At Gentry, we use the same open architecture concept for 401(k)’s that we employ for our private asset management.  This allows us to be flexible and to provide a unique plan that is fully customized for the client and its employees.  We understand what the benefits market needs today and try to anticipate what will be needed tomorrow.  Having an open architecture platform helps manage fiduciary risks and encourage positive employee behavior for retirement readiness. If your company has not reviewed its current 401(k) plan in some time, it is highly advised in order to stay compliant.   Gentry will provide a detailed analysis of your current plan and make recommendations for any changes.

Gentry provides complimentary and holistic financial planning for employees as well as wealth management planning for executives.

This includes investment quality and choice to meet the needs of a diverse employee base with different levels of sophistication.

• We offer robust, yet easy-to-use tools for participants to increase adoption, streamline enrollment, and encourage account access, investing and monitoring.
• A priority for us is to offer attractive and highly transparent pricing that leaves as much money in the plan as possible and ensures fiduciary requirements are being met.
• We are an excellent customer service orientated and responsive business partner.
• We offer consultation on fiduciary issues and design of plan operations.
• Quarterly statements will be delivered directly to participants including a year-end summary.
• Gentry can provide participation at Trustee/Investment Committee meetings.

THE DEBATE

There are three issues which our elected officials are discussing: the debt ceiling, the need to cut
our deficit, and tax rates. Our elected officials will address each of these issues over time, but time
is of the essence and it is running out. August 2nd is the date set by the Treasury as to when the
debt ceiling needs to be raised or we will not be able to pay our bills.

THE RATING AGENCIES

The longer the opposing politicians drag this out, the risk of the rating agencies downgrading US
Treasury debt increases, as well as the subsequent downgrade of US Agency debt and US Agency
MBS issues. The rating agencies were criticized so strongly for their inability to warn of the 2007-
2008 credit crisis that a natural way to regain their credibility would be to downgrade the
obligations of the US.

Though not being one of the big three rating agencies (Moody’s, S&P, and Fitch), the Egan-Jones
rating firm has already reduced US Treasury debt to a AA level. Moody’s is seemingly indicating
if the debt ceiling is raised, with or without deficit reductions, it will remove the risk of a
downgrade. However, S&P is apparently saying that unless both an increase of the debt ceiling
and substantial deficit reduction steps take place, the risk of a downgrade will remain. The
downgrading of the credit rating will ultimately have a huge impact on our budget as our cost of
borrowing will rise as new Treasury issues are brought to market.

THE WORST CASE: 10% PROBABILITY

The political stalemate related to raising the debt ceiling and cutting the deficit has the potential to
cause the destabilization of the US financial system. We believe if a default were to occur, within
a one month period:
● The US stock market could fall by a minimum of 15%.
● The yield of the 10-year US Treasury, which is now at approximately 2.9%, could rise
to above 4%.
● The value of the US dollar could take a hit cushioned by the debt crisis in Europe,
which could result as a much greater global problem than the US deficit situation.
● Sources of business and personal credit could become difficult to obtain.
● The US economy could be thrown into a severe recession.
● US housing prices could drop by a minimum of 10%.
● The volume of foreign buying at US Treasury auctions could diminish, perhaps
severely.

BEST CASE: 10% PROBABILITY

What is the definition of the “resolution” we believe must take place to avoid all consequences?
To us at Greenrock, a resolution that would avoid all consequences would be the raising of the
debt ceiling and reductions to spending/increases to revenue of at least $2 trillion over the
upcoming ten-year period. The Gang of Six proposals appear at this point to be dealing with this
possibility.

MOST LIKELY CASE: 60% PROBABILITY

We are now less than two weeks away from the trigger date. Do we at Greenrock know there will
not be a resolution? No. We have no way of knowing whether a resolution will come about. Our
best guess at this point is that there is a) a 10% chance of no resolution and effectively a default of
US debt, b) a 60% chance for the McConnell/Reid resolution with a raising of the debt ceiling and
the President directed to make cuts equal to the size of the rise, and c) a 10% probability to some
version of the Gang of Six proposal with an increase in the debt ceiling and $4 trillion in the
combination of cuts and revenue increases. Default is of course the worst scenario and would
cause the results detailed above. The McConnell/Reid resolution could have many of the same
results but to a more muted level. A version of the Gang of Six proposal would not be a final
solution to our country’s deficit problems, but would probably result in a decent rally in the stock
market.

WHAT ABOUT THE OTHER 20%?

