Happy Holidays_ Year-end Wrap Up Keeping Your Records Straight

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					                                                  McGEE FINANCIAL

                                                                 Strategies              An Independent Registered Investment Advisor


      Inside this issue:                            Happy Holidays! Year-end Wrap Up
Keeping Your Records                              In spirit of the holidays and the end of      Now it’s
                                                  the year, we wish you good cheer and a        time to look
Straight                                          bright future in the coming year. This        forward and
What to keep, what to shred. . . . Page 2         special year-end newsletter is our way of     to remind you
                                                  saying thank you for being part of the        that year-end
Giving Back                                       McGee Financial family and to share           tax planning
We’re all in this together . . . . . . . Page 3   with you a quick overview of 2010 and         is always an
                                                  a hint at what next year may bring.           important part
“Let ‘Er Buck!”                                                                                 of your finan-
                                                  With the dramatic events that have taken      cial strategy.
We saddle up for the Centennial
                                                  place in the world of finance, we under-       Any year you
Pendleton Round-Up . . . . . . . . . Page 4       stand how important the numbers are to        have a new
                                                  our clients. They’re very important to us     administration, it can be a dramatic year
Social Security                                   too, but not as important as you are.         for planning. But this year, 2010, has
When to start collecting . . . . . . . Page 5                                                   been particularly tricky due to some
                                                  We’ve helped navigate through some
                                                                                                expiring tax provisions, a legislative
Team Spirit                                       turbulent and challenging economic
                                                                                                agenda wrapped around midterm
A tradition of service . . . . . . . . . Page 6   times in 2010, and as we’ve demonstrated
                                                                                                elections, and the level of inaction by
                                                  in the past, the bigger the challenge, the
                                                                                                Congress. Estate and financial planners
Website Resources                                 more satisfaction we find in coming up
                                                                                                have been advising clients amid a lot of
Travel tips, crafting, more . . . . . . Page 6    with solutions.
                                                                                                uncertainties considering what might
                                                  While we’ve worked hard, we still found       happen next year to both income and
Q4 2010 Review                                    ways to give back to the community,           estate tax laws.
Economic and market reviews . . Page 7            and we picked up some welcome awards
                                                                                                The dynamic political environment and
                                                  along the way. We also took time to
Q1 Events Planned                                                                               continuing volatile economy are making
                                                  have some fun. You can read about our
                                                                                                future planning even more complex.
  • Jan. 6: Vancouver Rotary Speech Royal         participation in the annual Pendleton
                                                                                                We’d like to offer a few ideas.
    Oaks Country Club                             Round-Up and see photos of the event
    8917 NE 4th Plain Rd., Vancouver, WA          with Jennifer Currin Gutridge, CFP®,
                                                                                                                    Continued on page 2
                                                  and 1991Round-Up Queen, on page 4.
  • Jan. 25: Client economic conference call
    with Milton Ezrati, Partner, Sr. Economist
    & Market Strategist at Lord, Abbett & Co.            Keeping Your Records Straight:
  • April 16: Shred Day. Free to clients. Bring             What to Keep and Why
    a Friend. Services provided by Cintas
    Document Management                                                                                    People often ask, “What do
                                                                                                           I do with all these papers?
McGee Financial                                                                                            What do I keep and what can
12455 SW 68th Avenue, Portland, OR 97223                                                                   I pitch?” Year-end is a good
Phone: 503.597.2222 Fax: 503.598.8515                                                                      time to make sure your
email: news@mcgeenet.com                                                                                   essential documents are
www.mcgeenet.com                                                                                           organized. The process of
                                                                                                           filing your tax returns will be
                                                                                                           far smoother if you can simply
                                                                                                           pull out a few files and have
                                                                                                           instant access to information
