Editors note:

The following is a recent letter that I sent out to all my clients. I decided to print the letter again since it is still very timely. We live in extraordinary times today and the wisdom and insight that this letter provides continues to be valuable and is worth repeating.

Dear Valued Client,

I know how frustrating it is to be a participant in this market decline. As you know, it has been brutal out there! I want you to know that I am always here to talk and be of assistance. It is with this in mind that I wanted to reassure you that I will continue to keep in touch with you especially during these difficult market conditions.

It is during times like these that I am reminded of an old Chi-nese fable and the insight it can offer, and I would like to share it with you.

A farmer who lived near the northern frontier of China found that his rare white horse was missing. It was said that the horse was seen running out-side the border of the country. The neighbors came to comfort him on the loss, but the farmer was devastated. One of his neighbors recommended to the farmer to visit the village sage about the problem. Perhaps the wise man could give the farmer some insight regarding this horrible loss.

So the farmer went to see the wise man and told him his sad

story. The old sage looked up and said simply, “It could be good, it could be bad.” “ Go now and be sad no longer.” The farmer, con-fused went back to his home to think about what the wise master had told him.

Some months later his horse returned, bringing a splendid

T E R R Y H I L L & A S S O C I A T E S Semi-annual Publication

Volume 2, Issue 1

Inside this issue:

Extraordinary Times cont’d. 

2 

Just for Fun   2 

Did You Know  3 

Ball Game  3 

Value Added Service  

4  

Breaking News About Mandatory Distributions! 

It is important to be aware of the re-cent legislative changes that were passed by both houses of Congress and signed by the President this past year. This legislation, entitled The Worker, Retiree and Employer Re-covery Act of 2008 (The Act), is designed to help alleviate the finan-cial burden facing investors who have seen their retirement savings shrink dramatically due to this year’s eco-nomic downturn.

The Act will provide relief during 2009 to two types of investors:

● Over age 70 ½ who hold retirement assets in 401(k)s, 403(b)s, 457(b)s and traditional IRA accounts.

● Holders of inherited as-sets still registered in the name of the

decedent in 401(k)s, 403(b)s, 457(b)s and traditional IRA accounts.

It does so by suspending required minimum distributions (RMD), the mandatory withdrawals previously required of all defined contribution plan participants over age 70 ½.

The suspension of RMDs in 2009 allows you to forego or reduce asset liquidations that otherwise would have been required to gen-erate your cash distributions. As a result of the RMD suspension, you need not liquidate assets at current price levels, and may continue to keep your holdings invested on a tax-deferred basis with no penalty. If you choose to do so, you retain the opportunity to await stronger market conditions for future liquida-

tions. You are also free to con-tinue to receive distributions according to your current sched-ule if you do not wish to make any adjustments in 2009 based on The Act.

Please note, however, that the new tax law applies only to 2009. It does not provide a waiver of your 2008 RMDs or any 2008 distribution that has been delayed until April 1, 2009. I look forward to sharing ongoing updates regarding this important legislation with you as they be-come available.

TERRY HILL & ASSOCIATES

PHONE: 972.966.2020 FAX: 972.317.7637 TERRENCE.HILL@LPL.COM

WWW.TERRYLHILL.COM

SECURITIES OFFERED THROUGH LPL FINANCIAL, MEMBER FINRA/SIPC

Please feel free to share the content of this news‐letter with anyone whom you feel it might help. 

News from the Hill We Live in Extraordinary Times 

stallion. The farmer was very happy about his good fortune. He thought, the wise man was right. I must go and tell him of my good luck. He told the sage the story. The Master said, “It could be good it could be bad.” The farmer was surprised by the wise man’s comments. He was expecting the old man to share his excitement.

Well, it seemed that the farmer’s life was made richer by a fine new horse that his son loved to ride. One day while his son was riding the horse he fell off and broke his leg. When this happened the farmer remembered the old sages words; it could be good, it could be bad.

Several weeks later many of the youth in the village were recruited to fight in a war and most of them died. The son of the farmer was absolved from the obligation because of his disability. The farmer once again visited the wise man for advice. The sage said, “Truly, blessing turns to disaster, and

disaster to blessing: the changes have no end, nor can the mystery be fathomed.”

This ancient fable teaches us to take life in stride because things aren’t really as bad (or good) as they may initially seem. The wise man’s approach certainly appears wise advice and very timely as well when it comes to investing and the current state of the economy. We see everyday the media focusing on the negative and ignor-ing the positive con-cerning the markets and encour-aging us to only think short term. I think that this idea of opportu-nity in the mist of chaos was what J.P. Morgan had in mind when he said, “I buy stocks when there is blood in the streets.” Lets see…. Buy low sell high that sounds familiar. So what should one do in these difficult times? I still believe that having a good game plan, a well-diversified portfolio and invest-ing for the long term is the best

way to approach volatile mar-kets.

So when someone asks us how the economy is doing, maybe we should respond like the wise man, it could be good, it could be bad.

PS: Your patience

and understand-

ing during this

market decline is

sincerely appreci-

ated. My goal is to

keep you updated

on the economy

and our LPL Financial ana-

lyst’s latest research while

monitoring your accounts

closely. Please don’t hesitate

to call with any questions,

comments or concerns. We

stand ready to be of service.

