How much apprehension did you experience this fall? Were you apprehensive about the stock market? The economy? National and local elections? Your job or your employer? Let’s address these issues.

The Stock Market
The stock market started moving up the week before the elections. We are seeing continued strength in the equities market. Remember that the daily market goes up over 66% of the time and down less than 34% of the time.*

The Economy
Will we have another raging bull market like we had in the late 1990’s? Probably not. We will most likely continue the “lazy calf” market that started in October, 2002. I fully expect to see several years of high single-digit or low double-digit returns. There is a statistical phenomenon where the market “draws to the mean”: the long-term 40 – 50 – 60 year averages tend to prove true.

The Elections
Reflecting on the elections, I marvel at how wonderful our nation really is. I marvel that national elections can be close and the winners are diplomatic. I marvel that those who lose are gracious.

I marvel that the winners do not exercise revenge and those who lost do not fear retribution.

As both President Bush and Senator Kerry said: “God bless America”.

Career Transitions
If you know of others who are changing jobs, retiring or starting their own business, we can help them. We can assist in evaluating and rolling over their pension plan. We keep an active file of resumes for those who are looking for positions and for those who are hiring. We provide value-added consulting on business development for our clients at no charge. Planning income in retirement, whether needed now or in the future, is a service we can offer.

I am thankful for the past and optimistic about the future. Your partnership with us is deeply appreciated. Your mentioning our services to others means a lot to us. May your Holiday Season be blessed.

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3rd Quarter, 2004

The news seems dominated by three events: Hurricanes Charley and Frances, Summer Olympics in Greece and the political bantering leading up to the Fall elections. In my opinion, only one of the three will have much influence on the current stock market. Guess which one? The Fall elections? Probably not - regardless of who wins. Politicians seem to have very little influence over the current business scene. They don’t even take office until later this winter! The Greek Summer Olympics? The athletes’ stories, efforts and performances are certainly inspiring and motivational. Watching the events and replays ad infinitum can be captivating but does little for our economy. Hurricanes Charley and Frances? The tragedy to people – the loss of life and property – is not to be taken lightly. Surprisingly, this is the newsworthy event that can influence the current economy and stock market! Why? Because major calamities have a way of spurring economic spending. Billions will have to be spent rebuilding portions of Florida and the Southeast. This will pump more dollars into circulation. Dollars spent on lumber, sheet rock, roofing, nails, carpeting and the labor force to clean up, rebuild and install helps the economy.

What does this mean for the average person? Now is a good time to be selectively investing. Barring unusual events, I fully expect the stock market to edge up later this Fall and Winter. Gains should be modest for the year, still welcome news compared to 2001 and 2002.

Since we do both corporate benefits and individual assistance, we really appreciate those who are “advocates” for our services. We provide a broad array of insurance benefits including health, dental, life, disability, supplemental and long-term care insurances. This is in addition to investment choices such as stocks, bonds, mutual funds, variable annuities, UIT’s, REIT’s and a host of alternative investments. The structures may come as 401(A), 401(k), 403(b), 408, 457, SEP, SIMPLE, Roth, Coverdell or Single, UTMA, JTWROS, corporate or trust accounts. This simply means that we bring a lot to the table. No one provides the business development services we provide. Your advocacy is appreciated.

Warmly,

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2nd Quarter, 2004

Two serious questions for retirement planning are: “How much do I need for retirement?” and “Where is the money coming from?” Effective planning is needed! Call us for help in finding answers to these questions.

There are FIVE MISCONCEPTIONS that I’ve seen in some retirement plans.

“My Social Security will provide a base for my retirement.”
♦	Page one of your Social Security projection statement talks about the future shortfall coming in the Social Security system. SSI provides less and less for retirement. If this is your base, the base is shrinking. Best NOT to count on SSI for your retirement base.

“My mortgage will be paid up freeing cash in my retirement.”
♦	In the 15 to 30 years it takes to pay off the mortgage, property taxes will likely increase. For many, taxes may equal what they were paying in initial house payments.

“The equity in my house is a big part of my assets for retirement.”
♦	You still have to live someplace!
♦	A move to single-level, specialized housing costs money! It may take all of the equity from the old homestead to move into a retirement dwelling.
♦	That older house is going to chew up cash for needed repairs and updates.

“My family will be on their own so my living costs will be less.”
♦	Do not count on a completely empty nest during retirement! Adult children may return home, and senior parents may need care.
♦	Many want to help their grandchildren with things like college costs and other financial needs. (See us for details on how to do these.)

“My needs will be lower and less expensive in retirement.”
♦	Wrong! Travel costs go up – to visit the children and grandchildren – to take advantage of seasonal changes of climate – to enjoy travel while health allows.
♦	Health care will consume a larger portion of your budget. Medicare Parts A and B, Medicare Supplements (we can help with this) and diet supplement costs tend to increase. These are AFTER-TAX expenses from the retiree budget.
♦	Inflation has reduced purchasing power and is expected to continue in the future.

If these are a central part of your retirement plan, you are not alone. These misconceptions can lull people to inaction. Step out from the crowd; plan ahead! We are glad to visit with you or your associates about how much is needed for retirement. Call and make an appointment. Share our name with colleagues. We look forward to continuing to serve you.

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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.