The other 20% is somewhere between the best case and the most likely case and somewhere
between the worst case and the most likely case. In addition, our putting an 80% probability on
anything at this point overstates our belief in our prediction abilities. Honestly, we would say the
same thing about 60%, but we think you deserve our guess.

WHAT SHOULD YOU DO?

We believe a contingency plan must be created as a hedge against the possibility of a complete
resolution, such as the Gang of Six proposal, not taking place. What do we think should be the
primary goal for a contingency plan? We believe the focus should be on protecting principal value
to as great an extent as possible, recognizing that such protection in this case cannot be absolute.
We first would recommend a major, though not complete reduction in the percentage allocated to
equities. If no resolution is reached or the rating agencies move on a downgrade, equities will take
the largest hit.

In fixed income, we would be recommending absolute return strategy managers with the ability to
dramatically reduce portfolio durations in the face of almost certain increases in interest rate
levels. The majority of the absolute return fixed income products we currently recommend have
already dramatically reduced their percentage allocations to US securities with heavy
concentrations in credit at both the corporate and mortgage levels, and global debt.

Though credit will likely suffer some losses, the losses will be much smaller than caused by the
downgrade to US debt. Further, credit will begin at much higher coupon levels than US
Government debt and will gain from a yield spread compression relative to US debt.

There is one major exception we believe should not be kept/employed as part of the contingency
plan from among the absolute return products we have being recommending since October 2010.
That is the Delaware Absolute Return MBS Fund. That Fund employs strictly Treasuries,
Agencies and Agency MBS. If the contingency plan is to be put in place, with this fund being
strictly US debt, direct and Agency securities, it should be excluded. A second reason for its
exclusion is if the Government is squeezed to raise cash, it might be forced to unload en mass the
$1.4 trillion in Agency MBS issues it owns which would crater the price level of this asset class.

We would be recommending the liquidation of: high yield debt, since high yield debt will decline
hand in hand with the decline of the stock market and the slowing of the economy, and all
commodities including oil (and probably also silver and gold). Relative to gold and silver, we do
not regard them as an automatic investment hedge. Gold will likely be the best performing asset
class if a default were to occur, but would suffer the largest losses if a resolution is reached.

WHAT RISKS EXIST IN IMPLEMENTING THE CONTINGENCY PLAN?

What do we believe might be the profit loss if the contingency plan is implemented and a true
resolution is reached? Relative to the bond market, it would be little if anything. Yields are already
at such low levels that capital gain returns would be virtually non-existent since how much lower
can they go? In the stock market, a resolution will almost certainly spark a rally, but to what
extent? 3% to 5% at most?

WHAT TIMING DO WE RECOMMEND FOR IMPLEMENTATION OF THE CONTINGENCY
PLAN?

With the deadline being less than two weeks away, what timing do we recommend before
implementing this contingency plan? We believe all actions can be deferred for about a week. But,
with only a week to go, if a resolution does not appear to be near, we believe the contingency plan
must be put into place.

The markets continue to believe a resolution will be reached. We are not saying the markets are
wrong. However, we believe all client portfolios should be hedged by next week if a resolution is
not well in the works. In all likelihood, such a step will cost clients some small level of profit, but
protecting against the risk that will exist will in our opinion be well worth that almost certainly
small level of give-up.

WHAT ABOUT GETTING BACK INTO THE MARKETS?

Toward making certain that give-up is indeed small, if a resolution is completed by August 2nd
with an increase in the debt ceiling and budget deficit reduction/revenue increase steps, the rating
agencies will almost certainly be out of the picture and the stock market may rally. Therefore, it
will be our recommendation that the equity component of client portfolios be reestablished. As to
the fixed income component, we would be strongly recommending a major segment be in absolute
return fixed income strategies recognizing the continuing likely of rising rates in the not distant
future.

If no resolution is completed by August 2nd, we recommend a delay in reestablishing all former
positions pending the evolving financial conditions.

If you would like to discuss these thoughts and you might implement some of these ideas, please
call us.

Terrorized by the calamitous events that have already taken place, numerous residents live in fear of what’s to come, while the remainder of the country is baffled in horror. In the midst of this seemingly endless natural disaster, the economic aftermath of these tornado outbreaks is still up in the air. One thing is certain, however, for many, the already trying times are about to get much worse.

With neighborhoods and cities in peril and thousands of people in need, we had no choice but to get involved with a donation to support disaster relief efforts and to help rebuild these stricken communities as quickly as possible.

