MOR Investing - Summer 2008

Life Insurance at Various Life Stages

Your need for life insurance changes as your life changes. When you're young, you typically have less need for life insurance, but that changes as you take on more responsibility and your family grows. Then, as your responsibilities once again begin to diminish, your need for life insurance may decrease. Let's look at how your life insurance needs change throughout your lifetime.

Going to the chapel
Married couples without children typically still have little need for life insurance. If both spouses contribute equally to household finances and do not yet own a home, the death of one spouse will usually not be financially catastrophic for the other.

Once you buy a house, the situation begins to change. Even if both spouses have well-paying jobs, the burden of a mortgage may be more than the surviving spouse can afford on a single income. Credit card debt and other debts can contribute to the financial strain.

To make sure either spouse could carry on financially after the death of the other, both of you should probably purchase a modest amount of life insurance. At a minimum, it will provide peace of mind knowing that both you and your spouse are protected.

Again, your life insurance needs increase significantly if you are caring for an aging parent, or if you have children before marriage. Life insurance becomes extremely important in these situations, because these dependents must be provided for in the event of your death.

Your growing family
When you have young children, your life insurance needs reach a climax. In most situations, life insurance for both parents is appropriate.

Single-income families are completely dependent on the income of the breadwinner. If he or she dies without life insurance, the consequences could be disastrous. The death of the stay-at-home spouse would necessitate costly day-care and housekeeping expenses. Both spouses should carry enough life insurance to cover the lost income or the economic value of lost services that would result from their deaths.

Dual-income families need life insurance, too. If one spouse dies, it is unlikely that the surviving spouse will be able to keep up with the household expenses and pay for child care with the remaining income.

Moving up the ladder
For many people, career advancement means starting a new job with a new company. At some point, you might even decide to be your own boss and start your own business. It's important to review your life insurance coverage any time you leave an employer.

Keep in mind that when you leave your job, your employer-sponsored group life insurance coverage will usually end, so find out if you will be eligible for group coverage through your new employer, or look into purchasing life insurance coverage on your own. You may also have the option of converting your group coverage to an individual policy. This may cost significantly more, but may be wise if you have a pre-existing medical condition that may prevent you from buying life insurance coverage elsewhere.

Make sure that the amount of your coverage is up-to-date, as well. The policy you purchased right after you got married might not be adequate anymore, especially if you have kids, a mortgage, and college expenses to consider. Business owners may also have business debt to consider. If your business is not incorporated, your family could be responsible for those bills if you die.

Single again
If you and your spouse divorce, you'll have to decide what to do about your life insurance. Divorce raises both beneficiary issues and coverage issues. And if you have children, these issues become even more complex.

If you and your spouse have no children, it may be as simple as changing the beneficiary on your policy and adjusting your coverage to reflect your newly single status. However, if you have kids, you'll want to make sure that they, and not your former spouse, are provided for in the event of your death. This may involve purchasing a new policy if your spouse owns the existing policy, or simply changing the beneficiary from your spouse to your children. The custodial and noncustodial parent will need to work out the details of this complicated situation. If you can't come to terms, the court will make the decisions for you.

Your retirement years
Once you retire, and your priorities shift, your life insurance needs may change. If fewer people are depending on you financially, your mortgage and other debts have been repaid, and you have substantial financial assets, you may need less life insurance protection than before. But it's also possible that your need for life insurance will remain strong even after you retire. For example, the proceeds of a life insurance policy can be used to pay your final expenses or to replace any income lost to your spouse as a result of your death (e.g., from a pension or Social Security). Life insurance can be used to pay estate taxes or leave money to charity.

Morgan Keegan has the resources to help you evaluate how life and other insurance (long term, disability, etc.) fits into your overall financial plan. Contact your Morgan Keegan financial advisor today for more information on how to protect your family and your assets.

Important Messages for Account Holders

Securities purchased on margin are the firm’s collateral for the loan to you. If the securities in your account decline in value, so does the value of the collateral supporting your loan. As a result, the firm can take action, such as issue a margin call and/or sell securities or other assets in any of your accounts held with the member, in order to maintain the required equity in the account. It is important that you fully understand the risks involved in trading securities on margin. These risks include the following:

You can lose more funds than you deposit in the margin account.
The firm can force the sale of securities or other assets in your account(s).
The firm can sell your securities or other assets without contacting you.
You are not entitled to choose which securities or other assets in your account(s) are liquidated or sold to meet a margin call.
The firm can increase its “house” maintenance margin requirements at any time and is not required to provide you advance written notice.
Your are not entitled to an extension of time on a margin call.

