Oppenheimer & Co. Inc.Marc MentonSenior Director of Investments16427 N. Scottsdale RoadSuite 390Scottsdale, AZ 85254480-596-1833marc.menton@opco.comhttp://fa.opco.com/marc.menton/

March 2014What Baseball Can Teach You aboutFinancial Planning

Test Your Knowledge of Financial Basics

What's New in the World of HigherEducation?

Graph: The S&P 500 Month by Month in 2013

Menton Advisory MonthlyCommitted to Your Financial Future

What Baseball Can Teach You about Financial Planning

See disclaimer on final page

Happy Birthday Presidents Lincoln(February 12, 1809) and Washington(February 22, 1732)

Spring training is a traditionthat baseball teams andbaseball fans look forward toevery year. No matter howthey did last year, teams inspring training are full of hopethat a new season will bring a

fresh start. As this year's baseball season getsunder way, here are a few lessons fromAmerica's pastime that might help youreevaluate your finances.

Sometimes you need to proceed onebase at a timeThere's nothing like seeing a home run light upthe scoreboard, but games are often won bysingles and doubles that get runners in scoringposition through a series of base hits. The onebase at a time approach takes discipline,something that you can apply to your financesby putting together a financial plan. What areyour financial goals? Do you know how muchmoney comes in, and how much goes out? Areyou saving regularly for retirement or for achild's college education? A financial plan willhelp you understand where you are now andhelp you decide where you want to go.

It's a good idea to cover your basesBaseball players minimize the odds that arunner will safely reach a base by standingclose to the base to protect it. What can you doto help protect your financial future? Try toprepare for life's "what-ifs." For example, buythe insurance coverage you need to make sureyou and your family are protected--this could belife, health, disability, long-term care, orproperty and casualty insurance. And set up anemergency account that you can tap instead ofdipping into your retirement funds or using acredit card when an unexpected expensearises.

You can strike out looking, or strike outswingingFans may have trouble seeing strikeouts in apositive light, but every baseball player knowsthat striking out is a big part of the game. Infact, striking out is much more common thangetting hits. The record for the highest career

batting average record is .366, held by TyCobb. Or, as Ted Williams once said, "Baseballis the only field of endeavor where a man cansucceed three times out of ten and beconsidered a good performer."

In baseball, there's even more than one way tostrike out. A batter can strike out looking by notswinging at a pitch, or strike out swinging byattempting, but failing, to hit a pitch. In bothcases, the batter likely waited for the right pitch,which is sometimes the best course of action,even if it means striking out occasionally.

So how does this apply to your finances? First,accept the fact that you're going to have hitsand misses, but that doesn't mean you shouldstop looking for financial opportunities. Forexample, when investing, you have no controlover how the market is going to perform, butyou can decide what to invest in and when tobuy and sell, according to your investmentgoals and tolerance for risk.

Warren Buffett, who is a big fan of TedWilliams, strongly believes in waiting for theright pitch. "What's nice about investing is youdon't have to swing at pitches," Buffett said."You can watch pitches come in one inch aboveor one inch below your navel, and you don'thave to swing. No umpire is going to call youout. You can wait for the pitch you want."

Note: All investing involves risk, including thepossible loss of principal.

Every day is a brand-new ball gameWhen the trailing team ties the score (oftenunexpectedly), the announcer shouts, "It's awhole new ball game!" Or, as Yogi Berrafamously put it, "It ain't over 'til it's over."Whether your investments haven't performedas expected, or you've spent too much money,or you haven't saved enough, there's alwayshope if you're willing to learn both from whatyou've done right and from what you've donewrong. Pitcher and hall-of-famer Bob Fellermay have said it best. "Every day is a newopportunity. You can build on yesterday'ssuccess or put its failures behind and start overagain. That's the way life is, with a new gameevery day, and that's the way baseball is."

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Test Your Knowledge of Financial BasicsWorking with a trusted financial professional isone of the best ways to help improve youroverall financial situation, but it's not the onlything you can do. Educating yourself aboutpersonal finance concepts can help you betterunderstand your advisor's recommendations,and result in more productive and potentiallymore prosperous financial planningdiscussions. Take this brief quiz to see howwell you understand a few of the basics.

