http://eba.benefitnews.com/news/financial-principal-workers-retirement-decisions-2723436-1.html

What is even more encouraging is the anecdotal information that we continue to see around us. Unemployment has fallen. Businesses are reporting increasing orders and profits. Companies are raising their dividends. While Europe seems to be dipping back into recession and China has slowed down, the United States is getting back on its feet and expanding.

There is still some concern that Europe and or China will drag on our economic growth this year. The U.S. presidential election this fall could create some political turmoil as well. That being said, we are investing in solid companies that we feel will provide above average returns going forward.

As we continue to move our firm into the 21st century, Cantlon Financial Planning is now on Facebook. Visit our website at www.cantlonfinancial.com and click the “Like us on Facebook” button on the right side of the screen. When you Like Us on Facebook, articles that we find interesting will show up in your Facebook Newsfeed. Our plan is to find one newsworthy article each week to highlight for you. This is just one more way for us to keep you informed and educated about your financial well-being.

Very truly yours,

Michael F. Cantlon

Enjoy.

A Day in the Life of a Financial Advisor
by: seyah21

We recommend that you read this Smart Money article to better understand some of the fees that the 401k industry charges.

Although we worked hard to rise above the thundering herd, our results were disappointing. We kept your assets safe, but growth eluded us. The companies we are invested in are making robust profits, pay handsome dividends and have, we feel, enduring earnings growth potential. Coupled with our covered call writing, it’s a strategy that has stood us in good stead over many years.

Unemployment, real estate values, and political chaos here and abroad weighed heavily on the economy. A presidential election will add to investors’ concerns in 2012. Although the New Year will begin with these negatives, we are seeing some signs of gradual improvement. The unemployment rate is in steady decline, the U.S. manufacturing sector continues to expand and construction spending is rising with gains in new home construction.

Now for the big news. After 28 years as a sole proprietor, we have formed Cantlon Financial Planning, LLC as our business structure for the future. This has allowed me to formally recognize Tom Guyett’s contribution to our success by issuing a membership interest to Tom. I am encouraged by Rob Gephart’s progress and believe he will one day develop into a member, with a vested interest in our results.

IMPORTANT: Pursuant to Sec 205[80b-5](a) (2) of the Investment Advisors Act of 1940 we need your approval to conduct business on your behalf due to our firm’s change. By making all future fee payments to Cantlon Financial Planning, LLC or CFP LLC, you will be acknowledging your consent, assigning the management of your accounts to the new entity.

Otherwise, it is business as usual. I work with Tom and Rob daily on investment strategy and selection to keep your investments sound. We thank you for your continued trust in us. As always, we welcome your inquiries and hope that you will plan to visit us this year.

Tax season is soon approaching. Once again we are offering income tax preparation through Rick Carlson. If you want Rick to handle your tax work, please gather your tax documents for submission in February.

Very Truly Yours,

Michael F. Cantlon

Stock values have collapsed in recent months as investors became fearful after observing ridiculous behavior in Washington, D.C. and confused, ineffective actions by the European Union. Both bodies have shown an unwillingness (inability?) to deal with embedded fiscal problems. Until they get their acts together, we are in trouble.

Because our fate is in the hands of politicians, we have good reason to be worried. Volatility in the equity markets is at levels that I cannot recall. 2%, 3% and even 5% movements in market averages are not unusual on a daily basis.

We have made some trades to decrease our exposure to this volatility and to raise our cash level to approximately 30%. We have been humbled as our earlier profits for 2011 have turned into losses despite these measures. We believe our portfolio is well diversified and very cheaply valued by any historic view. We now await prudent actions by our elected officials to indicate they are aware and in charge.

I do not expect the pols to save us. That is not a job they are up to. My hope is that they can do their jobs and let the economy recover from three decades of excessive spending and debt accumulation. Let the government become part of the solution or at least stand aside.

Our citizenry has learned some important lessons that will serve them well, but repairs to household balance sheets take time. Consumer spending has held up well during this period of repairs and should benefit from pent-up demand after confidence is restored.

I believe we are well positioned to benefit if and when the political smoke clears.

Very truly yours,

Michael F. Cantlon

Rob and Tom are now located at our new office at 41W 455 Brierwood Drive, Saint Charles, IL 60175.

The land line there is 630-549-0826.
Tom’s cell phone number is 847-322-0291.
Rob’s cell phone number is 630-492-0720.

I continue to work from my home where our mail is still directed and can be reached at
630-584-4508. I spend some time each day at the Brierwood address so that we are all on the same page.

The first half of the year, although volatile, ended with acceptable investment returns and many questions about what lies ahead for the second half and 2012. Washington appears unable to contribute much to the economic recovery so it seems that the private sector will carry the burden. Unemployment, housing and debt issues are major problems that will recede only slowly. Lower returns on our investment portfolios are probable considering the economic environment and pinched values for call options as a result of lower speculation in the overall market.

Very truly yours,

Michael F. Cantlon

Rob comes to us with almost 20 years of experience in new product development, management and business. He is a graduate of Notre Dame with an MBA from Aurora University. He resides in St. Charles with his wife and two children. Welcome Rob!

The first quarter shows us with three positive months…Our solid results did not keep pace with the stock equity indices since we were rather conservatively positioned with our option strategy providing more downside protection than proved necessary.

The stock market has benefited from a gradually improving economy. It also is the “only game in town” as fixed income and real estate investments are largely out of favor. The market has remained resilient against international disaster in Japan, Middle Eastern unrest and domestic financial challenges.

We continue to be rather conservative in our investment posture since the risk/reward picture is not compelling. Stocks are probably reasonably priced by historic standards and large gains in productivity and profits are not likely. Similarly, risks are not apparent as money flows should favor equities going forward.

We see our role as managers of your investible funds with emphasis on security of principal. We also feel a growing responsibility to assist you in achieving (or continuing) a successful retirement. Please call us to discuss strategy in detail.

Very truly yours,

Michael F. Cantlon

Thomas E. Guyett

We continue to see anecdotal indications that our economy is gradually mending. At the same time stock valuations do not appear excessive on average, and some can be considered cheap.

These are positives for further gains in 2011. On the other hand, option premiums are near their lowest ebb and will reduce our expected returns. Housing and unemployment will continue to be a drag on the economy. Dividends are good and improving slightly. We still do not see fixed income as viable investments as yields are near all-time lows.

Therefore, net, net, the coming year looks promising but not as lucrative as 2009 or 2010. We cannot expect every year to bring double digit returns and we want to keep preservation of your assets first among our priorities.

Since Uncle Sam is tightening the regulation of income tax preparers, we will work with Rick Carlson who will go through the headaches of compliance and prepare the returns. We will assist Rick and review the completed returns but he will sign them. If you are a tax client, it’s time to start accumulating your documents for submission in February.

Very truly yours,

Michael F. Cantlon

Thomas E. Guyett