Morgan Keegan Research Tops in the Industry

Since our founding in 1969, quality investment research has been the hallmark of the Morgan Keegan. Nearly four decades later, Morgan Keegan’s Equity Research team continues to rise above the competition.

In May, a total of seven Morgan Keegan equity research analysts were named among the nation’s best in two annual surveys published by The Financial Times and The Wall Street Journal. Six Morgan Keegan analysts were among the top-ranked stock pickers and earnings estimators in the nation in the Financial Times/StarMine 2008 Global Analyst Awards published May 16, 2008. They are:

Robert Mains, First Vice President –
#1 Stock Picker in the Real Estate Investment Trusts (REITs) Industry
Brad Stephens, Senior Vice President –
#1 Stock Picker in the Specialty Retail Industry
Simon Leopold, Managing Director –
#1 Earnings Estimator in the Communications Equipment Industry
Bob Derrington, Managing Director –
#2 Earnings Estimator in the Restaurants Industry
Chaz Jones, First Vice President –
#2 Earnings Estimator in the Road & Rail Industry
Robert Dodd, Managing Director –
#3 Earnings Estimator in the IT Services Industry

Also, Harsh Kumar, Managing Director, who follows the specialty semiconductor industry for Morgan Keegan, was ranked third among 73 qualified analysts in that sector in The Wall Street Journal’s Best on the Street annual analyst survey published May 19, 2008.

As a Morgan Keegan client, you can directly access the latest research recommendations made by all of our talented equity research analysts. Contact your Morgan Keegan financial advisor to learn how.

A Retirement Planning Guide Designed Just For You

Retirement—the focal point of most individual investors’ financial plan. We work hard everyday to prepare for retirement and we want our money to work hard everyday, too. Moreover, we want our money to continue working for us long after we have stopped, and an effective retirement plan can see that it does.

Retirement Planning Guide It is never too soon, or too late, to begin planning for your retirement. The decisions you make today about retirement will affect your financial well-being in the future, and the more you know about your options for retirement the better prepared you will be.

To help you navigate the road to a happy, secure retirement, Morgan Keegan has created a Retirement Planning Guide specifically for Morgan Keegan clients. In it you will find important information and helpful tips for designing an effective retirement plan with your Morgan Keegan financial advisor.

The Morgan Keegan Retirement Planning Guide will help you assess your current financial picture in light of the basics of retirement planning and your personal goals. Then the guide takes you step-by-step through the process of determining your income needs and options (including IRAs, 401(k)s, Social Security benefits and their various tax implications) to meet your retirement goals. Understanding these important aspects of retirement planning will put you in a position to make wise choices now about income, savings, investments and other retirement tools.

Your retirement gets closer every day—start getting ready now! To receive your copy of the Morgan Keegan Retirement Planning Guide, contact your Morgan Keegan financial advisor.

Earn More for Investing More

Now the available cash in your Morgan Keegan account can start earning more for you. Morgan Keegan and Regions have enhanced the Regions FDIC-Insured Deposit Account** to give you greater returns based on your Morgan Keegan household balance. This cash sweep account option is an excellent alternative for Morgan Keegan clients desiring the added protection of our only FDIC-insured account, now tiered to allow you to earn more for investing more with Morgan Keegan:

Household Value	Current Rate*
Greater than $1,000,000	2.15%
$500,000 – $1,000,000	1.55%
$250,000 – $500,000	1.40%
$0 – $250,000	1.15%

Household Value is determined by our in-house analysis of household assets as coded by your financial advisor. Consult with your Morgan Keegan financial advisor to assess your Household Value and to select the FDIC-Insured account as your cash sweep option.

* Rates as of May 30, 2008. Subject to change without notice.

**FDIC insurance applies to deposits, not investments. Deposit accounts at Regions are insured by the FDIC up to the Standard Maximum Deposit Insurance Amount (“SMDIA”) permitted under federal law, which for most types of accounts is currently $100,000 in principal and accrued interest per depositor for all accounts in the same right and capacity. SMDIA is higher for certain types of retirement accounts and other deferred compensation plans. More detailed information available at www.fdic.gov.

**Cash and securities protected by SIPC up to stated limitations of $500,000 maximum per eligible client, of which $100,000 may be cash. SIPC does not cover funds held in FDIC-insured accounts, nor does it protect against losses due to fluctuations in the market value of investments. More detailed information available at www.sipc.org.

**Supplemental protection provided by Morgan Keegan & Company, Inc. through Lloyd’s of London, which generally follow the conditions and limitations of SIPC. The per account limitation of this coverage will be $124,500,000 for all Morgan Keegan accounts, subject to overall aggregate loss limit of $400 million. Explanation brochure available upon request.