What Does the Dollar Do For You?
During the past several months, the weaker value of the U.S. dollar has been headline news. But if you keep track of headlines, you might also recall that about five years ago, there was a considerable outcry about the dollar’s unprecedented strength.So which is preferable, a strong dollar or a weak one? Actually, there are benefits to both sides of a fluctuating currency. What matters most is how you react to changing conditions.Isn’t a Dollar Just a Dollar?If the dollar were the world’s lone currency, there would be no such thing as dollar weakness or strength. Here at home, the dollar serves primarily as a unit of account and a store of value. In dollar-denominated transactions, the dollar’s purchasing power is a matter of agreement between spenders and sellers.However, when two parties using different currencies want to transact business, the exchange rate between the two currencies may affect the price of the transaction.The Strengths of WeaknessA weak dollar isn’t necessarily bad news for the stock market or the economy. U.S. manufacturers tend to applaud a weaker dollar because it makes U.S. made products more competitive in foreign markets and increases foreign... Read the rest at...
http://www.joeswanson.com/content.cfm?ContentID=1390
Quote your 401k at www.quote401ks.com
Joe Swanson, CRPS
www.joeswanson.com
952.277.4259
Sunday, June 15, 2008
Wednesday, February 20, 2008
Financial Planning MN Minnesota
Test Your mutual Fund Mastery
Almost one out of two U.S. households owns at least one mutual fund. That's a long way from the 6% who owned mutual funds in 1980. How much do you know about this nearly ubiquitous investment vehicle? 1. Which of the following assets are commonly found in mutual funds?Stocks Bonds Short–term debt instruments All of the above 2. The majority of assets in mutual funds are invested in:Short–term debt Corporate bonds Stocks 3. A majority of mutual fund owners say their primary financial goal for their fund investments is saving for:Retirement A rainy day A down payment on a house 4. Mutual funds offer guaranteed returns.True False 5. Mutual funds are sold only by prospectus. What is a prospectus?A salesperson A document with information about the fund A stockbroker Source: Investment Company Institute, 2007
Answersd. All of the above. c. Stocks. a. Retirement. False. The value of mutual funds will fluctuate with market conditions. Shares, when sold, may be worth more or less than their original cost. b. A document with information about the fund. Please consider the investment objectives, risks, charges, and expenses carefully before investing. The prospectus, which contains this and other information about the investment company, can be obtained from your financial professional. Be sure to read the prospectus carefully before deciding whether to invest.
Financial Planning Minnesota
Almost one out of two U.S. households owns at least one mutual fund. That's a long way from the 6% who owned mutual funds in 1980. How much do you know about this nearly ubiquitous investment vehicle? 1. Which of the following assets are commonly found in mutual funds?Stocks Bonds Short–term debt instruments All of the above 2. The majority of assets in mutual funds are invested in:Short–term debt Corporate bonds Stocks 3. A majority of mutual fund owners say their primary financial goal for their fund investments is saving for:Retirement A rainy day A down payment on a house 4. Mutual funds offer guaranteed returns.True False 5. Mutual funds are sold only by prospectus. What is a prospectus?A salesperson A document with information about the fund A stockbroker Source: Investment Company Institute, 2007
Answersd. All of the above. c. Stocks. a. Retirement. False. The value of mutual funds will fluctuate with market conditions. Shares, when sold, may be worth more or less than their original cost. b. A document with information about the fund. Please consider the investment objectives, risks, charges, and expenses carefully before investing. The prospectus, which contains this and other information about the investment company, can be obtained from your financial professional. Be sure to read the prospectus carefully before deciding whether to invest.