                 McGEE FINANCIAL                                                                           about your income sources,
                      An Independent Registered                                                            expenses, and investment
                             Investment Advisor                                                            records.
                                                                                                                     Continued on page 2.
         Keeping Your Records Straight: What to Keep and Why
Continued from the front page.                    The rules can be confusing. Some qualified           • Keep all employment tax record for at
                                                  plans will allow certain participants to defer        least four years after the date that the
Here’s a quick list to follow:                    beginning their RMDs until they retire, even          tax becomes due or is paid – which-
Everyone should have these                        if they are older than 70 1/2. Qualified plan          ever is later.
basic documents available.                        participants should check with employers to
                                                  determine whether they are eligible for this      Even if none of these situations apply, it’s
Income sources:                                   deferral.                                         advisable to keep copies of your filed tax
  • W-2’s                                                                                           returns so you can refer to them when
                                                                                                    preparing future tax returns or amending
  • 1099 and K-1’s                                How Long Should You Keep                          older ones. You may also need older tax
  • Bank statements                               Your Records?                                     returns if you challenge your Social Security
  • Brokerage statements                                                                            records.
                                                  You must keep your tax records until the
General Expenses:                                 period of limitations for the return runs out.
 • Sales slips and receipts                       That’s the time in which you can amend
                                                  your tax return to claim a credit or a refund.
 • Invoices
                                                  It’s also the period when the IRS can assess
 • Cancelled checks                               additional tax.
 • Charitable contribution letters or
   receipts                                       Keep documents relating to property records
                                                  until the period of limitations expires for the
Property Records:                                 year in which you disposed of the property.
 • Closing statements                             These records include any depreciation,
 • Purchase and sales invoices                    amortization or depletion deduction. Keep
                                                  anything that supports the calculations for
 • Proof of payment such as wire transfer
                                                  gain or loss when you sell or transfer the
    or cashier’s check                                                                              Keep or Shred?
                                                  property.
 • Insurance and property tax records
                                                  Here’s a list of records and how long they        If you received property in a nontaxable
 • Improvement expense receipts
                                                  should be kept:                                   exchange, your basis in that property is the
Investment Records:                                                                                 same as the basis of the property you sold,
  • Mutual fund and brokerage statements            • Failing to file a return – keep support        increased by any money you paid. You must
                                                      records indefinitely.                          keep the records on both properties until the
  • Form(s) 1099, 2439, and K-1
                                                    • Failing to report income that exceeds         period of limitations expires for the year in
Additional documents might include those              more than 25% of the income shown             which you dispose of the new property in a
related costs and expenses for your home              on your return – six years.                   taxable disposition.
business, square footage dedicated to your          • Owing additional tax but none of the
work space and storage, and any employee                                                            A good guideline is to keep all tax records
                                                      above conditions apply – three years.         for at least seven years. Consider scanning
expenses.
                                                    • Filing a claim for a refund/credit after      these documents, saving them electronically
You’ll also want to have records of any               filing your return – three years from          to a disk and storing them securely.
income from IRA’s and 401(k)s. Some people            the filing date or two years from date
                                                      tax paid – whichever is later.                It can be fun and emotionally cleansing to
have made costly mistakes by miscalculat-
                                                                                                    burn or shred all the extraneous notes and
ing their Required Minimum Distribution             • Filing a claim for worthless securities
                                                                                                    scribbles that really don’t relate to taxes.
(RMD) or forgetting to take it before April 1st       or bad debt deduction – seven years.
                                                                                                    We’ll celebrate a free “shred day” Saturday,
following their 70 1/2 birthday. Penalties for
                                                                                                    April 16th. Bring a friend.
under withdrawing can be as high as 50%.




