Dear Friends and Family,

On September 13th, 2010, Warren Buffett, Jeff Immelt, and Steve Ballmer all expressed positive outlooks on the economy. Despite negative headlines, there are many reasons to remain hopeful.

Some positive indicators:

• August layoffs were 35,000—the lowest in 10 years.
• Private sector hiring is increasing, especially outside of health care, which had low layoffs to begin with.

Buffett said: “I’m a huge bull on this country…we won’t have a double dip recession. I see our businesses coming back almost across the board.”

Health Care Reform Update:

Starting January 1, 2011, OTC medicines (e.g., Advil, antacids) require a prescription to be reimbursable under FSAs or HRAs. Non-medicine items (band-aids, saline) are still eligible without a prescription.

Year-End Reminders:

• Discuss gain/loss adjustments before December 31.
• Ask us about IRS cost basis rules for ‘covered’ securities.
• If you received RMD forms from us, please complete and return them.

Sincerely,

Katz Family Financial