Financial Planning Minnesota
Sunday, February 17, 2008
Friday, February 15, 2008
A Grand New Contribution
If you were waiting for the day when you could sock away some serious dough in your individual retirement account, the time has arrived. Beginning in 2008, workers can contribute up to $5,000 per year to an IRA, and those aged 50 and older can contribute up to $6,000.Although these new limits are the only recent development for the IRA, what’s most appealing about the IRA has passed the test of time: It still offers a tremendous opportunity for workers of all ages to use the power of tax deferral in pursuit of their long–term savings goals.Too Low for Too LongFor years, people have complained that the IRA contribution limits are too low. The IRA was created in 1974 with a $1,500 limit that was raised to $2,000 in 1982. In 2001, lawmakers answered the contribution limit complaints with a series of scheduled incremental increases that culminated in 2008. In 2009 and beyond, the IRA contribution limit will be indexed to inflation. Over a 30–year period, a worker who contributed $5,000 per year to an IRA earning a hypothetical 8% annual return could accumulate an additional $340,000, compared with a worker who contributed just $2,000 per year. This hypothetical example is used for illustrative purposes only. It does not represent any specific investment. Actual results will vary.Even if you participate in an employer–sponsored retirement plan, you may still be eligible to contribute to a deductible IRA (see table). If you have assets in a former employer’s plan, rolling them into an IRA may give you more options and greater control over your money.Contributions to a traditional IRA are tax deductible (subject to certain income limits), and any earnings in the account are not subject to income tax until withdrawn. IRA withdrawals (also called distributions) are subject to ordinary income tax. Distributions taken prior to age 59½ are subject to an additional 10% federal income tax penalty, except in cases of death, disability, or a first–time home purchase (up to a $10,000 lifetime maximum).Forty-seven million U.S. households own at least one IRA.1 Does it make sense for you to take advantage of this year’s higher contribution limits? Call us to learn more. 1) Investment Company Institute, 2006Fee-Based financial planning
More information at www.joeswanson.com
If you were waiting for the day when you could sock away some serious dough in your individual retirement account, the time has arrived. Beginning in 2008, workers can contribute up to $5,000 per year to an IRA, and those aged 50 and older can contribute up to $6,000.Although these new limits are the only recent development for the IRA, what’s most appealing about the IRA has passed the test of time: It still offers a tremendous opportunity for workers of all ages to use the power of tax deferral in pursuit of their long–term savings goals.Too Low for Too LongFor years, people have complained that the IRA contribution limits are too low. The IRA was created in 1974 with a $1,500 limit that was raised to $2,000 in 1982. In 2001, lawmakers answered the contribution limit complaints with a series of scheduled incremental increases that culminated in 2008. In 2009 and beyond, the IRA contribution limit will be indexed to inflation. Over a 30–year period, a worker who contributed $5,000 per year to an IRA earning a hypothetical 8% annual return could accumulate an additional $340,000, compared with a worker who contributed just $2,000 per year. This hypothetical example is used for illustrative purposes only. It does not represent any specific investment. Actual results will vary.Even if you participate in an employer–sponsored retirement plan, you may still be eligible to contribute to a deductible IRA (see table). If you have assets in a former employer’s plan, rolling them into an IRA may give you more options and greater control over your money.Contributions to a traditional IRA are tax deductible (subject to certain income limits), and any earnings in the account are not subject to income tax until withdrawn. IRA withdrawals (also called distributions) are subject to ordinary income tax. Distributions taken prior to age 59½ are subject to an additional 10% federal income tax penalty, except in cases of death, disability, or a first–time home purchase (up to a $10,000 lifetime maximum).Forty-seven million U.S. households own at least one IRA.1 Does it make sense for you to take advantage of this year’s higher contribution limits? Call us to learn more. 1) Investment Company Institute, 2006Fee-Based financial planning
More information at www.joeswanson.com
Wednesday, January 30, 2008
Financial Advisor Minnesota
Helping Business Owners, Individuals and Executives with Fee-Based Planning Services
Contact an Advisor today
Elite Planning Program
Our Elite clients receive the objectivity and confidence that comes with a financial planning arrangement
Our financial plans use a holistic approach to analyze your current financial situation and evaluate how it aligns with your various goals. We provide you with concise written information to provide direction towards your future. At your request, we can review your plan periodically and monitor your progress to help keep you on track.
You will receive one-on-one guidance on everything from asset allocation to estate planning to achieving your financial independence.
What is the Financial Planning Process?
Financial planning involves a series of steps to help you accomplish your financial goals. As Princor Investment Adviser Representatives, we will gather information about your concerns and current financial situation in order to learn your specific goals and objectives. We then provide you with recommendations and alternative strategies for achieving those goals.
Once you’ve decided what recommendations to follow, we can help you implement those decisions if you so choose. The last step in the financial planning process is to periodically review and, if necessary, revise the plan.
Isn’t Financial Planning Just for the Wealthy?
Financial planning isn’t about “getting wealthy.” It’s about helping you achieve your specific life goals, whatever your level of affluence. Anyone who wants to take control of their financial life, make good financial decisions and achieve financial independence can benefit from a financial plan. Years ago, the financial life of the average family was relatively uncomplicated. People worked for the came company most of their lives, lived a few years in retirement on Social Security and their pension and passed their estate on to their children. However, increased longevity, changing demographics and a more complex, dynamic financial world have changed all that.