              Happy Holidays! Year-end Wrap Up Continued from the front page.
As the heat of the mid-term election year         We encourage you to refresh your planning         experience in financial planning, wealth
cools into the winter, tax policy will become     this coming year.                                 management, insight and understanding to
clearer. You can only imagine the educa-          As we move into 2011, the McGee Financial         help you continue to realize your dreams.
tional sessions your financial planners have       team remains committed to your personal           Your passions are our passions.
attended to stay abreast of economics and         success and quality of life, and in helping
government policy that affect your future.        enhance your prosperity, regardless of what
Planning is always about cash flow and tax.        phase you are in. We’re proud to share our

                                                                     page 2
                       Giving Back: We’re All in This Together
It seems that we’ve been even more involved       We agree with all those definitions, only         Your approach to sharing depends on your
in giving back this year. The McGee team          it isn’t necessary to try and measure up to      objectives. Some choose to build a living
feels strongly about volunteering and chari-      the world’s concept of a “philanthropist.”       legacy that they can see others enjoy while
table giving to support causes in our commu-      That title often conjures up images of those     the donor is still alive, while others may
nity. We are committed to helping those in        whose names appear on shiny new wings of         name multiple charities as benefactors in
need and over the years have made philan-         art museums or hospitals. But anyone who         their wills. There’s a range of solutions that
thropy a tradition. We also honor clients         gives to others in need—whether for food or      we can help you tailor into your charitable
who share our values.                             shelter, education or information, respect or    giving plans.
                                                  love — is a philanthropist.
Once individuals and families feel they’ve                                                         In our experience, joy in giving comes from
achieved financial and emotional indepen-          Our friend, Victoria Trabosh, introduced         a feeling that we are making a difference.
dence, they often want to share some of           us to the Itafari Foundation, whose vision it    Below are just some of the organizations
                                                                                                   McGee Financial has the pleasure of
                                                                                                   supporting. Please visit their websites to
     “I don’t think you ever stop giving. I really don’t. I think it’s                             learn more.
     an on-going process. And it’s not just about being able to                                      • Cafegive.com www.cafegive.com
     write a check. It’s being able to touch somebody’s life.”                                       • Children’s Heart Foundation
                                                 — Oprah Winfrey                                       www.childrensheartfoundation.org
                                                                                                     • Itafari www.itafari.org
                                                                                                     • Metropolitan Family Services
their good fortune with causes that speak to      is that every Rwandan has the opportunity            www.metfamily.org
their hearts. (The Pacific Northwest has a         to dream of a better life. Itafari Foundation
particularly strong tradition of sharing with     is proof that a small organization can have        • Oregon Community Foundation
others.)                                          a tremendous impact. For details, visit their        www.oregoncf.org
                                                  website at: www.itafari.org                        • Oregon Public Broadcasting
Why do we give?               Psychologists                                                            www.opb.org
have argued that the main motivation is           We’ve given our money and our time, but
self-interest and self-preservation. But the      by using Cafegive.com for our office                • Portland Impact www.impactnw.org
simple fact remains; giving our money to          purchases, travel and online shopping we           • Portland Rose Festival Foundation
others makes us feel good. It allows us to feel   make our dollars go even further.                    www.rosefestival.org
that we are giving back to society, especially                                                       • Social Venture Partners Portland
                                                                           Cafegive’s model
                                                                           helps advertising           www.svpportland.org
                                                                           money go to our           • William Temple House
                                                                           charities of choice.        www.williamtemple.org
                                                                           It’s the same             • YWCA www.ywca-pdx.org
                                                                           dollar, it’s just
                                                                           working much
                                                                           harder. Check out
                                                                                                     Our clients in Spokane are giving back
                                                                           this wonderful
                                                                                                     both locally and internationally.
                                                                           website and join us
                                                                           in adding one more        Healing Hearts Northwest/UJAMAA
                                                                           way to give back.         Medical Connections is a group of
                                                                           www.cafegive.com          healthcare professionals who collaborate
                                                                                                     with international communities in need
                                                                            There are many
                                                                                                     to provide healthcare service, education
                                                                            ways we can all
                                                                                                     and training.
                                                                            help others, even
                                                                            for those operating      www.healingheartsnorthwest.com
                                                                            on a tight budget.
                                                                            Donating canned
                                                                                                     Step Up Spokane is a non-profit com-
                                                                            goods to a food
when we can see positive changes around us.                                                          munity initiative that’s collaboratively
                                                  bank to help needy families in our commu-
Various online dictionaries define philan-                                                            led by local health organizations.
                                                  nity is a simple philanthropic act with direct
thropy as: goodwill to fellowmen; active          benefits. The Toys for Tots fundraiser is           It’s mission is to improve the health of
effort to promote human welfare; a desire         another. Simply put, if we are driven to give      the community and help connect those
to help mankind that may be motivated by          our time, talent and/or treasure to those we       who share struggles and successes of
a sense of civic duty, or simple compassion       can help, or to make a positive change to our      staying fit and healthy
for those in need, as in supporting socially      society, we are philanthropists.
useful purposes. Another term used was                                                               http://stepupspokane.org/site/about_us
“philanthropist.”
                                                                     page 3
                                                     “Let ‘Er Buck!”
                   We Saddle Up for the Pendleton Round-Up
Wow, what a fabulous experience to share the excitement of
Pendleton Round-Up’s week-long 100-year celebration!

Our own Jennifer Currin Gutridge, CFP®, and 1991
Round-Up Queen, has deep ties to eastern Oregon and
the Round-Up event. Jennifer and other former Round-Up
court members had a very busy week attending many
events including riding in the Round-Up parade.

