In this issue:
	Our question of the quarter: Interest Rates are Rising: Trends in Home Ownership Positive Movement in the Markets Upcoming Speaking Events From Angela Thomson, CFP.

Interest Rates are Rising: Trends in Home Ownership

In case you haven't noticed, interest rates are on the rise. Many had considered refinancing and played the waiting game with adverse results. I do not expect interest rates to drop in the near future. If you are contemplating refinancing, the general rule of thumb is there has to a reduction of at least 1% point, for the refinance to be attractive. Other factors to consider: how long do you plan on being in the home, how large is your remaining mortgage? There are alternatives to refinancing for clients with relatively small mortgages of under $50,000. These clients may want to consider a line of credit on their property instead of a refinance. A line of credit generally does not include points and closing costs and offers an attractive variable rate. Many of these programs will convert to a fixed rate after 7 years, but if you can continue your mortgage payment schedule, they offer an attractive alternative to reducing your mortgage costs. Another shift that can be seen in the housing market is an increase in the percentage borrowed to finance new homes. Today the average person borrows 67% of the purchase price as compared to 41% 20 years ago. _______________________________________________ _______________________________________________

Positive Movement in the Markets

The stock market has shown consistent resilience through the summer. Trading volume over the summer was light, but finished the summer season in a positive trading range. I anticipate continued growth through September, although this month has traditionally been soft in terms of stock performance. At this writing, the DJIA was up YTD by 12.9%, NASDAQ +35.6%, S&P 500 +14.7% and the Russell 2000 up 29.8%. What does this mean? Some of you may think it's time to take some profits from your gains. Although we sold off some of our positions last month, those sales were primarily stocks and mutual funds that were either out of sector favor or not mirroring the movement in the market. We will continue to dollar- cost average into the market over the coming weeks. There will still be highs and lows though the end of the year, but economic data indicates that investments are strengthening and the recovery will continue through the year. Those of you that are still sitting in cash on the sidelines, it's time to move back into the market. Please contact me to discuss any investment questions you may have or to review specific recommendations. _______________________________________________ _______________________________________________ IMPORTANT CHANGES FOR 2004 ***Coastal Financial Planning, Inc. will be changing it's portfolio mangement arangements for new clients starting on January 1st, 2004.*** Beginning next year, our portfolio minimums for active asset management will increase to $100,000. We will continue to provide services for existing clients with smaller balances. New clients that do not meet our minimums will be encouraged to establish electronic accounts and utilize our services on an hourly basis to facilitate their planning and investing process. _______________________________________________ _______________________________________________

Upcoming Speaking Events

I will be speaking at the following event in October. Saturday, October 4th - 2:00 p.m. _______________________________________________ Second Annual Consumer Financial Expo, sponsored by the Financial Planning Association of Rhode Island. Topic: Financial Planning - What consumers need to know. This presentation will be in a panel format. The panel participants will consist of the FPA-RI officers. There will time allotted for a Q & A session, which will follow the presentation. The Consumer Financial Expo is open to the public and registration begins at 9:00 a.m. It will be held at the Crowne Plaza in their Grand Ballroom. Two educational sessions will run each hour throughout the day. Exhibitors will be present to take your specific questions. Visit the Financial Planning Association's website for complete details at www.fpari.com. I look forward to seeing you there. _______________________________________________ _______________________________________________ Visit the Financial Planning Assocation website. »

From Angela Thomson, CFP.

Your planner in the news. Angela was quoted this summer in the Houston Chronicle. The article discussed where bonds fit into portfolios and focused on how most portfolios need some type of exposure to bond markets. Most recently she was also quoted in the Providence Journal on what to do with the Child Tax Credit rebates when parents receive them. Angela Thomson is the founder of Coastal Financial Planning. She is a graduate of Bryant College. She completed her CFP® course work in conjunction with Northeastern University, and is a CFP® licensee. Additionally, she is a registered investment advisor. She serves as an adjunct professor at Bryant College teaching the CFP® Program. Angela Thomson serves as an officer for the Financial Planning Association of Rhode Island. She also volunteers as a Money Mentor, working in conjunction with the Commonwealth of Massachusetts Treasurers office and also with the Rhode Island Chapter of the Financial Planning Association. Coastal Financial Planning is located at 13 East Butterfly Way, Lincoln, RI 02865.