We have found that most everyone, regardless of financial status, appreciates financial planning help in areas such as:
Asset allocation
Retirement planning
Survivor and disability income needs
College education
Exit planning for business owners
Estate planning
Personal Service:
Your relationship is with us. As your primary contact, we are the one person to call for answers, ideas and guidance with respect to your financial plan. The full support of our team is available as well. We can also work with your other professional advisors to effectively help you handle your ever-changing needs.
The relationship between you and us is intended to be long-term. You may even find your heirs will benefit from this relationship, helping them carry on your legacy.
Access to Premier National Money Managers:
We have arrangements to offer the service of premier professional money managers for your investing needs. We have a number of asset allocation programs and separately managed accounts that allow you to invest without commissions. Your fees in these programs are based on the amount of assets under management in your account (based on a percentage of the asset value).
Compensation:
As with all true financial planning relationships, our compensation is based upon an hourly or flat fee to compensate us for the time, energy and expertise we provide.
Apart from financial planning services, we may also be compensated from your introductions to others you believe may benefit from this type of relationship.
Your Relationship with Us:
Elite clients work with an Investment Adviser Representative of Princor Financial Services Corporation to receive financial planning services. Even though your financial plan contains suggestions for solutions to meet your financial goals, you are not required to transact business or purchase products with Princor to implement these suggestions. There is no obligation, either before of after receiving your plan.
Should you decide to purchase financial products, you will pay any applicable fees or commissions relating to the purchased products. Except in cases where Princor acts as investment adviser, Princor acts as a broker dealer in offering financial products to you.
_uacct = "UA-976082-1";
urchinTracker();
Calculators
Cash Flow Analysis
This Cash Flow Analysis form will help you weigh your income vs. your expenses.
Savings Accumulation
Estimate the future value of your current savings.
Net Worth
A balance sheet summarizes your assets and liabilities and reveals your net worth.
Mortgage Refinancing
Determine whether you should consider refinancing your mortgage.
More Calculators →
Newsletters
World of Opportunity
It may be tempting to think that investing at home is enough, but that kind of thinking misses opportunities that may be available through foreign investments.
Prepare to Convert
New rules make converting to a Roth IRA a viable option, and it may make sense if you expect to be in a higher tax bracket in retirement, or if you expect tax rates to be higher in the future.
Giving for the Greater Good
When you utilize a structured giving strategy, your efforts can help reap greater benefits for you, your heirs, and your favorite charity.
Check Your Credit Score
Knowing your credit score and understanding its significance are important because the number can directly affect the interest rates you pay for mortgages, car loans, and credit cards.
More Newsletters →
PLEASE NOTE: The information being provided is strictly as a courtesy. When you link to any of these web-sites provided here, you are leaving this site. Princor makes no representation as to the completeness or accuracy of information provided at these sites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising
Joe Swanson is licensed in Minnesota, Wisconsin, Oregon, and Ohio (additional states can be made available) to offer insurance products, and life insurance (including variable life), annuities (including variable annuities), securities and if applicable - investment advice. This site is not a solicitation of interest in any of these products in any other state. IMPORTANT CONSUMER INFORMATION: Joe Swanson may only transact business in a particular state after licensure or satisfying qualifications requirements of that state, or only if (s)he is excluded or exempted from the state's registration requirements. Follow-up, individualized responses to consumers in a particular state by Joe Swanson that involve either the effecting or attempting to effect transactions in securities or the rendering of personalized investment advice for compensation, as the case may be, shall not be made without first complying with the state's requirements, or pursuant to an applicable state exemption or exclusion. For information concerning the licensure status or disciplinary history of a broker-dealer, investment advisor, BD agent or IA representative or any financial institution (s)he represents, contact your state securities law administrator. Principal Life Insurance Company, Des Moines, IA 50392. Principal Life maintains certificates of authority to transact insurance in all 50 states. Its NAIC identification number is 61271.
The words Financial Planning and Financial Advisor make no claims. Please see form ADV for disclosures. 401(k) plans and quotes are intended for Minnesota only and may be administered by other vendors including Fidelity, John Hancock, Principal Life, Nationwide Bisys, American Funds and others. Wealth management services may be provided by a third party. Financial Planning and Financial Advisor are titles used by Investment Adviser Representative's of the Princor RIA.
