Smith, Moore & Co.

Outperforming most other investments over time, shares of stock give you ownership in the world's best known and emerging companies. Historically, equities offer a higher return on your investment bonds. However, there is no guarantee of earnings or return on your investment. Smith, Moore & Company can help you select the equities that match your needs, comfort level, risk tolerances, and preferences.

Mutual Funds are companies that pool investments for the purpose of buying and managing a portfolio of investment options including stocks, bonds, securities, real estate, precious metals, international securities, and other assets. Mutual Fund Companies offer a variety of funds that range from very conservative to very speculative. Mutual funds allow for affordable, diverse, and professionally managed investing. Helping you choose the right mutual fund for your needs is why we are here!

Bonds are sold by government agencies and private industry to raise capital. The issuer sells them at less than face value, with the intent of making periodic interest payments and returning your initial investment to you at maturity, plus interest, periodically.

Bonds sold by the U.S. Government and used to finance federal projects are rated the highest of all bonds. They provide a fixed rate on a regular basis, making them especially attractive to retirees seeking to supplement pension and IRA savings, while maintaining an active lifestyle.

These securities are issued by government-sponsored and government-owned corporations. Because of their government affiliation, agency bonds are very secure and some interest payments are exempt from state and local income taxes. As a result, agency bonds can sometimes offer investors more favorable bond earnings than would otherwise be possible. The three key government agency bonds include: Ginnie Mae, issued by the Government National Mortgage Association (GNMA); Fannie Mae, issued by the Federal National Mortgage Association (FNMA); and Freddie Mac, issued by the Federal Home Loan Mortgage Corporation (FHLMC).

CDs are savings certificates, generally issued by commercial banks, entitling the owner to receive interest. Interest earned by a CD may be paid monthly, quarterly, annually, or when the CD matures. Interest paid is never added to the amount of the CD because the CD amount is fixed. CDs, which can be issued in any denomination, clearly state the interest rate and maturity date. Because CDs are issued by banks, a CD for less than $250,000 is insured by the government under FDIC. For more information the Federal Deposit Insurance please visit www.fdic.gov

Investors are wise to investigate investment-grade corporate bonds. While yields vary depending on investment risk, interest on these bonds is generally provided semi-annually with return of principal on the maturity date. Smith, Moore & Co. can help you determine the corporate bond that meets your investment parameters.

Clients in higher tax brackets often find investing in municipal bonds allows them to earn interest on a tax-free basis.* Issued when a city, state, or government entity needs to meet school or infrastructure expenses, municipal bonds allow you to invest in your community's future as well as your own. If you live in the same state and municipality which issues the bond, your interest is often exempt from state and local taxes.

* Depending on residency and other conditions, some taxes may apply. See your tax accountant or financial planner for details.

High risk yields high returns. As their name implies, these bonds typically offer very high interest rates. Also known as Junk Bonds, these low-grade bonds may be issued by companies without long track records, or with questionable ability to meet their debt obligations. Talk to your Smith, Moore & Co. representative about your risk/return potential.

Start saving today! Because of the power of compounding, the earlier you start putting money away for retirement, the sooner you'll accumulate your future wealth, and the more you will accumulate. Smith, Moore & Co. planners are experts at helping you select the right tools, many with tax advantages, to help in this process.

Traditional IRAs allow investors to make tax-deductible contributions (depending on income level) which can be invested in stocks, bonds, mutual funds, etc. Earnings grow tax-deferred until the account owner begins to make qualified withdrawals. In order for the account holder to avoid an early 10% withdrawal penalty, distributions cannot begin until age 59 1/2 or must meet one of the IRS-allowable exceptions. All IRA account holders must begin taking IRS Required Minimum Distributions by age 70 1/2. All distributions are taxed as ordinary income.

Roth IRAs allow investors the possibility to earn tax-free distributions on earnings at age 59 1/2. Annual contributions of up to $5000.00 ($6000.00 if over 50 years of age) can be distributed at any time with no tax consequence. These contributions can be used to invest in stocks, bonds, mutual funds, etc. Unlike Traditional IRAs, contributions are not tax-deductible. Roth IRAs have no mandatory withdrawal age. Smith, Moore & Co. can help you determine if you are eligible to take advantage of this retirement savings option.

For our clients who own small, medium, or large businesses, Smith, Moore & Co. can assist with the selection and management of a variety of retirement plans for themselves and their employees. The plans listed here are suitable for start-ups or established businesses such as: self-employed individuals, sole proprietors, independent contractors, 1099 earned income recipients, independent contractors, LLCs, partnerships, or corporations.

