Volume 2, Issue 3
Table of Contents

Cover Story:
Taking Rockland’s Pulse
When it comes to healthcare, the prognosis is good for Rockland County

Feature Story:
Trends In Senior Living
From home health care to hospice care, assisted living to nursing homes, find out what's right for you

RBD Round-Up:
RBD's First Annual Small Business Awards
We’re looking for you! Find out more about our new awards program—and how to nominate a small business

DEPARTMENTS:

Economic Round-Up
• The Smart Investor
How should you manage your retirement?

Retail Round-Up
• The Most Wonderful Time of the Year
Retailers expect respectable sales as shoppers head into the holidays

Business Round-Up
• Things You Should Know
The County hires a new health commissioner, Wyeth celebrates the century mark
• Marketing By Design
The fine art of advertising
• Rockland Newsmakers

Ask The Expert
• Limited Liability and Company Retirement Plans

Dedicated Section:
Rockland Business Association:

The President’s Desk
It’s Been A Very Good Year...and It Ain’t Over Yet

Marking a Milestone
The Old 76 House in Tappan becomes the RBA’s 1,000th member.

RBA Happenings
• Committee and Council Info
• Calendar of Events
• New Members

Publishing Information
Rockland Business Digest, LLC

Co-Publishers:
Ken Mahoney & Steven Powell

For complete publishing information, please click here.

Employer-sponsored retirement plans are more valuable than ever. The money in them grows tax deferred until it is withdrawn at retirement. Distributions from a tax-deferred retirement plan, such as a 401(k) plan, are taxed as ordinary income and may be subject to an additional 10-percent federal tax penalty if withdrawn prior to age 59 1/2. And contributions to a 401(k) plan actually reduce your taxable income.

But figuring out how to manage the assets in your retirement plan can be confusing, particularly in times of financial uncertainty.

Conventional wisdom says if you have several years until retirement, you should put the majority of your holdings in stocks. Stocks have historically outperformed other investments over the long term. That has made stocks attractive for staying ahead of inflation. Of course, past performance does not guarantee future results.

The stock market has the potential to be extremely volatile. Is it a safe place for your retirement money? Or should you shift more into a money market fund offering a stable but lower return?
And will the instability in the markets affect the investments that the sponsoring insurance company uses to fund its guaranteed interest contract?

If you’re participating in an employer-sponsored retirement plan, you probably have the option of shifting the money in your plan from one fund to another. You can reallocate your retirement savings to reflect the changes you see in the marketplace. Here are a few guidelines to help you make this important decision.

Consider Keeping a Portion in Stocks
In spite of its volatility, the stock market may still be an appropriate place for your investment dollars — particularly over the long term. And retirement planning is a long-term proposition.
Since most retirement plans are funded by automatic payroll deductions, they achieve a concept known as dollar cost averaging. Dollar cost averaging can take some of the sting out of a descending market.

Dollar cost averaging does not ensure a profit or prevent a loss. Such plans involve continuous investments in securities regardless of the fluctuating prices of such securities. You should consider your financial ability to continue making purchases through periods of low price levels. Dollar cost averaging can be an effective way for investors to accumulate shares to help meet long-term goals.

Diversify
Diversification is a basic principle of investing. Spreading your holdings among several different investments (stocks, bonds, etc.) may lessen your potential loss in any one investment. Do the same for the assets in your retirement plan.

Keep in mind, however, that diversification does not guarantee against loss; it is a method used to manage risk.

Find Out About the Guaranteed Interest Contract
A guaranteed interest contract offers a set rate of return for a specific period of time, and it is typically backed by an insurance company. Generally, these contracts are very safe, but they still depend on the security of the company that issues them.

Periodically Review Your Plan’s Performance
You are likely to have the chance to shift assets from one fund to another. Use these opportunities to review your plan’s performance. The markets change. You may want to adjust your investments based on your particular situation. RBD

Ken Mahoney is the president of Mahoney Asset Management. He can be reached by phone at 845-371-0101, or visit his web site at : www.thesmartinvestors.com.

Name	Symbol	Wachovia	WB
Wyeth	Wye	Dress Barn	DBRN
Verizon	Vz	Pharm Resources	PRX
AT&T	T	Usb Holding	UBH
Barr Labs	BRL	Provident Bank	PBNY
Footstar FTAR	FTAR	Bank of NY	BK
Novartis	NVS	Gannet	GCI
Avon	AVP	Presidential Life	Plfe
Praxai	PX	Paxar	PXR
Lecroy	LCRY	ConEdison	ED

This is for your information only and is not an offer to sell, or a solicitation of an offer to buy, securities or instruments mentioned. Information has been obtained or derived from sources believed by us to be reliable, but we do not represent that it is accurate, complete or timely. Any opinions or estimates contained constitute our judgement at date of publication and are subject to change without notice.

This Stock Index is comprised of local stocks of interest based in Rockland County. The chart reflects the collective stock price performance based on a standardized benchmark of 1000 on January 1, 2003. Any market prices are only indicators of market values and are subject to change without notice. It is not possible for an investor to directly invest in the Rockland Stock Index.