Contact an Advisor today
Elite Planning Program
Our Elite clients receive the objectivity and confidence that comes with a financial planning arrangement
Our financial plans use a holistic approach to analyze your current financial situation and evaluate how it aligns with your various goals. We provide you with concise written information to provide direction towards your future. At your request, we can review your plan periodically and monitor your progress to help keep you on track.
You will receive one-on-one guidance on everything from asset allocation to estate planning to achieving your financial independence.
What is the Financial Planning Process?
Financial planning involves a series of steps to help you accomplish your financial goals. As Princor Investment Adviser Representatives, we will gather information about your concerns and current financial situation in order to learn your specific goals and objectives. We then provide you with recommendations and alternative strategies for achieving those goals.
Once you’ve decided what recommendations to follow, we can help you implement those decisions if you so choose. The last step in the financial planning process is to periodically review and, if necessary, revise the plan.
Isn’t Financial Planning Just for the Wealthy?
Financial planning isn’t about “getting wealthy.” It’s about helping you achieve your specific life goals, whatever your level of affluence. Anyone who wants to take control of their financial life, make good financial decisions and achieve financial independence can benefit from a financial plan. Years ago, the financial life of the average family was relatively uncomplicated. People worked for the came company most of their lives, lived a few years in retirement on Social Security and their pension and passed their estate on to their children. However, increased longevity, changing demographics and a more complex, dynamic financial world have changed all that.
We have found that most everyone, regardless of financial status, appreciates financial planning help in areas such as:
Asset allocation
Retirement planning
Survivor and disability income needs
College education
Exit planning for business owners
Estate planning
Personal Service:
Your relationship is with us. As your primary contact, we are the one person to call for answers, ideas and guidance with respect to your financial plan. The full support of our team is available as well. We can also work with your other professional advisors to effectively help you handle your ever-changing needs.
The relationship between you and us is intended to be long-term. You may even find your heirs will benefit from this relationship, helping them carry on your legacy.
Access to Premier National Money Managers:
We have arrangements to offer the service of premier professional money managers for your investing needs. We have a number of asset allocation programs and separately managed accounts that allow you to invest without commissions. Your fees in these programs are based on the amount of assets under management in your account (based on a percentage of the asset value).
Compensation:
As with all true financial planning relationships, our compensation is based upon an hourly or flat fee to compensate us for the time, energy and expertise we provide.
Apart from financial planning services, we may also be compensated from your introductions to others you believe may benefit from this type of relationship.
Your Relationship with Us:
Elite clients work with an Investment Adviser Representative of Princor Financial Services Corporation to receive financial planning services. Even though your financial plan contains suggestions for solutions to meet your financial goals, you are not required to transact business or purchase products with Princor to implement these suggestions. There is no obligation, either before of after receiving your plan.
Should you decide to purchase financial products, you will pay any applicable fees or commissions relating to the purchased products. Except in cases where Princor acts as investment adviser, Princor acts as a broker dealer in offering financial products to you.
_uacct = "UA-976082-1";
urchinTracker();
Calculators
Cash Flow Analysis
This Cash Flow Analysis form will help you weigh your income vs. your expenses.
Savings Accumulation
Estimate the future value of your current savings.
Net Worth
A balance sheet summarizes your assets and liabilities and reveals your net worth.
Mortgage Refinancing
Determine whether you should consider refinancing your mortgage.
More Calculators →
Newsletters
World of Opportunity
It may be tempting to think that investing at home is enough, but that kind of thinking misses opportunities that may be available through foreign investments.
Prepare to Convert
New rules make converting to a Roth IRA a viable option, and it may make sense if you expect to be in a higher tax bracket in retirement, or if you expect tax rates to be higher in the future.
Giving for the Greater Good
When you utilize a structured giving strategy, your efforts can help reap greater benefits for you, your heirs, and your favorite charity.
Check Your Credit Score
Knowing your credit score and understanding its significance are important because the number can directly affect the interest rates you pay for mortgages, car loans, and credit cards.
