May, June, July & August 2014
Dear Clients & Prospective Clients:
2014 will go down as one of the harshest
winters in Chicago's history, as well as most
of the northern part of the US. The
unusually cold weather has had an effect on
the economy as the 1st quarter GDP is
likely to be +1% versus +2.6% in 4Q13 1.
The MPW Group at Morgan Stanley
Janet Yellen has taken over for Ben
F I N A N C I A L C O A C H I N G
Bernanke at the Fed & has begun to reduce
Left to right: Lance, Malcolm, Scott & Ryan
the bond buying program, but has pledged
to leave interest rates low until the economy shows signs of
strengthening.
THE MPW GROUP
The stock market was relatively flat in the 1st quarter but that is
Scott K. Magnesen
Managing Director , Wealth Management
not surprising considering the strong finish of 2013. I still believe
Financial Advisor
2014 will be a good year for equities & unlike last year, global
(630) 573-9694
equities are likely to outperform US equities as Europe is showing
Malcolm W. Proudfoot, CFP ®
Executive Director
signs of an economic recovery. We continue to favor quality highWealth Advisor
dividend paying stocks that are likely to raise their dividends each
(630) 573-9666
year. We have been adding to emerging markets as we expect China
Lance A. Walker
First Vice President
specifically to do better in 2014. We are keeping a very small
Financial Advisor
(630) 573-9754
percentage in commodities still, as inflation seems to be constrained
Ryan Magnesen
for now. Within fixed-income, we continue to favor corporate bonds
Associate Vice President
over CDs in retirement accounts as well as municipal bonds over
Financial Advisor
(630) 573-9693
Treasuries in taxable accounts.
Joni Elliott
We thank you for all the many friends & family members you have
Senior Client Service Associate
(630) 573-9664
referred to us this past year. Thanks to you, we were once again
Ginny Campbell
honored by being named one of Financial Times "Top 400 Financial
Portfolio Associate
(630) 573-9665
Advisors" (nationally) * . We look forward to a good 2014 & will
Katie O'Malley
continue to work hard to give you the financial expertise & service
Senior Client Service Associate
(630) 573-9678
you deserve!
Patricia Zanghi
Senior Client Service Associate
(630) 573-9792
Sincerely,
Scott & The MPW Group
1
Wilson, Michael. "Seventh Inning Stretch." Global Investment Committee/Commentary (2014): 1-20. Apr. 2014.
Morgan Stanley Smith Barney LLC. Member SPIC.
1(630)573-9700… 1(800)755-9755
FAX (630)572-9030
The Odds Favor the Long-Term Investor
Distribution of Returns of the S&P500 Index 1926-2013
For more than eight decades, the
stock market has produced positive
returns approximately 70% of the
time. Of the 88 years shown here,
64 of them (or 72.7%) were "up"
years, while only 24 (or 27.3%) of
them were "down" years.
Up Years: 64 (72.7%)
Down Years: 24 (27.3%)
1931
2008
1937
2002
1974
1930
2001
1973
1966
1957
1941
-40% to
-50%
-30% to
-40%
-20% to
-30%
-10% to
-20%
2000
1990
1981
1977
1969
1962
1953
1946
1940
1939
1934
1932
1929
2011
2007
2005
1994
1992
1987
1984
1978
1970
1960
1956
1948
1947
0% to
-10%
0% to
+10%
2012
2010
2006
2004
1993
1988
1986
1979
1972
1971
1968
1965
1964
1959
1952
1949
1944
1926
2009
2003
1999
1998
1996
1983
1982
1976
1967
1963
1961
1951
1943
1942
2013
1997
1995
1991
1989
1985
1980
1975
1955
1950
1945
1938
1936
1927
1958
1935
1928
1954
1933
+10% to +20% to +30% to +40% to +50% to
+20%
+30%
+40%
+50%
+60%
Performance Ranges (10% Increments)
Source: Consulting Group, Polaris
For illustrative purposes only and not intended to represent the performance of any specific investment. Past performance is not a guarantee of future results and
there is no reliable way in which to predict future performance during any particular month, quarter or future time period.
How Much Will You Need to Save and How Long Will It Last?
A key factor you'll need to
consider is how much you
can withdraw from your
nest egg each year without
running out of money. This
table can give you a rough
idea. Calculations assume
a 5% annual rate of return.
The table shows your
withdrawal in the first year,
which increases annually to
account for 3% inflation.
Page 2
Shows estimates of how much you may be able to withdraw annually from your retirement account, based on
the account value and number of years expected.
Source: ChartSource®, S&P Capital IQ Financial Communications. This example does not take the effects of taxes into
account. This is a hypothetical illustration and is not intended to illustrate past or future performance. Your results will
vary. Copyright © 2012, S&P Capital IQ Financial Communications. All rights reserved. Not responsible for any errors
or omissions.
