Our firm does not invest client funds in "proprietary" products, meaning that we do not directly manage the mutual funds or private money managers that we recommend. This gives us the ability to utilize all but a very slim segment of the thousands of mutual funds and money managers in existence. This is a tremendous advantage when attempting to achieve our clients` goals and objectives. Additionally, it allows us to minimize any potential conflicts of interest when making recommendations.

We utilize primarily no-load mutual funds, private money managers, individual stocks and bonds. Our research database currently contains over 10,000 total money managers. We actively monitor the performance of just under one hundred, but review data on several thousand on a quarterly basis. Investment analysis is conducted by the members of our Investment Committee with new ideas or altered recommendations and opinions discussed at the Committee sessions. Company policy regarding individual managers or stock issues are established in this meeting. The members of this committee include James K. Wilson, David Holloway, Michelle Warner, Sarah Miller, Molly Chase and Rose Martin. Our Committee utilizes fundamental investment analysis in determining recommendations. Our decisions are long-term in nature and are not contingent upon day-to-day market fluctuations. Performance is measured relative to comparable peers and indices in the same segment of the market. We do not attempt to time short market movements, but instead opt for long-term consistent performance.

Each of our client portfolios is customized. Sell decisions tend to be uniform throughout the client base; however, the reallocation of holdings process is unique to the client and their Investment Objective or Investment Policy Statement. Most no-load fund, stock and bond investments are made through Charles Schwab Institutional trading. Charles Schwab is the largest discount brokerage firm in the country. We receive no compensation from Charles Schwab, although they afford our practice certain efficiencies such as the use of Schwab link software. All brokerage accounts are insured by SIPC, the Securities Investor Protection Corporation. SIPC is a quasi-governmental organization similar in structure to the FDIC, associated with banks. Each account registration is considered a separate account for insurance purposes. In addition, through Travelers Casualty and Surety Company of America, Schwab provides excess protection up to the customer's total net equity for each separate account (Note: This protection does not cover you for fluctuations in the market value of securities). We view our investment management function as making sure that our clients have their accounts allocated across many asset classes and with specialists in each of those areas. This distinguishes us from other advisors. Most select each of the individual stocks and bonds in client accounts, resulting in a portfolio reflective of their area of expertise. Our client accounts have multiple managers with expertise in their respective niches. As a consequence, our portfolios have a much broader overall market allocation.