November 2008 Capital Advantage Newsletter

November 2008

In This Issue:

Lining Up Charitable Donations >>
Giving a Gift of Financial Advice >>
Market Update 11/14/08 >> VESTIA Holiday Blanket Drive >>

Before the Holidays, Get Those Charitable Donations Lined Up

There’s a special sinking feeling as you approach December 31st and realize you’ve done no tax planning whatsoever. That includes big issues like end-of-the-year investment decisions, and the smaller ones – like that stuff you no longer use piling up in the basement.

Charitable giving is an important part of tax planning at year end, so let’s look at the cash and noncash aspects of giving. It makes sense to contact your tax advisor or a Capital Advantage financial advisor to talk about what giving makes sense for you:

You have to itemize: Only individual taxpayers who itemize their deductions on Schedule A can claim a deduction for charitable contributions. This deduction is not available to people who choose the standard deduction, including anyone who files a short form (1040A or 1040EZ).

Learn More >>

Market Update 11/14/2008
John Hayman, Founder/President

Dear Capital Advantage Clients and Colleagues:

Upon receiving this letter, I hope you and your family are in good spirits and doing well. You have probably been bombarded with dramatic news commentaries whenever you turn on your television; listen to your car radio, and even when you check your email. Perhaps you are feeling some despair as the economy continues on with its unprecedented behavior. As we mentioned before, you must keep in mind that it is not a matter of if the economy will recover; it is a matter of when.

What is happening?

The uncertainty around the outcome of the presidential election has been one of the factors weighing on the markets of late. The election of Sen. Barack Obama removes this uncertainty and we will soon begin to see which policies he chooses to implement. However, we are not developing investment strategies based on political outcomes, as they are very unpredictable. We are much more interested in the economic/business climate, how companies react to the prevailing environment, access to credit, earnings, and most importantly, the price of stocks and bonds in the marketplace.

Learn More >>

Market Watch

The Standard and Poors 500 (S&P 500) is an index made up of five hundred different stocks. Each is selected for liquidity, size, and industry. The index is weighted for market capitalization. The S&P 500 is the benchmark of the overall market, and frequently used as the standard of comparison in terms of investment performance.

Giving a Gift of Financial Advice

The holiday season should be about giving, but at the end of the season, most people can’t help but think it’s all about spending and money out the door. What would happen if you and other family members considered a different gift this holiday season – the chance to build your financial awareness with a trained expert?

In today’s difficult economy and an uncertain stock market, investing successfully takes lots of planning and prudent investment decisions. However, it costs money. But its potential returns are manifold – a chance to get a handle on current spending, debt and investment options and a long-term opportunity to learn everything possible about your financial life. It doesn’t matter if you are a single working individual or a family with kids still at home – the right financial advisor can be a long-term partner in re-educating everyone in a household about money and the right ways to handle it.

For many people financial planning is a reaction to an emergency, such as a divorce, the death of a spouse or a sudden windfall. Making the decision to work with a financial advisor as an ongoing part of your life, you have the chance to fully review all your spending and investing decisions and maybe allow each of your family members to do individualize planning that will set them on a good course for life. Here are some questions you should ask your prospective financial advisor...

Learn More >>

VESTIA Holiday Blanket Drive -Aimee Schwartze

Everyone is suffering from the recession in one way or another; account values are down, spending has decreased to the point where major retail stores are closing, and the market volatility can feel overwhelming. It is during these trying times that it is important for us to be thankful for what we have and think of those that are less fortunate. This is why Capital Advantage, Inc. has decided for the third year in a row to join forces with the Contra Costa Volunteer and Emergency Services Team (VESTIA). With your generous help and support last year, VESTIA was able to provide 407 families (1115 children!) with gifts and clothing, as well as provide holiday dinners to over 600 families.

Learn More >>

Did You Know?

OUR WEBSITE WAS BUILT FOR OUR CLIENTS

Did you know by visiting the website of Capital Advantage, Inc. - www.capitaladvantage.com - our clients can access all current and archived quarterly letters, quarterly reports, monthly newsletters, current investment selections, account service/request forms, professional resources, as well as many other valuable tools and information?

Note: A username and password are required to access the private client section of our web site. If you do not have a username and password, please contact our office.

Contact Us
	John Hayman, CFP Founder and President Email John
	Donna Zinman, MBA Vice President Sr. Financial Advisor Email Donna
	Gary Clarke Vice President Sr. Financial Advisor Email Gary
	Rick McNamara, CFMC Director of Investments Email Rick
	Dawnalizabeth Henke, MSFA Chief Compliance Officer Email Dawnalizabeth
	Aimee Schwartze Director of Client Service Email Aimee
	Catherine Norris Client Service Manager Email Catherine
	Amy Montano Senior Administrator Email Amy (AJ)

	Capital Advantage, Inc. 3708 Mt. Diablo Blvd., Suite 200 Lafayette, California 94549 (925) 299-1500 www.capitaladvantage.com
	SUBSCRIBE	TELL A FRIEND