Questions1. How much should you set aside in liquid,low-risk savings in case of emergencies?

a. One to three months' worth of expenses

b. Three to six months' worth of expenses

c. Six to twelve months' worth of expenses

d. It depends

2. Diversification can eliminate risk fromyour portfolio.

a. True

b. False

3. Which of the following is a key benefit ofa 401(k) plan?

a. You can withdraw money at any time forneeds such as the purchase of a new car.

b. The plan allows you to avoid paying taxes ona portion of your compensation.

c. You may be eligible for an employer match,which is like earning a guaranteed return onyour investment dollars.

d. None of the above

4. All of the money you have in a bankaccount is protected and guaranteed.

a. True

b. False

5. Which of the following is typically thebest way to pursue your long-term goals?

a. Investing as conservatively as possible tominimize the chance of loss

b. Investing equal amounts in stocks, bonds,and cash investments

c. Investing 100% of your money in stocks

d. Not enough information to decide

Answers1. d. Conventional wisdom often recommendssetting aside three to six months' worth of livingexpenses in a liquid savings vehicle, such as abank savings account or money market mutualfund. However, the answer really depends onyour own individual situation. If your (and your

spouse's) job is fairly secure and you haveother assets, you may need as little as threemonths' worth of expenses in emergencysavings. On the other hand, if you're a businessowner in a volatile industry, you may need asmuch as a year's worth or more to carry youthrough uncertain periods.

2. b. Diversification is a smart investmentstrategy that helps you manage risk byspreading your investment dollars amongdifferent types of securities and asset classes,but it cannot eliminate risk entirely. You still runthe risk of losing money.

3. c. Many employer-sponsored 401(k) plansoffer a matching program, which is like earninga guaranteed return on your investment dollars.If your plan offers a match, you should try tocontribute at least enough to take fulladvantage of it. (Note that some matchingprograms impose a vesting schedule, whichmeans you will earn the right to the matchingcontributions over a period of time.)

Because 401(k) plans are designed to help yousave for retirement, the federal governmentimposes rules about withdrawals for otherpurposes, including the possibility of paying apenalty tax for nonqualified withdrawals. Youmay be able to borrow money from your 401(k)if your plan allows, but this is generallyrecommended as a last resort in a financialemergency. Finally, traditional 401(k) plans donot help you avoid paying taxes on your incomeentirely, but they can help you defer taxes onyour contribution dollars and investmentearnings until retirement, when you might be ina lower tax bracket. With Roth 401(k)s, you paytaxes on your contribution dollars beforeinvesting, but qualified withdrawals will be freefrom federal, and in many cases, state taxes.

4. b. Deposits in banks covered by the FederalDeposit Insurance Corporation are protected upto $250,000 per depositor, per bank. Thismeans that if a bank should fail, the federalgovernment will protect depositors againstlosses in their accounts up to that limit. TheFDIC does not protect against losses in stocks,bonds, mutual funds, life insurance policies,annuities, or municipal securities, even if thosevehicles were purchased at an insured bank. Italso does not protect items held in safe-depositboxes or investments in Treasury bills.

5. d. To adequately pursue your long-termgoals, it's best to speak with a financialprofessional before choosing a strategy. He orshe will take into consideration your goals, yourrisk tolerance, and your time horizon, amongother factors, to put together a well-diversifiedstrategy that's appropriate for your needs.

A little knowledge can go along way in pursuing yourfinancial goals. For moreinformation about the topicsin this article, or for otherpersonal finance-relatedquestions, speak with atrusted financialprofessional.

All investing involves risk,including the possible lossof principal.

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What's New in the World of Higher Education?Whether your son or daughter is expectingcollege decisions any day now or whetheryou're planning ahead for future years, here'swhat's new in the world of higher education.

Costs for 2013/2014Question: What goes up every year no matterwhat the economy at large is doing? Answer:The cost of college. The reasons are many andvaried, but suffice it to say that this year, likeevery year, college costs increased yet again.

For the 2013/2014 year, the average cost at a4-year public college is $22,826, while theaverage cost at a private college is $44,750,though many private colleges charge over$60,000 per year (Source: The College Board,Trends in College Pricing 2013). Cost figuresinclude tuition, fees, room and board, books,and a sum for transportation and personalexpenses.

What's a parent to do? For starters, check outnet price calculators. Now required on allcollege websites, net price calculators can helpfamilies estimate how much grant aid a studentmight be eligible for at a particular collegebased on his or her individual academic andfinancial profile and the school's own criteria forawarding institutional aid. You'll definitely wantto spend some time running numbers ondifferent net price calculators to see howschools stack up against one another on thegenerosity scale.

New rates on federal student loansLast summer, new legislation changed the wayinterest rates are set for federal Stafford andPLUS Loans. Rates are now tied to the 10-yearTreasury note, instead of being artificially set byCongress. For the current academic year (July1, 2013, through June 30, 2014), the rates are:

• 3.8% for undergraduate students borrowingsubsidized and unsubsidized Stafford Loans

• 5.4% for graduate students borrowingunsubsidized Stafford Loans

• 6.4% for parents borrowing PLUS Loans

The rates are determined as of June 1 eachyear and are locked in for the life of the loan.

