Commentary

March 2005 performance review

April 23, 2005

We are making the trades in the Conservative portfolio, effective April 30th, 2005.

Because of the relative complexity of these trades we have created an easy-to-use trade worksheet that subscribers who invest in the Conservative Portfolio can download, print out, and fill in to help them determine how much of their holdings need to be bought and sold to match our post-trade portfolios and to rebalance. You can download the Conservative Portfolio Worksheet by <a href="https://maxadvisor.com/newsletter/worksheets/conservative.worksheet.pdf">clicking here.</a> Please note that the document is an Adobe PDF. If you need to download Adobe reader, you can find it by <a href="http://www.adobe.com/products/acrobat/readstep2.html">clicking here</a>.

Sales

<ul><li>Decrease international bond allocation: American Century International Bond (BEGBX) from 10% to 5% of total portfolio.

<li>Decrease utilities sector allocation: American Century Utility Income (BULIX) from 10% to 5% of total portfolio.

<li>Sell entire international diversified allocation: Forward International Small Companies (PISRX) from 5% to 0% of total portfolio.

<li>Decrease balanced fund allocation: Bridgeway Balanced Fund (BRBPX) from 15% to 10% of total portfolio.</ul>

Buys

<ul><li>Buy new healthcare sector allocation: Health Care Select SPDR (XLV) from 0% to 5% of total portfolio.

<li>Increase diversified bond allocation: Harbor Bond (HABDX) from 15% to 25% of total portfolio.

<li>Buy new international stock allocation: SSgA International Growth Opportunities (SINGX) from 0% to 5% of total portfolio.</ul>

Portfolio After Trades

<td width="105" height="20">Category</td>

%</div>

</td>

<td height="20">Ticker</td>

</tr>

<td bgcolor="#f0eec5" width="105" height="20">Diversified Bond</td>

25%</div>

</td>

<td bgcolor="#f0eec5" height="20">HABDX</td>

<td bgcolor="#f0eec5" width="163" height="20">Harbor Bond</td>

</tr>

5%</div>

</td>

<td height="20">BEGBX</td>

<td width="163" height="20">Am. Century Intl. Bond</td>

</tr>

<td bgcolor="#f0eec5" width="105" height="20">Short Term bond</td>

30%</div>

</td>

<td bgcolor="#f0eec5" height="20">VFSTX</td>

<td bgcolor="#f0eec5" width="163" height="20">Vanguard S.T. Corp.</td>

</tr>

<td width="105" height="20">Healthcare </td>

5%</div>

</td>

<td width="163" height="20">Health Care Select SPDR</td>

</tr>

<td bgcolor="#f0eec5" width="105" height="20">High Yield Bond</td>

5%</div>

</td>

<td bgcolor="#f0eec5" height="20">VWEHX</td>

<td bgcolor="#f0eec5" width="163" height="20">Vanguard High-Yield Corp</td>

</tr>

<td width="105" height="20">Utilities</td>

5%</div>

</td>

<td height="20">BULIX</td>

<td width="163" height="20">Am. Century Utility In.</td>

</tr>

<td bgcolor="#f0eec5" width="105" height="20">Larger Cap Value</td>

10%</div>

</td>

<td bgcolor="#f0eec5" height="20">VDIGX</td>

<td bgcolor="#f0eec5" width="163" height="20">Vanguard Dividend Growth</td>

</tr>

<td width="105" height="20">Intl. Stock</td>

5%</div>

</td>

<td height="20">SINGX</td>

<td width="163" height="20">SSgA Intl. Growth Op.</td>

</tr>

<td bgcolor="#f0eec5" width="105" height="20">Balanced</td>

<td bgcolor="#f0eec5" height="20">BRBPX</td>

<td bgcolor="#f0eec5" width="163" height="20">Bridgeway Balanced Fund</td>

</tr>

</table>

Why: These are relatively minor changes and we're keeping our broad bond/stock allocations in our Conservative portfolio to 70% bond and 30% stock (adjusting for a balanced fund).

We want even less exposure to foreign bonds as we feel the dollar's fall is largely over. We have made a good deal on foreign bond funds, riding them all the way up as the dollar has fallen near 50% against European currencies.

Large cap stocks are slightly more attractive to us than hot smaller cap stocks globally, so we are selling our position in Forward International Small Companies and replacing it with a fund that invests in mega-cap foreign stocks (SSgA International Opportunities). We like healthcare funds given the long run of underperformance and are adding a stake here.

Redemption fee information: We have owned the funds we're selling for over twelve months so subscribers who purchased these holdings when at the same time we did are exempt from short term capital gains or redemption fees. Newer subscribers, however, may have bought at a later date.

Three of the four funds we are selling do not have fund imposed redemption fees.

Forward International Small Companies (PISRX) recently imposed a new redemption fee. Subscribers who bought the fund before April 5th, 2005 face a 2% redemption fee if they sell within 60 days of buying. If you bought after this date you face a 2% fee if you sell within 180 days of purchase.

Please check with your broker if you do not buy directly from the funds to see if you are beyond the time period of any broker-imposed short term penalty fees before selling.

<a href="https://maxadvisor.com/newsletter/mpagchanges.php">Pending trades!</a> Please see this portfolio's 'Changes' page for important trade information.

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