4th Quarter 2011
December 31. 2011

Happy New Year! As we begin 2012, we wanted to take a few minutes to thank you for your patience and support during a volatile time in the markets. It has been challenging for many people to keep focused on a long term plan with all of the media bombardment and negative press about our economy, the world and life in general. The constant in all of the chaos is that long term investors are rewarded for their patience during times like these. Warren Buffet once said “The stock market still remains the most efficient mechanism of wealth transfer from the impatient to the patient” and by looking at last year it continues to remain true today.

For the year, the stock market was basically flat. We saw a move up during the first 5 months followed by a correction in the summer that was triggered by European debt, US downgrade and fear of a “double dip” recession in the US. It was an eerily similar story to that of the summer of 2010. The biggest difference being that the numbers have continued to improve in our economy. The leading economic indicators, jobless claims, manufacturing, consumer sentiment have all shown improvements during the fall and the market has recovered back to where it began the year. Yes the improvements have not been stellar but at least they are moving in the right direction. We still have problems in our housing market, overall unemployment and government spending, all which will take time to repair and correct, but we feel it will eventually happen.

Heritage has also been going through some updates as a company in order to improve our level of service and communication with you. Here are a few of the changes:

• New Quarterly Statements – We hope you will take some time to review the new look and give us feedback.

• New Website – We are in the process of updating our website and should have the new site up and running in the 1st quarter. Once fully implemented the blog should be easier to access.

• New Client Care Specialist – Leah Portnoy joined us in December as our Client Care Specialist. Her primary role is scheduling meetings and taking care of YOU!

• Electronic Statements – We now have the ability now to send all statements (Fidelity/Heritage) to you electronically. If that is something you are interested in please contact us.

• Expanded Woodlands Office – We have increased our office presence in The Woodlands to accommodate more meetings on Tuesday and Thursday.

• We look forward to seeing you at your next review meeting and wish you the best in 2012!

Dan P. Michalk, CFP®, ChFC