A renewed focus on IBRFederal student loans are the preferred way toborrow for college because they offer a uniquerepayment option called "income basedrepayment," or IBR. Under IBR, a borrower'smonthly student loan payment is based onincome and family size and is equal to 10% ofdiscretionary income. After 20 years of on-timepayments, all remaining debt is generallyforgiven (loans are forgiven after 10 years for

those in qualified public service).

Enrollment in the program has been relativelymodest, but last fall, the Department ofEducation contacted borrowers who werehaving difficulty repaying their student loans tolet them know about IBR. The department alsoput the IBR application online and has made itpossible for applicants to import informationfrom their tax returns.

A government push for informationLast summer, as part of his push to makecollege more affordable, President Obamaannounced a proposal that would requirecolleges to report the average debt load andearnings of graduates (in addition to theinformation on tuition costs and graduationrates that they already report), with theavailability of federal financial aid being linkedto those ratings. In response, most collegeshave cried foul, claiming that average debt isnot a valid indicator of affordability becausecolleges have vastly different endowments andabilities to award institutional aid, and thatpost-graduation salaries can depend onvariables outside of a college's control. Noreporting requirement has been finalized yet,but the trend is clearly toward the governmentrequiring colleges to make their costs andreturn on investment as transparent as possibleso families can make more informed choices.

The growth of MOOCsYou may have heard the term "MOOCs," andgoing forward, it's likely you'll hear it a lot more.MOOCs stands for "massive open onlinecourses," and these large-scale, online classeshave the potential to revolutionize highereducation. One of the earliest MOOCs was acourse on artificial intelligence at StanfordUniversity in 2011, which attracted 160,000students from all over the world (though only23,000 successfully completed the course,earning a certificate of recognition).

Today, hundreds of MOOCs are offered free ofcharge by many well-known, leadinguniversities. The piece of the puzzle that hasyet to be solved is what credit or degree will begiven when courses are completed and howpricing will work. But the combination of qualitycourses, robust online learning technology, andthe wide availability of broadband, coupled withthe very high cost of a traditional collegeeducation, makes it likely that the popularity ofMOOCs will only grow in the future, whetherpeople enroll to earn serious credentials orsimply for their own enjoyment and curiosity.

The appeal of MOOCs

The combination of qualitycourses, robust online learningtechnology, and the wideavailability of broadband,coupled with the very high costof a traditional collegeeducation, makes it likely thatthe popularity ofMOOCs--which stands for"massive open onlinecourses"--will only grow in thefuture, whether people enroll toearn serious credentials orsimply for their own enjoymentand curiosity.

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Oppenheimer & Co. Inc.Marc MentonSenior Director of Investments16427 N. Scottsdale RoadSuite 390Scottsdale, AZ 85254480-596-1833marc.menton@opco.comhttp://fa.opco.com/marc.menton/

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2014

This newsletter should not beconstrued as an offer to sell or thesolicitation of an offer to buy anysecurity. The information enclosedherewith has been obtained fromoutside sources and is not theproduct of Oppenheimer & Co. Inc.("Oppenheimer") or its affiliates.Oppenheimer has not verified theinformation and does notguarantee its accuracy orcompleteness. Additionalinformation is available uponrequest. Oppenheimer, nor any ofits employee or affiliates, does notprovide legal or tax advice.However, your OppenheimerFinancial Advisor will work withclients, their attorneys and their taxprofessionals to help ensure all oftheir needs are met and properlyexecuted. Oppenheimer & Co. Inc.Transacts Business on all PrincipalExchanges and is a member ofSIPC.

Graph: The Best of Times, the Worst of Times, and 2013

In 2013, the Standard & Poor's 500 had its best year since 1997, while the Dow Jones IndustrialAverage set 52 new record closing highs and the Nasdaq hit a level it hadn't seen in more than13 years. Here's how 2013's price gains compare to each index's best and worst years since1926 by percentage gain as listed in the "Stock Trader's Almanac 2014." Note: All investinginvolves risk, including the possible loss of principal.

Graph: The S&P 500 Month by Month in 2013

Past performance is no guarantee of future results, but stocks had an extraordinary run in 2013.The Standard & Poor's 500 set 45 new all-time closing records during the year and by Novemberhad surpassed 1,800 for the first time ever. Despite some stumbles during the summer, by theend of 2013 the index had nearly tripled since its March 2009 financial-crisis low. Note: Allinvesting involves risk, including the possible loss of principal.

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