Understanding Risk

In simple terms, risk tolerance is your attitude toward taking financial risk and your ability to withstand losses. Aggressive investors have a higher risk threshold than conservative investors, but investors always face some type of risk regardless of where they put their money.

If your put your money into stocks, you face market risk—the risk that the market could go down. But if you put your money into a “safer”, low-yielding investment, such as a government bond, you face inflation risk—the risk that inflation could diminish your real returns—and possibly interest rate risk—which is the risk that market interest rates could rise causing the value of your lower-yielding bond to drop.

The best way to approach risk is to focus on the long-term and to work with your financial advisor to build a diversified portfolio that includes a broad range of investments.

Is Your Insurance Adequate?

No financial portfolio is complete without adequate insurance coverage to protect you and your loved ones. Without proper life, health, disability, and property and casualty insurance, unforeseen adversities could decimate your investment portfolio and sidetrack your retirement plan.

Determining the appropriate level of insurance coverage depends on a variety of factors, such as your current expenses, your family situation, and your income. Health care and property insurance polices are important for everyone, and disability insurance is particularly crucial for self-employed individuals.

For life insurance, the size of your policy depends in large part on the size and the needs of your family. But before you buy, make sure you understand the costs and terms and try to compare several policies. You may wish to talk with your financial advisor about your insurance needs to make sure that you and your loved ones are adequately covered.

The Sandwich Generation
Presented by Kim Tricas

Being in the Sandwich Generation means you’re a caretaker for a whole lot of people! Attend this free seminar and learn how you can plan for your own retirement while caring for your aging parents and growing children. 

September 19, 2006 @ 6:30 PM
Holiday Inn
14201 Nicollet Avenue South
Burnsville, MN 55337

September 20, 2006 @ 6:30 PM
Wealth Enhancement Group/Boy Scout Building
810 Madison Avenue
Mankato, MN 56001

September 21, 2006 @ 6:30 PM
Wildwood Lodge
8511 Hudson Boulevard
Lake Elmo, MN 55042

September 21, 2006 @ 6:30 PM
St. Cloud Country Club
301 Montrose Road
St. Cloud, MN 56301

September 26, 2006 @ 6:30 PM
Wealth Enhancement Group
1905 East Wayzata Boulevard
(first floor seminar room)
Wayzata, MN 55391

September 27, 2006 @ 6:30 PM
Somerby Golf Club
975 Somerby Parkway
Byron, MN 55920

September 28, 2006 @ 6:30 PM
Kozlaks
4785 Hodgson Road
Shoreview, MN 55126

NEW Online Seminar

September 27, 2006 @ 6:30 PM
Register by going to the wealthenhancement.com home page now!

W.A.I.T. Strategy™
Presented by Dave Hess

Free Appreciated Property Workshop! Attend this free seminar and learn how you can sell your appreciated taxes over a lifetime-eliminate probate, estate taxes, retire with a lifetime of income…and creditor-proof the process.  

September 20, 2006 @ 2:00 & 6:30 PM
Wealth Enhancement Group
(first floor seminar room)
1905 East Wayzata Boulevard
Wayzata, MN 55391

September 21, 2006 @ 2:00 & 6:30 PM
Wealth Enhancement Group
(first floor seminar room)
1905 East Wayzata Boulevard
Wayzata, MN 55391

To register for any of these seminars, please call
1-800-487-1952 or visit wealthenhancement.com

A Simple Approach to Investment Success

There’s a very simple approach to long-term investing that can help bring you more consistant performance with very little effort. Known as dollar cost averaging, this time-tested investment system helps you even out price fluctuations and reduce the average cost of investing.

With dollar cost averaging, you invest a set amount of money each month or each year—such as $1,000 a month—rather than buying a set number of shares. The strategy relies on the volatility of the market to ensure that you buy more shares when the market is down and fewer shares when the market is up. For instance, if the market is up and shares are trading at $50, your $1,000 contribution would buy 20 shares, but if the market drops, shares drop to $40, that same $1,000 would buy 25 shares. So you buy more shares when the market is at the bottom and fewer when it’s at the top. Dollar cost averaging does not assure a profit or protect against a loss in a declining market.

Your financial advisor can help you set up a dollar cost averaging plan for a portion of your portfolio.

When I talk about “wealth,” I am not referring to money per se. In my view, wealth refers to the richness of life. My philosophy is that wealth can mean many things: a wealth of wisdom, happiness, love, experience. We all know that money is not a measure of any of these qualities of life. But money can be used in the pursuit or expression of these things. No two people have the same view of money and wealth. Each person establishes individual goals and works toward them in his or her own way. Likewise, each person will use money differently as a tool. The goal is not money but living a better life – however you define it.

Wealth Enhancement Group has helped thousands of Minnesotans plan for a comfortable retirement. With a team of experts well-versed in financial planning, investment management, and maximizing tax strategies, Wealth Enhancement Group will help you achieve the life you imagined.  

CLICK HERE to get your free copy of our 24-page retirement booklet, “Planning for Retirement – Strategies for Your Life, Your Finances, and Your Future”. In this booklet, you’ll learn more about strategies and options for your future.