The year 2003 has been a good year for many investors. The equities market indices like the Dow and the S & P 500 have shown significant gains. Be sure to do some tax planning before year-end. Payroll deductions for retirement plans must be implemented in the calendar year to take advantage of the tax deferral in that current year. Here is a schedule of deferral limits. Taxpayers 50 years of age or older in the current calendar year have additional deferral amounts available to them.

The Roth IRA is a great way to save and never pay taxes on the growth. The Contribution Roth can function as a glorified savings account. It is designed to grow tax-free for retirement. Interestingly, the original contributions can be withdrawn at any time and for any reason with no taxes and no penalties by the IRS. Talk to us about a Roth IRA account.

Remember – Year-end tax planning includes making charitable donations. These need to be received by the charity by December 31 for a current year deduction. Gifts of appreciated assets such as stock or mutual funds, or depreciated assets such as cars and equipment can provide you with tax savings and personal gratification. Talk to your tax preparer about how this fits your situation.

Don’t forget to do a year-end personal balance sheet. List all your investments and capital assets. Categorize them by legal title: 401-K, 403-b, Roth IRA, JTWROS, etc. Note where they are invested. Estimate personal property and residence. Add these up. Then list all debt including mortgage, credit cards balances, car loans, etc. Subtract the debt from the total assets. That is your personal net worth. This exercise helps you to keep track of all your assets, your debt and to monitor your net worth. It is invaluable for heirs to know what you have and where it is located. Call us; we can often assist in doing a personal balance sheet.

Grateful for the year past and anticipating a great New Year,

PS – Thank you for being some of the most wonderful people in the world. Your partnership is highly valued. May the New Year find you healthy, happy and fulfilled.

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3rd Quarter, 2003

I will touch base on three items in this newsletter.

One—The good news is that at this writing the stock market is up. It has been about three years since there has been a market rally of any significance. Nick Murray, an investment author and syndicated columnist, has reminded us “Bear markets are always temporary. The market trend is always upward.” The 2nd and 3rd quarters of 2003 have been a good time to be in the market. My caution is - do not expect every quarter to be like the 2nd quarter of 2003! I am cautiously concerned about the direction of interest rates. This adversely affects the values of longer-term bonds and bond mutual funds. As interest rates rise the value of bonds generally goes down. The alternative investments continue to provide strong income payments. We would like to visit with you more about this.

Two—Tax rates have gone down for certain investments. The change is two-fold. First, the tax rates were lowered for dividends and net capital gains. People in the 10% and 15% ordinary tax bracket have their 1099-DIV rate reduced to 5%. All other higher tax brackets have their dividend and net capital gains rate brought down to 15%. (Source NPI, AIG.) Second, the dividend and capital gains rates have been brought together. The new, lower rates no longer favor capital gains over dividends. This is huge! It opens another avenue for personal investing. The tax curtain between dividends and capital gains is removed. The government has leveled the playing field between dividends and capital gains. Interest income is now decidedly at a disadvantage for taxes. The results will be seen in your personal savings and investment portfolio. Call - we can discuss how this affects you.

Three--Dale, Jason and Sam have been to several conferences, seminars and workshops to stay on the leading edge of the financial, investment and employee benefit field. This ongoing educational updating is part of our commitment to bring you the very best service and support. On a personal note, we’d like to announce Jason’s wedding, September 27, 2003 to a marvelous young lady named Kris Kraakevik. They met at Calvary Church in Roseville a year ago and they are making their wedding commitment to each other at Calvary. Kris is a registered nurse working at one of our local hospitals. We are delighted to welcome Kris into our family. A portion of our service is to know your needs and allow you to know us. We do care about you. Our entire staff is focused on you, our client. Your patronage is highly valued. Our service is built around integrity, competency and excellence.

Thank you kindly,

P.S. Our deepest thanks for telling your colleagues and relatives about us. Your confidence in us is treasured. Your actions of affirmation are greatly appreciated.

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2nd Quarter – 2003

“If you want a job done right, do it yourself.” How often have we heard that cliché? “Do it yourself.” Have you applied that saying to your financial future? …to your retirement plans? With government cut backs reaching major proportions, you need to have your own plan for retirement. Do not count on the government. We can help you plan for the future. We will work with you to chart a financial course for you and for your loved ones.