• SEP IRA
• Simple IRA
• Money Purchase
• 401(k) Standardized / 401(k) Non-Standardized
• Individual 401(k)
• Pension & Keogh Plans
• 403(b) Plans

By far, the smartest way to save for college today! Section 529 Education plans are offered by individual states and allow savings for accumulation. No gift tax is assessed on the account which is invested into mutual funds, earning competitive and tax-deferred income. Withdrawals are tax-free, assuming the money is withdrawn for qualified higher education expenses. Depending on your state of residence, contributions may be deducted on your state income tax return. Plus, the account is transferable, has no age limit for use, and can be used for graduate school.

Options are contracts that give the owner the right, but not the obligation, to buy or sell a particular asset (the underlying stock) at a fixed price for a specific period of time (until expiration). The contract also obligates the writer to meet the terms of delivery if the contract right is exercised by the owner. Smith, Moore & Co. offers:

• Listed Equity and Index Options
• Unlisted Equity and Index Options
• Cashless Stock Option Exercise
• Stock Option Exercise

Life and disability insurance are the foundation of a secure financial plan. Your best financial planning and wealth accumulation can be devastated by loss of income. Today, life insurance costs less than ever before. Smith, Moore & Co.'s Life and Health Division is committed to finding you the right policy to meet your goals. Ask your financial advisor for details on: Term Life, Whole Life, Variable Life, Survivorship Life, Disability.

We can also help business owners with Group Life, Disability, and Health Insurance.

Earning more on your investment with tax-deferred annuities is a viable option for many investors depending on how you will receive money at retirement and current capital gains tax rates. Ask your Smith, Moore & Co. representative to review money you currently have in CDs, money markets, mutual funds, or other fixed investments to determine if a Single Premium Deferred Annuity is right for you.

Smith, Moore & Co.'s financial planners work with Private Money Managers at your request to locate and develop an investment style that meets your individual needs. Call for more details on this exclusive service.

Smith, Moore & Co. offers a variety of Money Market Funds offered by Deutsche Asset Management. Enhance your cash flow and earn great rates with your choice of the following funds:

• Scudder Premier Money Market Portfolio
• Scudder Premier Gov. & Agency Portfolio
• Scudder Premier Tax Exempt Portfolio
• Scudder Premier Treasury Portfolio

Each fund includes same-day money market sweeps, check writing and check expense coding. Please consult your financial advisor for prospectus or click here for more details.

Clients may view the holdings of their money market portfolio and view other pertentant information about their money market fund by clicking here.

Smith, Moore & Co. helps people realize their retirement dreams every day. We begin by listening to your vision for your future. We analyze, inform, advise, and review your portfolio to implement a plan that's in line with your life goals.

It's no secret that college costs have skyrocketed, far outpacing the rate of inflation. Call on Smith, Moore & Co. expert financial advisors to show you ways to survive the cost of college without sacrificing your home or your future.

Proper planning is never more important than in the investment planning for your heirs. Smith, Moore & Co. can guide you through this process, giving you peace of mind and saving you money now with your expert strategies.

Smith, Moore & Co. is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC). Clients receive SIPC protection of up to $500,000 per account ($400,000 securities and $100,000 for cash claims). Smith, Moore & Co. currently maintains excess SIPC coverage through Lloyds of London. The policy provides an additional $24.5 million per client of coverage for securities above that provided by SIPC, subject to a $25 million aggregate limit. Neither SIPC protection, nor the protection in excess of that provided by Lloyds of London, covers a decline in the value of a customer’s assets due to market loss. For further information about SIPC, please view the organizations website: www.sipc.org or you may call SIPC @ 202-371-8300.

Smith, Moore & Co. can create viable strategies and plans that will help our clients achieve specific financial goals. We offer an array of products through our in-house broker agents and/or a variety of outside resources. We can develop a fee-based account tailored specifically to meet your investing needs. Please consult your financial advisor.

Smith, Moore & Co.'s financial advisors are well equipped to analyze your objectives, risk profile, existing investments, and current market trends before making recommendations to optimize and diversify your investment portfolio. Our goal, for you and the clients whom we have the privilege to serve, is to make the most of your financial future, assuring your investments meet your financial objectives.

Maintaining diversification is key to consistent investment success. Smith, Moore & Co. advisors monitor your portfolio through periodic reviews. Asset allocation preserves your desired ratios of asset classes and market sectors throughout the life of your investment to match your financial goals and risk tolerances.