2011 Tornado Outbreaks At a Glance

Between December 30, 2010, and January 1, 2011, seven tornadoes struck from Mississippi up north to Illinois, killing nine people in the process and setting the stage for one of the deadliest years for tornado outbreaks the U.S. has ever seen. While the remainder of January and most of February slipped into a state of peaceful inactivity, it was merely the calm before the storm. A pattern shift occurred on February 25, 27 and 28, which developed 55 tornadoes and brought the total for the month up to 59, making it the fourth most active February in recorded history.

During the month of March, the U.S. experienced 57 tornadoes — nothing out of the ordinary. However, in the beginning of April, when the typical tornado season begins, things took a turn to produce 42 twisters. The rest of the month was met with lots of tornado activity, with 670 touching down. Two of the tornado outbreaks went on for several days and turned out to be among the largest ever recorded in the U.S.

May, a normally very active month, started out in uncharacteristic quiet. Things changed on May 21 when severe weather was followed by a series of violent twisters. This tornado outbreak lasted for several days and had 160 touchdowns, bringing May right back up to its usual activity level.

June activity hit the ground running in Massachusetts, an uncommon place for tornado outbreaks. Touchdowns occurred in multiple areas of the state, including Southbridge, Monson, Sturbridge, Springfield and West Springfield

As of the most recent tally on June 1, there have been 1,448 reported tornadoes in the United States, with 1,007 those confirmed by the National Weather Service (NWS). The death toll continues to rise well above 500, the near equivalent of combined tornado deaths during the last 10 years.

Many speculate as to why the tornado outbreaks are occurring, whether due to La Nina, global warming or the apocalypse. Regardless of the reason, we at Gentry Wealth Management know one thing — in times of crisis, the best thing to do is band together and lend a hand. We hope our donation and support of tornado relief efforts inspires you to do the same.

Gentry Wealth Management is a fee-based financial planning and private wealth management firm specializing in wealth accumulation and preservation strategies. Our senior staff has a diversified array of experience in the investment and financial planning marketplace.

Gentry’s clients are corporate executives, professionals, business owners, physicians, and affluent individuals and their families who entrust us to understand their whole picture and proactively implement solutions. They recognize that managing their financial affairs can be a complex process, which is why our dedicated team takes a personal, one-on-one approach to methodically institute investment policies. Gentry’s recommendations are based solely on each client’s specific needs, circumstances, and goals. We are an excellent fit for those clients who seek a personalized relationship approach to managing their financial affairs as opposed to a corporate-type agenda.

Gentry is a private wealth management firm specializing in integrating all of the financial intricacies that comprehensive wealth management requires. The Gentry Way provides for innovative and superior investment strategies combined with first class service, which includes direct access to the senior advisor making the investment decisions.

WE ARE A GOOD FIT IF:

• You prefer a boutique firm with a personal approach that places your interests ahead of its own.
• You are discouraged by corporate relationships with revolving personnel and their own agenda.
• You desire a customized program targeted at your specific needs that addresses all the issues in your financial world.
• You want a “service center” that can coordinate your complex affairs, including your investment program, tax accounting, financial planning, charitable giving, estate planning and administration, and record keeping.
• You insist on a transparent process with no hidden relationships, no corporate biases, and no concealed fees.

With Gentry’s open architecture, we seek out the best money managers based on the combined factors of experience, skill, discipline, and results. Rather than having a modest knowledge of thousands of managers, we are committed to knowing a smaller group extremely well. Gentry’s exclusive and recommended “short list” must successfully navigate an extensive review process, including an intensely qualitative analysis conducted by a senior managing director of the firm. Such direct interaction differentiates Gentry from many of its competitors.

Our priority is the preservation of capital. We seek appreciation only when it is consistent with prudent risk, using portfolio diversification as the cornerstone of our approach. We minimize risk by using asset classes that range from fixed income securities with guaranteed yields to the equities of different segments of the market, identified by unique investment criteria.

Gentry Wealth Management is a fee-based financial planning and private wealth management firm specializing in wealth accumulation and preservation strategies. Our senior staff has a diversified array of experience in the investment and financial planning marketplace.

Gentry’s clients are corporate executives, professionals, business owners, physicians, and affluent individuals and their families who entrust us to understand their whole picture and proactively implement solutions. They recognize that managing their financial affairs can be a complex process, which is why our dedicated team takes a personal, one-on-one approach to methodically institute investment policies. Gentry’s recommendations are based solely on each client’s specific needs, circumstances, and goals. We are an excellent fit for those clients who seek a personalized relationship approach to managing their financial affairs as opposed to a corporate-type agenda.