The Morgan Stanley Mobile App is now available
I am excited to let you know that the new Morgan Stanley Mobile App for iPhone® is now available for
download from the App StoreSM. It's a great new tool that will allow us to work more closely together, while
providing you with the freedom to securely manage your account from your mobile device – on your own terms.
The new app allows you to access your Morgan Stanley account information including balances, holdings, and
activity. A full suite of cash management features are available, including bill pay, funds transfer, and the ability
to deposit checks drawn on a US bank1 using our cutting-edge imaging technology.
If you have a Morgan Stanley Online login you have immediate access to the app. If you're not a Morgan Stanley
Online customer you'll first need to register. Simply visit morganstanley.com/online, and click "Register online
to access your account" to create your login credentials. It's quick and easy, and takes just a few steps.
You're now ready to take your Morgan Stanley relationship to the next level. To learn more about the app's
features and benefits, watch an informational video and access the App StoreSM directly to download the app,
visit morganstanley.com/app.
We both know that a device can't replace one-on-one service, so remember that the app has access for you to call
me directly. A conversation is just a tap away.
I hope you find our new mobile app to be convenient and useful. As always, please don't hesitate to contact me if
you want to learn more about the app or have any questions about your account.
1 Subject to certain terms and conditions.
Subject to cell phone connectivity. Standard messaging and data rates from your provider may apply.
Apple, the Apple logo and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.
Morgan Stanley Smith Barney LLC ("MSSB") is a registered Broker/Dealer, not a bank. Where appropriate, MSSB has entered into arrangements with
banks and other third parties to assist in offering certain banking related products and services. Banking and credit products and services are provided by
Morgan Stanley Private Bank, National Association or Morgan Stanley Bank, N.A., members FDIC (the "Banks"). The Banks and MSSB are affiliates.
Investment products and services are offered through MSSB. Unless specifically disclosed in writing, investments and services offered through Morgan
Stanley Smith Barney LLC are not insured by the FDIC, are not deposits or other obligations of, or guaranteed by, the Banks and involve investment risks,
including possible loss of principal amount invested.
CRC887909 4/14
© 2014 Morgan Stanley Smith Barney LLC. Member SIPC.
Page 3
MARKET RECAP
MPW NEWS & UPDATES:
1) Scott was blessed with his 4th
grandchild, Brody Michael Magnesen,
on January 31st, 2014! Son of Michael
(Scott's oldest) & Sheena, their second
child, first boy!!
2) Lance celebrated his 15th year with
Morgan Stanley!
3) Ryan celebrated his 5th year with
Morgan Stanley!
4) Scott & the MPW Group were honored
by being named to Financial Times
"Top 400 Financial Advisors" list*!
March 31, 2014
Index Levels
Dow Jones 30
S&P 500
NASDAQ
Russell 2000
Bond Rates
2-Yr US Treasury
10-Yr US Treasury
10-Yr US Muni
Consumer Rates
30-Yr Fixed Mort
Prime Rate
Commodities
Gold
Oil
Friday
Close
3/28/14
Year
End
12/31/13
Year
Ago
3/28/13
3 Years
Ago
3/28/11
16,323.06
1,857.62
4,155.76
1,151.81
16,576.66
1,848.36
4,160.77
1,163.64
14,578.54
1,569.19
3,267.52
951.54
12,197.88
1,310.19
2,730.68
821.77
0.45
2.73
2.54
0.38
3.04
2.62
0.25
1.87
2.56
0.81
3.47
3.01
4.56
3.25
4.72
3.25
3.79
3.25
4.92
3.25
1,295
101.67
1,205
98.42
1,598
97.23
1,417
103.98
Source: "Weekly Market Recap." Market Insights . J.P. Morgan Asset Management, 3/31/2014.
Prospective Clients-- Days/Evenings Available
If you currently are not a Morgan Stanley client, this may be a perfect time to get your financial
resources in order. Why not call for an appointment today at absolutely no obligation or cost to
you? The process is easy:
Step I:
Step II:
Step III:
Step IV:
Schedule a one-hour appointment (days or limited evenings available)
Receive professional feedback on your current investments.
Receive a written proposal (usually 3-5 days after appointment)
Contact us only if you wish to proceed or have further questions.