More Newsletters →
PLEASE NOTE: The information being provided is strictly as a courtesy. When you link to any of these web-sites provided here, you are leaving this site. Princor makes no representation as to the completeness or accuracy of information provided at these sites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising
Joe Swanson is licensed in Minnesota, Wisconsin, Oregon, and Ohio (additional states can be made available) to offer insurance products, and life insurance (including variable life), annuities (including variable annuities), securities and if applicable - investment advice. This site is not a solicitation of interest in any of these products in any other state. IMPORTANT CONSUMER INFORMATION: Joe Swanson may only transact business in a particular state after licensure or satisfying qualifications requirements of that state, or only if (s)he is excluded or exempted from the state's registration requirements. Follow-up, individualized responses to consumers in a particular state by Joe Swanson that involve either the effecting or attempting to effect transactions in securities or the rendering of personalized investment advice for compensation, as the case may be, shall not be made without first complying with the state's requirements, or pursuant to an applicable state exemption or exclusion. For information concerning the licensure status or disciplinary history of a broker-dealer, investment advisor, BD agent or IA representative or any financial institution (s)he represents, contact your state securities law administrator. Principal Life Insurance Company, Des Moines, IA 50392. Principal Life maintains certificates of authority to transact insurance in all 50 states. Its NAIC identification number is 61271.
The words Financial Planning and Financial Advisor make no claims. Please see form ADV for disclosures. 401(k) plans and quotes are intended for Minnesota only and may be administered by other vendors including Fidelity, John Hancock, Principal Life, Nationwide Bisys, American Funds and others. Wealth management services may be provided by a third party. Financial Planning and Financial Advisor are titles used by Investment Adviser Representative's of the Princor RIA.
Tuesday, January 8, 2008
http://www.joeswanson.com/location.cfm
Money and the Battle of the Sexes
http://www.joeswanson.com/location.cfm
In a survey of affluent married couples, 56% of husbands said they were the primary financial decision makers, but only 20% of wives said their husbands took the lead when it came to money matters.1 In fact, 61% of the women said they made financial decisions jointly, whereas only 42% of the men reported that they made these decisions with their wives.2 In other words, a majority of married couples have different ideas about money. No surprise there.When it comes to your financial situation, are you and your spouse on the same ledger page? Miscommunication in this area can lead not only to confusion, but also to some unpleasant consequences.Retirement Ready?When it comes to retirement, what couples don’t know about each other can hurt them both. More than 30% of couples responded differently to questions about when they were going to retire, the kind of retirement lifestyle they were seeking, and whether they planned to work in retirement.3 Different expectations about these matters can easily lead to a situation in which a couple’s retirement savings may be inadequate to provide the lifestyle they both desire.In fact, 62% of the couples who did not make financial decisions jointly were unprepared for many aspects of retirement, including not having a current will, the appropriate insurance policies, and other adequate estate conservation arrangements.4Death Is Not the End (of Financial Troubles)Unfortunately for couples who neglect to discuss financial issues, the pain of losing a spouse can be compounded by financial headaches. Unless both parties are fully informed about the family’s finances, the surviving spouse could be left with a confusing mess. This could cause bills and taxes to go unpaid, bank and retirement accounts to become lost, and insurance polices to lapse. The survivor could also miss out on collecting any death benefits that are owed to him or her.When both spouses are informed about the household finances, it can reduce the potential for mistakes, misunderstandings, and lost opportunities. It can also help ensure that both spouses are prepared to fund a comfortable retirement.1–2) Financial Planning, June 20073–4) Business Wire, April 17, 2007Fee-Based financial planning 11100 Wayzata Blvd, Suite 161•Minnetonka, MN•55305Phone: 952.277.4259Toll Free: 800.626.7095•Fax: 952.277.4301
www.joeswanson.com
•swanson.joe@principal.com
http://www.joeswanson.com/location.cfm
In a survey of affluent married couples, 56% of husbands said they were the primary financial decision makers, but only 20% of wives said their husbands took the lead when it came to money matters.1 In fact, 61% of the women said they made financial decisions jointly, whereas only 42% of the men reported that they made these decisions with their wives.2 In other words, a majority of married couples have different ideas about money. No surprise there.When it comes to your financial situation, are you and your spouse on the same ledger page? Miscommunication in this area can lead not only to confusion, but also to some unpleasant consequences.Retirement Ready?When it comes to retirement, what couples don’t know about each other can hurt them both. More than 30% of couples responded differently to questions about when they were going to retire, the kind of retirement lifestyle they were seeking, and whether they planned to work in retirement.3 Different expectations about these matters can easily lead to a situation in which a couple’s retirement savings may be inadequate to