An Important Letter From Silver Oak Advisory Group

March 25, 2008


Dear Clients and Friends of the Firm:

During this time of volatility in the financial markets, we wanted to write to you in order to assure you that we are paying close attention to what is occurring. More importantly, we want to let you know that we are continuing to focus on ensuring that your money is invested safely, commensurate with your goals and risk tolerance.

The Wall Street Journal called last week the "Week That Shook Wall Street." Headlines (and "talking heads") are reporting all kinds of bad news, enough to make even the most resolute investor experience some fear and anxiety. And it raises the inevitable question: should we be doing something different with our money to keep it safe? Most of us experience emotional reactions about our money, and it is normal to feel the impact of losses more intensely than gains. This is especially true for those who are taking distributions from their portfolios or are close to retirement. As we said in a letter to clients in November 1994: "The reality is, volatility is probably the most difficult aspect of investing for individuals to deal with on an ongoing basis, and as a result, it is something we give a lot of attention to at Silver Oak Advisory Group."

None of us can predict the investment future and there are no risk-free assets. During times such as these it can be difficult to resist looking for "the magic answer" to the question of what to do when the market is particularly volatile. Over the last 17 years of business, we have been challenged by the markets on many occasions. Happily, our broadly diversified portfolios came through each challenge successfully.

We at Silver Oak Advisory Group continue to believe in the strategy of investing across major asset classes with dissimilar patterns of return, in a disciplined balance of stocks and bonds. We use this strategy to create a prudent portfolio that is individualized to each client and designed to achieve your long term financial goals. We recognize that it is extraordinarily difficult to be a successful long term investor, especially in these times of nonstop media stories that often provide conflicting and confusing information. Please be assured that we continue to manage your portfolio with a deep commitment to your financial well-being.

And please contact us if you want to discuss your concerns on an individual basis.

Sincerely,

Deborah L. Thomas, JD, CFP®
Stephen W. Hewitt, JD, CFP®
Benjamin E. Gilbert, CFP®
Jessica M. Howe



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