FOCAL POINTS FOR
BUSY PEOPLE

Steady performance is another issue we take into consideration. Let's illustrate with two mutual funds that look very similar on the surface. Fund A goes up 10% per year for three years. Fund B goes up 15% one year, down 5% the next and up 10% the third year. From the surface they both look the same, most would say they are averaging 10% in Fund A and Fund B.

	Fund A $1,000.00	Fund B $1,000.00
Year One	+ 10% = $1,100.00	+15% = $1,150.00
Year Two	+ 10% = $1,210.00	- 5% = $1,092.50
Year Three	+10% = $1,331.00	+10% = $1,201.75

Fund A is $129.25 ahead of Fund B. That is almost a 13% gain in the original investment over three years. One year performance is often a fleeting number. Steady performance designed to suit your needs is the stronger alternative.

One more hot topic - - Health Insurance. We are seeing tremendous upward pressure on rates for the upcoming year. Virtually all of the carriers are projecting double digit increases in premiums for this next year. The costs of new medicines, improved procedures and new equipment combined with an older population (we are all a year older) force costs to escalate.

Let us stay in touch. You are encouraged to call us with questions. Your referral of others is deeply appreciated. Have a wonderful autumn season.

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This has been a great 1998. The market has reinforced what I said in the Fall Î998 newsletter. I have been to several conferences where on-going education and learning are enhanced. At one conference, market guru Nick Murray made these points:

• Value and price tend to have an inverse relationship. We are in a "great value rally". This is an opportune time to buy.
• Sometimes we miss the obvious. For example, 100% of all serious ski accidents happen on the skier's last run of the day. (Think about it!)  It should also be obvious - returns that outperform inflation come from equities. The catch is volatility.
• Long term stock market advances are permanent, declines are always temporary. August - October is an example of a short-lived decline.
• Fear is the major criteria that keeps people from making money. The news media sells fear. They use the proverbial "chicken little" story (the sky is falling) to sell their stories.

If you have questions about these, let's visit together. I want to make sure you don't outlive your income. My goal is to keep you as successful as possible and to provide you the freedom to pursue your dreams. I want to be the only financial advisor you will ever need. I employ a great staff to be sure your needs are met.

You are wonderful people to work with. I appreciate the opportunity of serving you. May your 1999 be filled with dreams coming true, blessings uncounted and riches untold.

Warmly,

Dale W. Hedstrand
DWH:gr

P.S. Don't forget to consider a Contribution Roth IRA. These can be funded up until April 15, 1999 for the 1998 contribution. Remember, this after-tax contribution IRA will grow and there will be no taxes on the appreciated value. Be encouraged to mention this to friends and family. I would be glad to assist them with their Roth IRA investment.

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NOTE: Dale Hedstrand is a registered principal associated with AIG Financial Advisors, Inc., Member NASD/SIPC. Before proceeding further, please be advised that Dale Hedstrand is licensed to discuss with or offer investment and financial services and products only to residents of AL, AZ, CA, FL, ID, MD, MI, MN, MO, NH, NM, ND, OH, OK, OR, SC, SD, TX, UT, VA, WA, WI, WY. Securities related services may not be provided to individuals residing in any state not listed above. The information offered is for informative purposes only. None of this information is to be construed as an offer to buy or sell securities referred to within or otherwise. Neither Dale Hedstrand nor AIG Financial Advisors, Inc makes any guarantee as to the accuracy or completeness of this information.

This information has been prepared from sources and data believed to be reliable but is not guaranteed by NASD/SIPC or AIG Financial Advisors, Inc., nor is any representation made herein as to its accuracy or completeness. This listing is provided for information purposes only and is not to be construed as an offer to buy or sell any securities mentioned herein.

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