Because investments don't all rise and fall in sync, you can squeeze out higher returns for the same risk if you wisely diversify your portfolio's investments. The advantage of portfolio diversification is this: When one asset class is performing poorly, another is performing well, counter-balancing each other. A portfolio with both "risky" and "conservative" investments can have the effect of lowering that portfolio's overall risk while enhancing its returns. For example: based on returns over the past seven decades, a portfolio that is 20% stocks and 80% bonds has lower risk than an all-bond portfolio, but the expected return is almost two percentage points higher a year. (Source: Ibbotson Associates)

Your investment portfolio needs to be constructed to match your individual needs, your time horizon for investing, and your tolerance for risk. We will review your investment portfolio with you, determine your tolerance for risk, and suggest an investment portfolio to achieve your goals and objectives.

Because we offer fee-choice financial planning services, you can choose whether your suggested investment portfolio is comprised of individual stocks and bonds, no-load mutual funds, or loaded mutual funds.

Don't ignore the impact of taxes on your investments. While taxes should not drive your investment strategy, understanding how taxes affect your earnings will help you minimize taxes and maximize your return. Consider these items:

Capital gains carry a favored tax status. Consider putting more dollars in investments that return capital gains.

You can take an annual deduction of up to $3,000 of capital losses in excess of capital gains. Consider balancing your winners and losers to maximize this deduction each year.

Investments which produce high taxable annual income can be given to family members who are in lower tax brackets, thereby saving taxes for the overall family group.

Depending on your tax bracket, you may benefit from investing in municipal bonds. The level of these investments may need to be adjusted as your total income picture changes.

Check out these links.

We do not endorse any products, services, or businesses you may find by following these links. Do not enter into any transaction until you and your advisors are satisfied that you are getting what you are paying for.

U.S. Securities and Exchange Commission
USA Today - Top Money News
Federal Reserve Bank of New York - Interest rates on treasury bills and much more!
Stock Quotes - Reuter's
Stockmaster - free stock and funds quotes
The American Stock Exchange
NASDAQ Exchange - stock quotes
New York Stock Exchange
S.E.C. - Edgar Database
PAWWS Financial Network
American Association of Individual Investors (AAII)
Lists of Financial Sites - numerous financial helpers
Daily Stocks - Get quotes, charts, and SEC filings
The Financial Center - Bookstore for investors, chat rooms, newsdesk
Fund Alarm - Changes in fund managers, buying and selling of fund information
InfoBeat - Have email notices sent to you about your stocks
Securities and Exchange Commission - Investor assistance, fraud cases, SEC filings and small business information
Stockfind - Financial news by industry and an IPO corner
Wall Street Directory - Shopping mall for software, books and magazines about investing

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2980 E. Fort Lowell Road
Tucson, AZ 85716-1518
e-mail: personett@stevecpa.com