In the book, “Let ‘er Buck! A history of the Pendleton
Round-Up,” they write, “Success bred success and the
Round-Up has stayed in high gear.”

It’s the amazing community participation and volunteers
that make the event a winner. It is estimated that around
100,000 people attended this year.

McGee Financial made this year’s Round-Up an opportu-
nity to celebrate with clients and friends living east of the
Cascades, although a few made the journey from a greater
distance to Pendleton for the week.

Here are some of our favorite photos of the Round-Up                     Jennifer Currin Gutridge, 1991 Pendleton Round-Up Queen, rides in the Westward Ho
and the Hamley’s party. Enjoy.                                           parade with Princesses Lois Ward and Tonya Hauser Johnson, all wearing their1991
                                                                         split-leather outfits
A green-horn witnessing the event for the first time will
discover that it’s not just about the cowboys. Indian
participation is an equal part of the event with Happy                                                                     John & Carole Skinner shared their
Canyon, the Indian Village, and beautiful horses and                                                                       family book, “High Desert Promise,
costumes of the Westward Ho Parade.                                                                                        The Skinner Family Legacy”
The Pendleton Round-Up honors the culture of the ranchers,
cowboys, and Indians.




                                                                                                                           McGee Financial Grand prize
                                                                                                                           drawing winner Andrea
                                                                                                                           Waldrop with Jennifer.




Happy Canyon Princess – The active
Native-American presence has kept
the Round-Up distinctive. The
Indian village at the Round-Up
is the largest encampment on the
professional rodeo circuit.

                                                                                                                            Tom Currin, 2010 Inductee to
                                                                                                                            Pendleton Round-up & Happy
                                     Photo by Linette Dobbins catches bull rider                                            Canyon Hall of Fame
                                     being thrown into the air.                                                             (volunteer category)
                                                                             page 4
                 Should you collect Social Security early?
                             Consider this:
Most people have little understanding of        What happens to my payments if                 The SSA will review the request, which, if
Social Security. A lack of knowledge about      I collect a Social Security check              granted, will require you to repay the SSA
“the rules” can compromise a planning                                                          all of the payments you and other parties
                                                and continue to work beyond my
strategy - possibly leading to acceptance of                                                   collected. You’ll then need to re-file.
retirement benefits upon eligibility. Informed   full retirement age?
workers, however, may be able to collect                                                       This opportunity may be short-lived. “Social
                                                The Social Security Administration recalcu-    Security has sent a proposed regulation to
additional income.                              lates benefits each year someone continues to   (the Office of Management and Budget)
Dennis Day and his wife, Mary, want to          work. The calculation is based on a person’s   for review that would establish a 12-month
retire in three years. Dennis is 62 and Mary    “best 35 years.” If someone is making more     time limit for the withdrawal of a retirement
is 59. They earn $200,000 and $50,000,          money, benefits will rise.                      benefit application. The proposed regulation
respectively. Prior to completing their                                                        would also permit only one withdrawal per
financial planning, they                                                                                        lifetime,” said Mark Lassiter
planned to take Social                                                                                         of the SSA.
Security benefits when
Dennis turned 62.                                                                                             This may be important
Their financial adviser                                                                                        because paying back the SSA
cautioned them.                                                                                               is without interest, and there
                                                                                                              can be a significant advantage
Because Dennis would still be                                                                                 to taking benefits at full retire-
working, all or part of his ben-                                                                              ment age rather than age 62.
efits would be penalized. The                                                                                  That is because benefits
2010 Social Security Admin-                                                                                   increase approximately 7%
istration earnings threshold is                                                                               per year between ages 62 and
$14,160 annually. Taking pay-                                                                                 65 and approximately 8%
ments early also would impact                                                                                 between ages 65 and 70.
Mary’s retirement income
benefits and survivor benefits.                                                                                 A “do-over” has become a
                                                                                                              viable financial planning
Their adviser looked at                                                                                       strategy. Information was
different scenarios for                                                                                       included in the Social
Dennis - taking Social                                                                                        Security handbook. A
Security early at age 62,                                                                                     recipient needed only to
at full retirement age of 66,                                                                                 file IRS form 521 and pay
or waiting until age 70. Dennis                                                                               the benefits back in full - no
is in good health and expects to live a long    Do I get the payments listed on                interest, no penalty and no adjustment for
life. Mary’s benefits also were calculated       my Social Security statement?                  inflation. Social Security was designed as a
for various ages. In the end, a “hybrid                                                        lifetime income source.
approach” seemed best. Mary will collect        Not necessarily. The statement is only an
her benefits at 62 and spousal benefits after     estimate and uses average earnings that were   Before making a final decision on benefits,
age 66. Dennis decided to wait and collect      reported to the SSA. Some women have           consult your financial adviser and review
at 66.                                          found that their records were not correct      all options.
                                                because name changes were not reflected.
Workers thinking about taking Social            An employee’s name and Social Secu-
Security early – and beat the rush of           rity number reported on a W-2 must
millions of baby boomers ready to retire –      match the information contained in
consider the following:                         the SSA’s records. Information can be
                                                changed if proof is provided.
If I collect Social Security
benefits at 62, can I adjust the                 Visit www.ssa.gov/employer/ssnv.htm
                                                for more information.
benefits when I reach full
retirement age?                                 Can I change my mind after
No. The reduction is permanent. Benefits         I’ve started collecting my
may increase along with inflation – histori-     benefits?
cally, it’s been estimated at approximately
                                                You can file a “Request for With-
2 percent per year.
                                                drawal of Application” form.

