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Show Volume IX Issue II THE OGDEN VALLEY NEWS Page 11 November 1, 2003 A Guide to Organizing Your Financial Documents Here’s a handy reference for determining how long to keep various financial documents: Two years Bank reconciliations Duplicate deposit slips Routine correspondence Three years (minimum) Appliance warranties (except those that are longer) New and used car warranties Appliance purchase agreements Insurance policies (expired) Five years Sales commission reports Employee business expenses Seven years Federal tax returns State and local tax returns Items to support tax returns Employee contracts Options records (expired) W-2 forms Mortgage statements Leases (expired) Personal bank statements Personal canceled checks relating to taxes, purchases or special contracts Property damage reports Accident records Accident release forms Permanent Deeds and titles Divorce papers Mortgage documents Marital agreements Social Security audits Parents’ wills Military service records Civil service records Adoption papers Patent records, trademarks Stock and bond certificates Annual financial statements Accountant audit reports Depreciation schedules Current contracts and leases Property records Note: This information has been provided to you courtesy of Chris Wright, Registered Representative, Securian Financial Services, Inc., member NASDA/SIPC 2001-1126-850011 “Trunk or Treating” It’s no “trick” to “treat” the children with love! Talking the Talk: Learning The Language of Mutual Fund Investing It sounds like an overheated discussion in the hat department: “Is that a small-cap value?” “No, it’s a mid-cap blend.” “What I really need is a large-cap growth.” But the caps in this conversation aren’t worn on heads, and the term “blend” doesn’t refer to the combination of cotton and polyester. No, this is the language of mutual fund investing, a distinctive dialect where a threeword description can summarize a fund’s approach to investing. By learning the lingo, investors can get a better understanding of the funds they are investing in. Even more important, they can develop a keener understanding of how different types of funds can work together to create a well-diversified portfolio. The three-word characterizations (smallcap value, mid-cap blend, etc.) so common in the world of mutual funds give investors two key pieces of information: The fund’s investment philosophy. Many funds take either a “value” or “growth” approach to investing, or adopt a “blend” of both. The size of the companies in the fund’s portfolio. The term “cap” is short for market capitalization, a measure of size based on the market value of a company’s outstanding shares of stock. A Philosophical Difference The terms “value” and “growth” refer to distinct approaches to investing. Value investors look for deals, stocks that are under priced for one reason or another. They’re like the shopper who scours the dis- count racks in hopes of coming across designer clothing. Growth investors, on the other hand, look for companies that are showing significant growth opportunities for the future. Because growth stocks historically have demonstrated the potential for positive performance, they tend to be higher priced than value stocks. There are funds that have adopted a neutral stance, buying value or growth stocks as they see fit. These funds are typically labeled as “blends.” And The Winner Is . . . So who’s right? Fortunately for individual investors, both are. At times, growth stocks tend to outperform value stocks. At other times, value stocks come out ahead. For fund investors, it doesn’t come down to swearing allegiance to either the growth or value school. A well-thought out portfolio based on asset allocation principles will include both value and growth stocks as a way of diversifying investments. By understanding the terminology, investors can make sure that they’ve covered their bases with the funds they choose. Taking Size of Your Investments Mutual funds also are differentiated by the size of the companies they invest in: small, medium, and large. Where a company fits depends on its market “cap,” short for capitalization. To arrive at a company’s market capitalization, multiply the number of shares of common stock by the stock’s market price. For example, a company that has issued one million shares currently valued at $8 each would have a market capitalization of $8 million. Small companies are generally defined as firms with market capitalization of $300 million to $1 billion. Medium companies, such as Woolworth’s and Hormel Foods, fall into the $1 billion to $5 billion range. Large companies—the Coca-Colas and Microsofts of the world—have market capitalizations of $5 billion and up. Companies of different sizes perform differently in the economy’s various stages. Large company stocks typically don’t fall as far in a down market. Small company stocks typically roar ahead at the beginning of a recovery. For the smart investor, the trick is not to try to choose the correct company size. It’s to make sure the portfolio includes funds that invest in companies of varying sizes. In the case of mutual fund investing, it’s not a matter of one-size fits all, but of all sizes fitting one. The one in this case being you, the individual investor. By understanding some of the key terms of mutual fund investing, investors increase the odds of a good fit between their needs and the funds they choose. Investments in securities will fluctuate and when redeemed may be worth more or less than when originally invested. Investments in smaller company and microcap stocks generally carry a higher level of volatility and risk over the short term. Note: This information has been provided to you courtesy of Chris Wright, Registered Representative, Securian Financial Services, Inc., member NASDA/SIPC2001-1126-850034 DOFU 1201 * $1,000 CASH Your Home Sold In 90 Days, Or We Pay You $1000! GUARANTEED ays d Sol 7D in 1 d Sol Call For Details! Eden ays d Sol Eden d Sol $222,000 d Sol Huntsville d 6 in 5 $295,000 ays ys Da d Sol $205,000 Sol $172,000 0 in 5 Eden ays D in 6 ys Da Eden $252,000 D in 4 3 in 6 Eden $175,000 ys Da d Sol Eden $221,000 1D in 9 12 in 1 ys Da Eden $535,000 EDEN OFFICE ONLY Date: On Halloween Place: LDS Church parking lot across from Snowcrest Junior High Time: 6 p.m. 2580 N. Hwy 162, Eden 801-745-8800 Children: Come to the church all dressed and ready to receive some serious treats. *Certain Restrictions Apply. Parents: Come with your Halloween candy to pass out to the children. It will be thrilling as much as it will be chilling so come prepared. We are dieing to see you there!! Shauna Jensen Greg Jensen Associate Broker Sales Associate 791-2114 745-2456 Pete Rasmussen Duane Meacham Sales Associate Associate Broker 791-3814 860-4461 Jim & Linda Simmons Sales Associates 745-6301 / 791-2947 Dick Payne Broker 940-4040 |