Focal Point Financial: Newsletter

4th Quarter, 2007
Focal Points for Busy People

The year 2007 is fast disappearing and 2008 is dawning. Some of the comments periodically heard are “I didn’t know you did that!” or “I never thought of you for this!” With that thought in mind, let me outline a brief glimpse of our broad array of choices and solutions for numerous real-life issues. Our wide range of investment vehicles includes: stocks, bonds, mutual funds, REITs, EFTs, variable annuities, variable and universal life insurance, direct participation programs, private placements and 1031 exchanges. Privately managed accounts, fee-based planning and asset management account advisory services are available. Investments and advisory services are offered through AIG Financial Advisors, Inc., a registered Broker/Dealer, and member of FINRA and SIPC.

On the insurance side, we are a General Agent for numerous companies and products. The largest group here is our health insurance. Our experienced staff can guide retirees in selecting Medicare Supplements and Part D prescription drug plans. We can offer short-term medical coverage for such needs as being between jobs, after graduation or starting a business. Our business benefits group provides health, dental, life, long and short-term disability coverage for businesses of two to over two hundred employees. Added to this is our individual health, life and disability coverage. Without boring you with too much detail, we do have HSA’s and HRA’s, Flex Plans / Section 125 Plans and an HR Services package for businesses.

How does all of this fit together? We focus on education, planning and finding solutions to your real-life issues. You can recommend us to colleagues with confidence. We feel that people in transition can greatly benefit from our help - when moving, changing jobs, job promotions, marriage, divorce, childbirth, death, inheritance or dissatisfaction with their current situation. Businesses rely on us to recommend, implement, change or manage their retirement and pension programs. We provide comprehensive benefit services to new companies and to long-established businesses. You can be our advocate knowing great care is being taken.

The quarterly newsletter for the first quarter of 2006 had what has become a famous letter. It contained our “Dear Henry” letter, an open letter from grandfather to grandson. Two more grandsons have since arrived. Enclosed is the “Dear Joshua and Erik” letter. We trust that this encourages you to consider life values. You may want to write your own letters to children, grandchildren, to nieces and nephews, or to your parents. Talk about values that are most important to you and why. Pass on to those closest to you the things that you cherish most deeply. Our legacy is marked by the lives we have touched and the values we leave to others.

Be blessed and be a blessing,

Dale W. Hedstrand, President
Focal Point Financial Services
Registered Representative, Branch Manager
AIG Financial Advisors, Inc.

The Focal Point Team:
Jason W. Hedstrand
Sam Rossi
Joan Spilde
Phyllis Strumpfer

4 th Quarter 2007
Dear Joshua and Erik,

Welcome, my grandchildren, into this marvelous thing we call life. I am writing this letter to the two of you together as brothers. Your parents will put this in your “life notebook” for you to read many times in the years to follow. This is part of our family legacy, something to be passed down through the generations. I want you to know that you are loved, each of you. Your mother and father, grandmothers and grandfathers, aunts and uncles and numerous others love you. It’s not that we have to love you. It is that we choose to love you. God loves you too. He chooses to love you! There will come moments in time and times in life when you will need to be reminded of this love. Fasten this in your mind early in life. Let it become a strong anchor for later. You are chosen to be loved.

Know that each of you is unique. Even though I am writing this letter to the two of you, I know that you are Joshua and Erik. You are individuals. Now, I’m asking for your forgiveness in advance. We really don’t intend on comparing you with each other, or with your older brother Henry. If we inadvertently say, “Why can’t you be more like…?” Or “Your brother was in … or did…” please forgive us. Your siblings are our points of reference. While you may have similarities, we celebrate who you are as individuals. We pray the Lord will lead each of you in your own particular way. Be assured that you are special to God and to us.

As younger siblings, there may be a temptation to “ride the coat-tails of an older brother.” Do not be tempted to slack off or take life too casually. Learn to be competitive in a healthy sense. Scriptures say, “Do everything heartily as unto the Lord.” Tackle the tough assignments, train for the long races, and build some focus in your life. Strive for excellence without becoming a perfectionist. Be a good steward of your own efforts.

One more focal point to highlight that I mentioned earlier. Be forgiving. Be forgiving of yourself and forgiving of others. Of yourself – try not to harbor negative feedback on your shortfalls. These will erode your confidence in life. Of others – be gracious, understanding and magnanimous in your relationships. Life is too short to hold a grudge against someone. This will be a challenge for each of you. Remembering the grace of God that is extended to us will help. As your Grandpa is known to say, “I am better than I deserve!” There is more to that saying than meets the eye.