                                                                 page 5
                        Team Spirit: A Tradition of Service




Left to Right: Linette Dobbins, Penny Burgess, Jennifer Currin Gutridge, Joan Lintz, and Judith A. McGee.

Linette Dobbins, CFP®, serves on several         Son, Kallen, age 5, is already an athlete.      Eugene and Bend. Judith serves on OCF’s
advisory committees for Raymond James            He just finished flag football and is in          Professional Advisory Council.
Financial Services, Inc.; Women’s Advisory       beginning wrestling.
                                                                                                 On November 9th, she presented at the
Council, RIA Compliance committee, RJFS
                                                                                                 University Club’s Women’s Dinner, “Politics
compliance and technology committees.            Joan Lintz, MBA, CFP®, joined us in June        and Economics, Strange and Necessary
She is a Director of the Portland Rose           2009 as Associate Financial Planner. She        Bedfellows”. January 6th, Judith will
Festival Foundation and was recently             earned her BA at Boise State University with    speak at the Greater Clark County Rotary
appointed to the Investment Committee.           double majors in History and Spanish. Later     meeting.
This year she was on the Rose Parade,            she received an MBA from U of Portland.
                                                                                                 Judith shares her private life with her best
coronation and auction committees. Linette       As a life-time Girl Scout volunteer, she’s      friend and husband Chuck Defoe and their
and her husband, Steve, enjoy their mini         spent a total of 34 years on local, national    yellow Lab Molly.
farm in Aurora raising Appaloosa horses.         and international boards of the Girls Scouts.
She has four adult children and three            For 19 of those years she had an interna-       * Top 100 Women – The ranking reflects the
grandchildren.                                   tional appointment with The World Associa-      volume of assets overseen by the advisors and
                                                 tion of Girl Guides and Girl Scouts program     their teams, revenues generated for the firms,
Penny Burgess, CFA, Executive Vice                                                               and quality of the advisors’ practices.
                                                 center located in Cuernavaca, Mexico.
President and Lead Portfolio Manager
                                                 She was also President of the Columbia
graduated from Oregon State University
                                                 River Girl Scout Council. Joan is the mother
with a BS in Finance. She’s an avid Beaver                                                                 Useful Websites
                                                 of two adult children. She and husband,
fan – win or lose. After graduation from
                                                 Terry, love to travel, scuba dive, and golf.      (Our clients shared these with us!)
OSU, she joined Columbia Management
                                                 Joan says Terry is a fantastic cook and has
and worked with their founders. In her role                                                        Looking for worldwide vacation
                                                 stocked a wonderful wine cellar.
as portfolio analyst and manager, she trav-                                                        rentals? Family vacation deals? Try this
eled the world (Europe, Asia, Latin America)                                                       site: www.vrbo.com
visiting with the senior management teams        Judith A. McGee, L.H.D., CFP®, CLU,
of leading multi-national companies.             ChFC® was invited to speak in December            Are you into scrap-booking? Paper crafts?
                                                 at the Barron’s Winner’s Circle, Top Women        Check this out: www.paperwishes.com
Penny always said she wanted to marry Rich
                                                 Advisors Summit in Palm Beach, Florida.           Want to help your favorite charity while
– she did. Husband, Rich, and Penny love
hiking and sailing and all outdoor activities.   Her presentation focuses on practice              shopping? Order from top brand on-line
Gardening holds a special interest for her.      management. The Summit brings together            stores and support your favorite cause.
                                                 the best in the business and is a richly          Just start here:www.cafegive.com.
Jennifer Currin Gutridge, CFP®, serves           rewarding experience. This is the 4th year
                                                 Barron’s has recognized Judith as one of
                                                                                                           * * *
on the Boards of Directors of YWCA of
Greater Portland, and the Financial Plan-        the Top 100 Women Financial Advisors*.                Comments Welcome!
ning Association (FPA) of Oregon & SW            Linette Dobbins accepted Top Women                This newsletter is for you, our clients.
Washington.                                      Advisor RJFS award for Judith at the              We’re interested in hearing your
                                                 Raymond James Women’s Symposium in                comments and invite your ideas for
She’s on the Y’s Executive and Finance           St. Petersburg, Florida.                          future editions. What topics interest you?
Committees, and, as FPA’s PR Director, she
                                                 Other presentations for 2010 include “2010,       What kind of information would be
was in charge of Financial Planning week
                                                 The Year of the White Tiger – Dynamic             most beneficial to you? Just let us know.
activities in October, which focused on
college planning for high school students.       Retirement and Estate Planning” for the           Phone: 503.597.2222 Fax: 503.598.8515
Jennifer will coach her 10 year-old daughter,    Oregon Community Foundation (OCF)                 email: news@mcgeenet.com
Cydney’s basketball team this winter.            Philanthropy Forum presented in Portland,