Sincerely,

Terry Hill

Extraordinary Times Continued from page 1 

News from the Hill Volume 2, Issue 1

Page 2

——————

The toothbrush as we know it today 

was not invented until 1938. Since 

around 3000BC, people used any‐

thing from a ‘chew stick’‐ a thin twig 

with a frayed end, to feathers, 

bones , and porcupine quills to clean 

their teeth.  

——————

“Finish each day and be done with 

it. You have done what you could; 

some blunders and absurdities have 

crept in;  forget them as soon as you 

can. Tomorrow is a new day; you 

shall begin it serenely and with too 

a high spirit to be encumbered with 

your old nonsense.” – Ralph Waldo 

Emerson 

better if we change; what I can say 

is they must change if they are to 

get better.”  ‐ G.C. Lichtenberg 

——————

Texas is the only state that permits 

residents to cast absentee ballots 

from space.

——————

“Twenty years from now you will be 

more disappointed by the things 

that you didn’t do than by the ones 

you did do. So throw off the bow‐

lines. Sail away from the safe har‐

bor. Catch the trade winds in your 

sails. Explore. Dream. Discover.” ‐ 

Mark Twain 

——————

President Kennedy was the fastest 

random speaker in the world with 

upwards of 350 words per minute. 

It is a common mistake to say that the 

Great Wall of China is visible from 

outer space. Truthfully, it is too thin to 

be noticed from such a great distance. 

There are only two man made struc‐

tures visible from space; they are the 

Pyramids of Giza and the Hoover Dam. 

——————

“All of our dreams can come true if we 

have the courage to pursue them.” ‐ 

Walt Disney 

——————

If snow makes a deep crunching sound 

when it’s walked upon, it means the 

temperature of the snow is about 32 

degrees Fahrenheit. If the sound is 

higher pitched, then the snow is most 

likely colder, around 21 degrees Fahr‐

enheit.  

——————

“I cannot say whether things will get 

Just for Fun! 

“We see everyday the

media focusing on the

negative and ignoring

the positive

concerning the

markets and

encouraging us to

only think short term.”

News from the Hill Volume 2, Issue 1

Page 3 Did You Know... 

The year is 1906, one hundred and two years ago. Here are some sta‐tistics from the United States in 1906. 

The average life expectancy in 

the U.S. was 47 years. 

Only 14 percent of the homes in 

the U.S. had a bathtub. 

Only 8 percent of the homes 

had a telephone 

A three‐minute call from Denver 

to New York City cost eleven dollars. 

There were only 8,000 cars in 

the U.S., and only 144 miles of paved roads. 

The maximum speed limit in 

most cities was 10 mph. 

Alabama, Mississippi, Iowa, and 

Tennessee were each more heavily populated than California.  With a mere 1.4 million people, California was only the 21st most populous state in the Union. 

The tallest structure in the 

world was the Eiffel Tower. 

The average wage in the U.S. was 

22 cents per hour. 

The average U.S. worker made 

between $200 and $400 per year . 

A competent accountant could 

expect to earn $2000 per year, a dentist $2,500 per year, a veterinarian be‐tween $1,500 and $4,000 per year, and a mechanical engineer about $5,000 per year. 

More than 95 percent of all births 

in the U.S. took place at home. 

Ninety percent of all U.S. doctors 

had no college education!  Instead, they attended so‐called medical schools, many of which were con‐demned in the press AND the govern‐ment as “substandard.” 

Sugar cost four cents a pound. 

Eggs were fourteen cents a dozen. 

Coffee was fifteen cents a pound. 

Most women only washed their 

hair once a month, and used borax or egg yolks for shampoo. 

Canada passed a law that prohibited 

poor people from entering into their coun‐try for any reason. 

Five leading causes of death in the U.S. 

were: 1. Pneumonia and influenza 2. Tuber‐culosis 3. Diarrhea 4. Heart disease 5. Stroke 

The American flag had 45 stars. 

Arizona, Oklahoma, New Mexico, 

Hawaii, and Alaska hadn’t been admitted to the Union yet.. 

The population of Las Vegas, Nevada, 

was only 30! 

Crossword puzzles, canned beer, and 

ice tea hadn’t been invented yet. There was no Mother’s Day or Father’s Day. 

Two out of every 10 U.S. adults could‐

n’t read or write.  Only 6 percent of all Americans had graduated from high school. 

Try to imagine what it may be like in another 100 years. 

Ball Game ‘08!

This year we treated our clients to the Frisco Roughriders game. For all who came, it turned out to be a really great time spent with friends and family.

“This is really great fun.” “I can see clearly now!”

“Hey guys, what’s the score?”

The rally hat.

Don’t miss out on the

fun! There’s more to come!

What’s Happening 

harmful to your financial situation. With this in mind, it is a good idea to take advantage of our insurance service in order to properly assess whether or not your insurance will work for you in case something does come up in the future.

Since time brings changes such as changes in residency, retirement, col-lege for your children or grandchil-dren, unexpected events and others, your financial needs and strategies may also change along with every-thing else. Accordingly, a value added service that we provide is a complete, free, evaluation on all of your insur-ance products. This includes every-thing from life, disability, and other insurance products. This service may find lower cost ways to give you and your family the same coverage, or give you increased coverage for the same cost you are paying now. Medi-cal emergencies and unexpected events can be costly and potentially

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The opinions voiced in this newsletter are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult with us—your financial advisor—prior to investing.

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