Joshua and Erik, there is lots more that I could write. It is better to get one page completed than the book never written. I am immensely proud of your mother and father. I am so proud of my grandchildren (does it show?). Thank you for allowing me to share your letter with others.

Love,

Grandfather

Do you remember…

When you had your first roller coaster ride? Going up, up, up and then swoosh! The fall! Only to be propelled up again …. For some it is the thrill of the moment. For others it is classified as a nauseating “near-death experience”.

There are times when the stock markets feel like that first roller coaster ride. The markets always go up and down – daily. It is a very rare day when the markets stay flat. History shows that markets eventually rebound. Maintaining a long-term perspective in challenging economic times isn’t easy, but it can be rewarding. Historically, the “ups” of the market have generally outweighed the “downs”. The result is long-term growth opportunities. What should you do?

• Don’t Panic!

Historically, markets may react negatively to shocking events or unfavorable news. Markets have regained their value over time. Long-term investors who have stayed invested have been rewarded for their patience. There are no guarantees on the future. It is natural to “follow the herd”, or what

I call “follow the heard”, in a declining market. The proverb is to “buy low” and not the reverse, “selling low”. Emotions have a significant influence on investing.

• Stick to a Strategy

Remember your long-term goals. Review your investment objectives. Recall your strategy. Unless circumstances change and your goals shift, we say “Stick to the strategy”.

• Try Not to Predict the short-term Market

It is nearly impossible to predict short-term market movements. It is akin to trying to write next week’s news headlines this week. This is why we think it is a good idea to stay invested over the long term. History has shown that investors who remained invested were rewarded. We know that past performance is not a guarantee of future results.

• Reassess Your Portfolio

Often when emotions run high and markets fluctuate opportunities arise. Call our office. We are glad to discuss your portfolio. When you send a friend to us for assistance, we are glad to assess their portfolio. There are times when the reassessment is more urgent – marriage or divorce, birth of a child or death of a parent, changing jobs or retiring, planning for college or retirement, receiving an inheritance or planning for your estate, moving to a new city or starting your own company. These are examples of situations where our services are needed. You, or your associates, are welcome to give us a call and schedule a time to get together. The phone number is 651-426-7375.

2nd Quarter, 2007
Focal Points for Busy People

Many have asked about my trip to Ghana, West Africa. Coincidentally, that was the week
of the stock market drop. I’m certain that my leaving the country had nothing to do with the drop! Nor did my return influence the market’s recovery! The time in Ghana was wonderful. The 35th anniversary of the college and the program they provide is heartwarming. Thank you for asking.

One trend of our day is the proliferation of scams, schemes and fraud. Please, please, please be very careful with your account numbers, Social Security numbers and birth date (vs. birth day). There seems to be no end to the stories of new scams and schemes. Callers ask you to “verify” your Social Security number, or “confirm” your bank account number, there are numerous hoaxes to convince people to part with that vital information. Before sharing your numeric identity, ask for their phone number and offer to call them back in a week. This should lower your financial blood pressure. It is a simple way to clear those high-pressure people from your phone lines. Chances are they will not provide their real number. Scams can be so convincing. They inevitably are in a hurry: “give us your bank account number NOW!” That “hurry up and tell us now” attitude is another clue that they might be part of a scam.

Always shred old financial, bank and credit card documents. If possible, burn them. If you ever feel that an account you have with us has been compromised, call us right away. The situation may be lost mail while on vacation or domestic situations like upset adult children, ex-spouses or domestic unrest. We make our services available to you.

I want you to meet the two newest members of our team. Joseph Beste is a registered assistant with us serving clients in western Minnesota. Joe has a tremendous history of service over many years. Bradford Lee is a registered representative coming to us from
a national brokerage firm. He has a strong background in both human resources and financial planning. Brad fits well with our dual emphasis on corporate employee benefits and household financial improvements. Welcome to Joe and Brad. Don’t hesitate to mention either one of these men to your associates. We appreciate your promotion of our services.

With special regards,

2006 was an amazing year for us. Our second grandson, Joshua, was born on July 5 and my daughter was home from Bogota, Colombia for the Christmas holidays. On June 1 in Phoenix

I was given a very special honor: the Lifetime Achievement Award. A video of the presentation can be viewed on our web site at www.focalpointfinancial.com. Go to the “Friends” page and click on the video.

I’ve divided my comments into opportunities still available for 2006 and plans to initiate now for 2007.

FYI, at the end of February I plan to be in Ghana in West Africa for nine days. For the past 13 years I have been an honorary board member at a special college. I am going to participate in their 35th anniversary festivities.

My very best to each of you for this coming New Year. Your confidence in our services is truly appreciated. Your advocating our service to those in your circle of influence means a great deal to us.

We thank you