                                                                   page 6
                  Q4 2010 Economic and Market Review:
                                                (Opinions of McGee Financial Strategies, Inc.)
Long-Term trends: The global                        additional indicators that may support a           • Wage pressure is currently low. We
economy is moving at two speeds, with               change in the jobs market. The Monster               suspect inflation will remain benign for
emerging markets growing rapidly and                Employment Index shows online job oppor-             the near term but could impact margins
fighting inflation while most developed               tunities rising, temporary jobs are increasing       by early 2011.
markets grow slowly, coping with fiscal              and the Challenger data shows job cut              • Consumer debt levels decreasing,
deficits and lackluster employment.                  announcements are back towards normal-               savings rate increasing - driving im
                                                    ized levels of 40-50,000/year.                       provement in household liquidity.
Long-term favorable trends in the
emerging world include growing                                                                         • Emerging market consumers are
populations, rising income levels                                                                        spending more.
and larger middle classes with                                                                         • Cash on the sidelines. There is still
desires for “western” lifestyles.                                                                        about $3.5 trillion in money market
                                                                                                         accounts compared to $4 trillion winter
Companies domiciled in emerg-                                                                            of 2008. (Deutsche Bank)
ing markets do take advantage
of this extraordinary growth.                                                                        Concerns
Global companies with brand
identity and entrepreneurial                                                                           • A growing U.S. federal deficit
spirit to compete in those markets                                                                       constrains both tax and spending
may share in future potential                                                                            policies, increasing uncertainty for
prosperity. To us, this is an                                                                            businesses and households. Over the
overriding theme.                                                                                        long term, taxes and interest rates
                                                    Supporting US growth will likely be the              threaten to trend higher.
(International investing involves additional        export sector as the weakened dollar makes         • State budget deficits are an additional
risks such as currency fluctuations, differ-         our goods more competitively priced, and             concern. Austerity measures coming?
ing financial and accounting standards, and          recent government stimulus.
                                                                                                       • U.S. interest rates are historical low
possible political and economic instability.
                                                    Would you believe that international                 presenting challenges for fixed income.
Investing in emerging markets can be riskier
                                                    companies are building new manufacturing             To offset interest rate risk we add global
than investing in well-established foreign
                                                    sites in the US? BMW has announced                   bonds, floating rate funds, convertible
markets. There is no assurance that any of
                                                    a $750M deal to expand their South                   securities and dividend paying equities.
the trends mentioned will continue in the
future. Investing involves risk and investors       Carolina production facility creating 500          • Competitive global devaluing of
may incur a profit or a loss, including the          new jobs. Toyota and Hyundai have                    currencies is underway to keep exports
loss of all principal.)                             announced similar deals. While the US                attractively priced.
                                                    seems to be muddling through a soft                • Some sovereign debt has been down
                                                    economic patch, it appears to be a normal            graded, i.e. Greece, Spain, Italy. Risk
US Economics – Jobs are the Key
                                                    slowdown within an ongoing recovery.                 of defaults?
US economic growth remains tepid for the
                                                    Economic growth is on the upswing (maybe           • Velocity rate of money is low; inflation
foreseeable future as we await improvement
                                                    not as fast as we want): corporate profits are        pressures benign due to weak bank
in the labor market. Since the recession
                                                    rising, consumers are spending at the margin         lending.
“officially” ended in June 2009, the economy
                                                    (think iPhone/iPad) and stocks/bonds/
has only grown 3%, less than half the                                                                Strategy/Themes:
                                                    commodities have been recovering.
post-war average of 6.5%. (Bureau of
Labor Statistics). Consumer spending is                                                              Our investment committee is looking at
                                                    Positives                                        quality, valuation, economic trends, political
soft, increasing just 1.6% last year.
(Deutsche Bank)                                       • Global growth has returned. Emerging         policy (U.S. and world), taxation, and other
                                                        markets seemed to have a sustainable         factors to position or reposition portfolios.
Due to high consumer debt and concerns                  path.                                        Portfolios are structured in a traditional asset
over the housing and investment markets, we           • Interest rates are low. Borrowing            allocation sense as well as a tactical compo-
do not believe the consumer will be a large             costs are accommodative providing            nent for a portion of the portfolio in order
influence in future economic growth until                you qualify.                                 to remain flexible as information unfolds.
job growth improves. Several indicators are                                                          This strategy should help us avoid areas of
pointing towards an improving jobs market             • Better than expected corporate profits.
                                                                                                     the market where we believe risk may be
in the near term.                                     • Merger and Acquisition activity on           higher or to take advantage of areas where
                                                        the rise.                                    we see opportunity.
Wells Capital Management’s James Paulsen
                                                      • Businesses, generally flush with cash,
indicates profit per job has soared by                                                                 The opinions in this newsletter are those of McGee
                                                        are putting money to use. U.S.
35-40% in the last year – its greatest annual                                                         Financial and not those of Raymond James. You should
                                                        investment in equipment and software          seek advice from a tax and/or legal consultant to see how
growth rate in at least 60 years! Corporate
                                                        surged in the second quarter.                 specific issues may affect your individual situation.
profits lead to jobs and we are seeing
                                                                      page 7
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                     Portland, Oregon 97223                                                                                 Permit # 00