FYI: We provide a wide array of products and services to meet your needs.

• Investments – Through Sentra Securities Corporation we offer a wide assortment of investment choices. Stocks, bonds, REITs, UITs, LPs, VAs and mutual funds – the list is long. Suffice it to say we want our recommendations to be tailored to your needs, comfort level and to your objectives.
• Group Insurance – We specialize in providing group coverage for as few as two employees, including dental, disability, life and supplemental coverages.
• Individual Health Plans – We offer short term medical for those who are between plans, such as college graduates and persons in job transition. Others need a Medicare supplement to fill the gaps left by Medicare Part A and B. Regular deductible plans are available for those without a larger group plan.
• Other Insurances – Life, long term disability, long term care and other insurance needs are evaluated and provided. Remember, our goal is to meet your needs.
• Planning – We guide you in many areas of planning: retirement, estate, inheritance, college funding, budget, tax, intergenerational considerations, investment* and asset allocation planning* (to name a few).

I want you to be aware of the depth of services and broad array of products that we bring to the table. Like the sign I once saw in a hardware store: “If you don’t see what you want – ASK. We probably have it here!”

The stock market is showing good strength this first half of the year. Our “lazy calf” bull market seems to be standing up now. There are bound to be some bumps along the way. Do not be discouraged if the market takes a periodic dip. Be sure to call us if you have questions. We are here to serve your needs.

Have a very special summer!

P. S. For those who are in job transition or have friends who are between jobs, I keep a file of resumes available to share with those employers who may have openings. We handle pension and 401K rollover needs. Your sending those friends to us can really be a help and encouragement for them.

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1st Quarter, 2003

Let me share two words that sound the same and now influence my long-term perspective: Colombia – Columbia. Earlier this year we spent two weeks with our daughter Amy. She is a missionary at an orphanage in inner city Bogota, Colombia. Life has a different perspective when surrounded by 97 children on a 24/7 schedule. While we were in Colombia the space shuttle Columbia tragedy occurred. For me, these put day to day life into perspective. Colombia and Columbia – we do well to reflect on the stories behind these similar words.

One year ago the 2002 Winter Olympics were ending. We were in Salt Lake City for the full three weeks. Our son, Jason, competed in the 10,000-meter speed skating event, broke his United States record and finished in 12th place. His U.S. record still stands! During 2002 Jason’s perspective changed from competition to client services. He retired from World Cup competition and passed his investment license tests. Between speaking engagements, Jason is full time at Focal Point. Sam, Phyllis, Joan and I proudly welcome Jason to our office.

Perspective is important in investing. For example, October 9, 2002 was the S&P 500 low point for the year - 776.76. Now it is well above 800. Perspective says the bear market ended October 9, 2002. We err to expect a “raging bull” market in its place. What we seem to have is a “lazy calf” market instead. Keeping a proper perspective is crucial going forward.

Being diversified is important in the perspective of today’s stock market. We work diligently to provide you a broad array of investment choices suited to your situation. Many of the stock market alternatives provide a needed reprieve from the “lazy calf” market.

From the tax perspective:

• The deferral limits for most pensions and retirement plans have gone up this year. Call us for more details. Ask us about your personal deferral limits.
• Roth and regular IRA’s can be funded until April 15th for the 2002 tax year. Investments into these accounts can also be made for the 2003 tax year. Ask us which is best for your situation.
• We provide a number of unique tax saving services. Examples are 1035 exchanges for insurance and annuity plans, 1031 exchanges for appreciated property, tax credit investments, tax deferred pension plans and tax-free 529 education funding plans. Ask us about how we can assist with your solutions.
• Our group employee benefits are designed with your tax picture in mind. We provide group health, dental, disability and life insurance and pension/retirement plan services. Ask us about our group benefits services.

From our perspective, we are honored to be the people on whom you call for solutions to a wide range of situations. Do not hesitate to ask. You are welcome to have friends, family and colleagues ask us when they face unsettling situations. Our direct number is (651) 426-7375 or (800) 426-7373. On behalf of our entire staff we thank you for trusting us with your investments and benefits.

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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.

We do not endorse any business or product you may find as a result of these links. The links were chosen as a sample of what the Internet has to offer. We caution you: do not enter into any agreement or purchase anything via the Internet until you and your advisors are satisfied that you are getting what you are paying for.