixed Income Markets

(BarCap U.S. Aggregate Bond) (BarCap U.S. Corporate High Yield)

Seen in the Press:

“What Investment Trends are making an impact

in 2010” by Mark Fissel, RFC

Columbus Business First – 6/25/2010

“Shaky Stock Market puts Low Risk Corporate

Bonds in Play for Investors” by Robert Celaschi,

Columbus Business First– 6/25/2010

-(Clint Edgington, CFA)

Documents

Summer 2010