DISCLAIMERS: Dow Jones Industrial Average is a price-weighted index of the 30 “blue-chip” stocks and serves as a measure of the US market, coving such diverse industries as financial services, technology, retail,
entertainment and consumer goods. An investment cannot be made directly in a market index. The Federal Reserve Trade-Weighted Broad Dollar Index (commonly known as the Broad Index) is a weighted average of
the foreign exchange values of the U.S. dollar against the currencies of major U.S. trading partners. Bonds are subject to interest rate risk. When interest rates rise, bond prices fall; generally the longer the bond’s
maturity, the more sensitive to this risk. Bonds may also be subject to call risk, which is the risk that the issuer will redeem the debt at its option, fully or partially, before the scheduled maturity date. The market value
of debt instruments may fluctuate, and proceeds from sales prior to maturity may be more or less than the amount originally invested or the maturity value due to changes in market conditions or changes in the credit
quality of the issuer. This is the risk that the issuer might be unable to make interest payments and/or principal payments on a timely basis.Bonds are subject to the credit risk of the issuer. Bonds are also subject to
reinvestment risk, which is the risk that principal and/or interest payments from a given investment may be reinvested at a lower interest rate. Bonds rated below investment grade may have speculative characteristics
and present significant risks beyond those of other securities, including greater credit risk and price volatility in the secondary market. Investors should be careful to consider these risks alongside their individual
circumstances, objectives and risk tolerance before investing in high-yield bonds. High yield bonds should comprise only a limited portion of a balanced portfolio. Equity securities may fluctuate in response to news on
companies, industries, market conditions and general economic environment. Investing in foreign emerging markets entails greater risks than those normally associated with domestic markets, such as political,
currency, economic and market risks. REITs investing risks are similar to those associated with direct investments in real estate: property value fluctuations, lack of liquidity, limited diversification and sensitivity to
economic factors such as interest rate changes and market recessions. Investing in commodities entails significant risks. Commodity prices may be affected by a variety of factors at any time, including but not limited
to, (i) changes in supply and demand relationships, (ii) governmental programs and policies, (iii) national and international political and economic events, war and terrorist events, (iv) changes in interest and exchange
rates, (v) trading activities in commodities and related contracts, (vi) pestilence, technological change and weather, and (vii) the price volatility of a commodity. In addition, the commodities markets are subject to
temporary distortions or other disruptions due to various factors, including lack of liquidity, participation of speculators and government intervention. International investing may not be suitable for every investor and is
subject to additional risks, including currency fluctuations, political factors, withholding, lack of liquidity, the absence of adequate financial information, and exchange control restrictions impacting foreign issuers.
These risks may be magnified in emerging markets. This material does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circumstances and objectives of
persons who receive it. The strategies and/or investments discussed in this material may not be suitable for all investors. Morgan Stanley Smith Barney recommends that investors independently evaluate particular
investments and strategies, and encourages investors to seek the advice of a Financial Advisor. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and
objectives. The views expressed herein are those of the author and do not necessarily reflect the views of Morgan Stanley Smith Barney or its affiliates. All opinions are subject to change without notice. Neither the
information provided nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Past performance is no guarantee of future results. The information and data in this report were
obtained from sources deemed reliable. Their accuracy and completeness is not guaranteed and the giving of the same is not deemed a solicitation on our part with respect to the purchase or sale of any securities or
commodities. S&P500 is an unmanaged, market value-weighted index of 500 stocks generally representative of the broad stock market. An investment cannot be made directly in a market index. Past performance is
not a guarantee of future results. Source: Barron’s “Top 100 Financial Advisors,” April 16, 2012. Barron’s is a registered trademark of Dow Jones & Company, LP. All rights reserved. Barron’s “Top 100 Financial
Advisors” bases its ratings on qualitative criteria: professionals with a minimum of 7 years financial services experience, acceptable compliance records, client retention reports, customer satisfaction, and more.
Financial Advisors are quantitatively rated based on varying types of revenues and assets advised by the financial professional, with weightings associated for each. Because individual client portfolio performance varies
and is typically unaudited, the rating focuses on customer satisfaction and quality of advice. For more information on rating methodology, go to http://online.barrons.com/report/top-financial-advisors or contact
Barron’s Associate Editor, Matt Barthel, at [email protected]. The rating may not be representative of any one client’s experience because it reflects a sample of all of the experiences of the Financial
Advisor’s clients. The rating is not indicative of the Financial Advisor’s future performance. Neither Morgan Stanley Smith Barney nor any of their Financial Advisors pay a fee to Barron’s in exchange for the rating.
*Source: The Financial Times "Top 400 Financial Advisors" is an independent listing produced by the Financial Times (March 2014). The FT 400 is based in large part on data gathered from and verified by brokerdealer home offices, and, as identified by the FT, reflected each advisor's performance in six primary areas, including assets under management, asset growth, compliance record, experience, credentials and
accessibility. The rating may not be representative of any one client's experience and is not indicative of the Financial Advisor's future performance. Neither Morgan Stanley Smith Barney LLC nor its Financial
Advisors or Private Wealth Advisors pays a fee to The Financial Times in exchange for the rating.
Investments and services are offered through Morgan Stanley Smith Barney LLC. Member SPIC.
Morgan Stanley, 2211 York Road Ste. 100, Oak Brook, IL 60523 1(630) 573-9700… 1(800)755-9755 … FAX (630)572-9030
Page 4
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