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| Is My Money Safe? |
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In view of all that has been happening in the financial services industry, everyone is right to ask this question. While there is no way to
escape market fluctuations, you should not have to worry about fraud or insolvency losses.
At THE RETIREMENT SOURCE® we believe that the best protection is in the company we keep. As a completely independent firm providing
financial advice and investment products, we are free to choose to affiliate with any of dozens of companies providing investment
brokerage and Registered Investment Advisory services. If at any time we should becomde concerned abot the level of service or potential
solvency problems of any of our strategic alliances, we could make a move immediately of our own volition.
We have chosen to work as a branch office of Crown Capital Securities, L.P. and use Pershing, LLP as or primary
custodian and trade execution connection for several reasons:
- We have a long history with them and know them well.
- We are confident of their financial viability.
- We have seen that they provide the necessary services to our firm and our clients as promised.
- There are no quotas and no propietary products to push.
As you read about our strategic alliances, we think you will agree we have provided a great measure of protection for our clients.
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It is very important that you understand that neither THE RETIREMENT SOURCE®, Crown Capital
Securities, L.P. nor any staff member has any control over or access to your money. Your cash
and securities are always held by a separate custodian.
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 Crown Capital Securities, L.P. is an
independent broker-dealer based in Orange, California intent on providing the highest quality of
service. Because they are independent, Crown gives its investment representatives the freedom
to decide which products and services are the best fit for you.
More importantly, representatives have access to a wide array of the most respected products and
services available in order to best meet your goals and objectives. Included in Crown Capital's
suite of non-propietary products are stocks, bonds, mutual funds, direct participation products and a
full selection of fixed and variable annuities and life insurance products. In addition, representatives
can provide a full range of fee-based services ranging from financial planning consultations to
comprehensive, institutional portfolio management.
While Crown is licensed as a broker-dealer and Registered Investment Advisor in all 50 states,
representatives must be individually licensed or registered in each state to solicit clients.
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Pershing, a subsidiary of The Bank of
New York Mellon Corporation, is well capitalized with a 70 year history of serving financial institutions.
They are the largest global outsourcing provider offering transaction clearing in more than 60 markets,
order execution in 45 markets and foreign exchange in 50 currencies.
The firm currently serves 1,150 broker-dealers such as Crown Capital Securities, L.P., registered
investment advisors, and money managers globally, including some of the leading firms in the industry,
who have selected Pershing as their clearing agent or custodian for their clients' assets.
As a registered broker-dealer, Pershing is subject to the Uniform Net Capital Rule of the Securities
and Exchange Act of 1934. Pershing elected to use the alternative calculation method, which requires
the firm to have a net (liquid) capital of not less than 2% of the aggregate debit items arising from
customer transactions. At June 30, 2008, the company's regulatory net capital of $1.3 billion exceeded the
minimum required by $1.1 billion with a ratio of 15.54% vs. the 2.0% required.
You can learn more about Pershing's financial condition and the safety and security of assets held
in custody at Pershing from the firm's website at www.Pershing.com.
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| Securities Investor Protection Corporation (SIPC) |
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Both Crown Capital Securities, L.P. and Pershing LLC are members of the Securities Investor Protection
Corporation (SIPC). SIPC provides $500,000 of coverage per account, including $100,000 for claims
for cash awaiting reinvestment. The account protection applies when a SIPC member firm fails or is
unable to meet its financial obligations to securities customers. This does not protect against losses
from rise and fall in the market value of investments. See www.sipc.org for a detailed
explanation of the coverage.
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| UNLIMITED COVERAGE |
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Pershing provides added insurance through Lloyd's of London to cover the full value of client
accounts against the firm's failure. This additional protection is automatic to all clients using
Pershing for account custody at no cost to the client. More information is available at
www.Pershing.com.
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| REGARDING MONEY MARKET FUNDS |
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The United States Treasury announced a temporary guarantee program for money market funds on
September 29, 2008. This program provides coverage for amounts held by participating money
market funds on that date. Originally, the guarantee was to run until December 31, 2008, but was
extended to September 19, 2009. It is unknown whether or not this deadline will be extended
again. Meanwhile, current shareholders can rest easy that they have solid protection. The money
market funds available through Pershing sweep accounts are all covered under this program.
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