Securities offered through
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Member FINRA/SIPC




                                                                     “Let ‘Er Buck!”
                                                                 The McGee Team Saddles Up
                                                                 for the Pendleton Round-Up
                                                  We took a break to enjoy the 100th-year anniversary of the Pendleton Round-Up and had
                                                  an opportunity to celebrate with clients and friends. It’s estimated that around 100,000
                                                  people attended the week-long event this year. For details and more photos, see page 4.


We gathered at Hamley’s Steakhouse for great
food and socializing. L to R Linette Dobbins,
CFP®, Chuck Defoe, Jennifer Gutridge, CFP®,
Judith McGee, CFP®.




                                                                                      The Royal Family
                                                  From l. to r. Annie Hisler Weygandt, Jean Lazinka Barbouletos, Kathryn Lazinka Healy
                                                  Thorne, Hailey Davis, Jennifer Currin Gutridge, Judy Lazinka Currin, Mary Lou Lazinka
l. to r. Amy Nelson, of Hamley’s Steakhouse and   O’Rourke, Janice Healy Davis, Patti Healy Adair. All nine women are past royalty of the
Judith McGee. Amy hosted McGee Financial          Pendleton Round-Up and descendents of the Lazinka family, pioneer ranchers of Eastern
with great food and warm hospitality.             Oregon. The Lazinka story is chronicled in the book: Pendleton Round-Up at 100:
www.thehamleysteakhouse.com                       Oregon’s Legendary Rodeo, by Terry Hill and Michael Bales

				
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