provide the lifestyle they both desire.In fact, 62% of the couples who did not make financial decisions jointly were unprepared for many aspects of retirement, including not having a current will, the appropriate insurance policies, and other adequate estate conservation arrangements.4Death Is Not the End (of Financial Troubles)Unfortunately for couples who neglect to discuss financial issues, the pain of losing a spouse can be compounded by financial headaches. Unless both parties are fully informed about the family’s finances, the surviving spouse could be left with a confusing mess. This could cause bills and taxes to go unpaid, bank and retirement accounts to become lost, and insurance polices to lapse. The survivor could also miss out on collecting any death benefits that are owed to him or her.When both spouses are informed about the household finances, it can reduce the potential for mistakes, misunderstandings, and lost opportunities. It can also help ensure that both spouses are prepared to fund a comfortable retirement.1–2) Financial Planning, June 20073–4) Business Wire, April 17, 2007Fee-Based financial planning 11100 Wayzata Blvd, Suite 161•Minnetonka, MN•55305Phone: 952.277.4259Toll Free: 800.626.7095•Fax: 952.277.4301
www.joeswanson.com
•swanson.joe@principal.com
Sunday, January 6, 2008
World of Opportunity
www.joeswanson.com
The United States is often considered the investment capital of the world. We are home to some of the world’s most valuable corporations. Our stable legal and monetary systems make this country highly attractive to global capital.It may be tempting to think that investing at home is enough, but this kind of thinking misses opportunities. In 14 out of the past 30 years, foreign stocks were the top–performing asset class, compared with domestic stocks, bonds, and cash equivalents (see table below). If you had ignored foreign investment opportunities during this period, you would have missed out on owning an asset class that outperformed the other three in almost one out of every two years since 1977.It’s wise to spread your investment dollars over multiple asset classes, but this doesn’t mean that rushing out to buy a handful of foreign investments is the ticket to easy money. Foreign equities are subject to some risks not present with U.S. investments. They need to be understood before you invest. Currency FluctuationsInvestments denominated in a foreign currency are influenced by the exchange rate with the U.S. dollar. For example, when a foreign currency is weak against the dollar, investors may get more for their money. On the other hand, if the foreign currency grows even weaker, the principal and any return may lose value when exchanged back into dollars. Political and Economic StabilityWe may take for granted the degree to which property rights are enforced in this country, but our protections are among the strongest in the world. Investing outside the United States requires an understanding of the political and economic forces at work in the nations that have promising investment potential. It also requires an ability to understand a country’s accounting standards in order to ensure accuracy in due diligence.Foreign investments can play a role in most balanced portfolio strategies. If you are interested in learning more, we can help you determine whether investing abroad is appropriate for your portfolio. Fee-Based financial planning 11100 Wayzata Blvd, Suite 161Minnetonka, MN 55305
Phone: 952.277.4259Toll Free: 800.626.7095Fax: 952.277.4301www.joeswanson.comswanson.joe@principal.com
www.joeswanson.com
The United States is often considered the investment capital of the world. We are home to some of the world’s most valuable corporations. Our stable legal and monetary systems make this country highly attractive to global capital.It may be tempting to think that investing at home is enough, but this kind of thinking misses opportunities. In 14 out of the past 30 years, foreign stocks were the top–performing asset class, compared with domestic stocks, bonds, and cash equivalents (see table below). If you had ignored foreign investment opportunities during this period, you would have missed out on owning an asset class that outperformed the other three in almost one out of every two years since 1977.It’s wise to spread your investment dollars over multiple asset classes, but this doesn’t mean that rushing out to buy a handful of foreign investments is the ticket to easy money. Foreign equities are subject to some risks not present with U.S. investments. They need to be understood before you invest. Currency FluctuationsInvestments denominated in a foreign currency are influenced by the exchange rate with the U.S. dollar. For example, when a foreign currency is weak against the dollar, investors may get more for their money. On the other hand, if the foreign currency grows even weaker, the principal and any return may lose value when exchanged back into dollars. Political and Economic StabilityWe may take for granted the degree to which property rights are enforced in this country, but our protections are among the strongest in the world. Investing outside the United States requires an understanding of the political and economic forces at work in the nations that have promising investment potential. It also requires an ability to understand a country’s accounting standards in order to ensure accuracy in due diligence.Foreign investments can play a role in most balanced portfolio strategies. If you are interested in learning more, we can help you determine whether investing abroad is appropriate for your portfolio. Fee-Based financial planning 11100 Wayzata Blvd, Suite 161Minnetonka, MN 55305
Phone: 952.277.4259Toll Free: 800.626.7095Fax: 952.277.4301www.joeswanson.comswanson.joe@principal.com
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