Share:

The best defense against today’s markets? Play offense, regularly

The best defense against today's markets? Play offense, regularly

The volatile stock markets we've endured over the past few years can be a serious challenge for investors. Have you held back from the markets because of you lack confidence about their short-term direction?

One of the most effective strategies in times like these may be to take advantage of price swings and keep putting money to work in the market. Investing a lump sum into stocks during such unpredictable times may not be particularly enticing to most of us. But making regular investments on a consistent basis over time could turn the market's volatility in your favor.

While some may think it is never good to invest when stocks are losing value, a systematic investment strategy creates the potential to turn a weak market into a profitable, long run opportunity. If you believe stocks will gain in value between now and the time you need to take your money out of the market, today's volatility might create an attractive opportunity for you.

The dollar-cost averaging approach

Dollar-cost averaging is a term that has become commonplace for many investors. It involves buying shares of an investment, such as a mutual fund, with a fixed dollar amount at regular intervals. When share prices are low, your investment purchases more shares. Over time, the average cost of your shares will usually be lower than the average price of those shares.

When share prices rise, fewer shares are purchased. This strategy is not guaranteed to result in a profit or protect against a loss. To be most effective, it requires continuous investing, regardless of fluctuating price levels. Before committing to a systematic investment program, you must consider your financial ability and willingness to continue to invest through fluctuating markets.

The big payoff from dollar-cost averaging through volatile periods can come when markets regain lost ground. If you continued to invest throughout the market's downturn, you are likely to have accumulated a larger number of shares (compared to making a lump sum investment at the start of the investment period) and could come out dollars ahead. Investors should consider their ability to continue investing through periods of low market prices.

Consider the example of an investor assessing his investment options in October 2007. This happened to be just when the stock market peaked before the major downfall that lasted until March 2009. The following example is based on a hypothetical investment in the Standard & Poor's 500 stock index, an unmanaged index of stocks. (It is not possible to invest directly in the S&P 500 or any other index. No taxes or fees are assumed.).

A lump sum of $3,000 invested at the start of October 2007 would have lost ground, declining to a value of $2,435 by the end of March 2010. That's a loss of almost 19 percent in 2-1/2 years. By contrast, the individual who decided to consistently invest the $3,000 in small bites - $100 per month for 30 months - would have seen the investment grow to a value of $3,305. That's a 10 percent increase in value for the total sum invested over the same period of time.

The difference was dollar-cost averaging, which took advantage of the market's temporary downturn to build additional shares of the investment. That paid off when the market began to recover lost ground, as it did in the last 12 months of the period in this example.

This hypothetical example demonstrates two potential benefits of dollar-cost averaging. First, it allows market downturns to potentially work in your favor and may make it easier to invest through difficult times. Second, if the market does rally, you benefit more when the environment improves, having purchased more shares in the market during different periods at varying price levels.

You may already do it at work

If you participate in a retirement savings plan at work and continue to defer income out of each paycheck into your plan, you are already making use of dollar-cost averaging. You are putting money into the market on a systematic basis. That may help insulate your retirement portfolio from the market's continued volatility and unpredictability.

Even if your retirement accounts lose ground temporarily when market corrections occur, it may make sense to continue investing through the difficult times. In many ways, maintaining a consistent investment pattern throughout the ups-and-downs of the market may be your best defense against the impact of short-term swings. If you believe that the market will, over time, maintain its long-term pattern of growth, you may be best served by using this strategy to take advantage of periodic downturns to purchase more shares with your investment dollars. Many find that this strategy makes it more realistic to keep investing money over the long run.

Harvey C. Sacks, J.D. | Senior Financial Advisor | Business Financial Advisor

3220 Creamery Rd | New Hope, PA 18938

Office: 215.230.9198 | Fax: 215.230.9498| Mobile: 215.802.2509 | harvey.c.sacks@ampf.com

84 Park Ave Suite G-103C | Flemington, NJ 08822

Office:908.788.2999 | Fax: 908.788.2850

Learn more at www.ameripriseadvisors.com/harvey.c.sacks

CA Insurance License #370456

We shape financial solutions for a lifetime®

An Ameriprise Financial Franchise. Ameriprise Financial Services, Inc. offers financial advisory services, investments, insurance and annuity products. RiverSource® and Columbia ManagementSM products are offered by affiliates of Ameriprise Financial Services, Inc., Member FINRA and SIPC.

###

Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC. Some products and services may not be available in all jurisdictions or to all clients.

File #102068

---

What’s a ‘double dip’?—and other language of today’s market

What's a 'double dip'?-and other language of today's market

Just when you thought you'd mastered the lingo, here comes another wave of financial jargon to describe what's going on in the markets today. To help keep you up-to-speed, here's a short glossary of some of the terms you might encounter.

Double dip

In economic parlance, this refers to the risk that the economy, not long after coming out of a recession, will slip back into another recession. In the current economic environment, some are raising the possibility that this could happen in the U.S. or elsewhere.

U-, V- or W-shaped recovery

This concerns the pace of an economic recovery. A "V-shaped" recovery means the economy dips dramatically (the downslope of the "V") and rebounds just as quickly (the upslope of the "V"). A "U-shaped" recession and recovery is less pronounced and slower to develop. A "W-shaped" recovery involves a sharp decline in certain economic metrics, followed by a sharp rise, followed again by a sharp decline then finishing with another sharp rise.

Deflation

Most of us are familiar with the concept of inflation, an increase in living costs. Whether modest or significant, inflation has been a way of life for Americans through recent generations. Deflation is the opposite-a period when prices for goods and services begin to fall. Deflation is typically associated with a decline in the standard of living, and some suggest that the risk of this has recently risen.

Market correction

When the stock market declines by a level of 5% or more, up to 20% (as measured by a broad market index such as the Dow Jones Industrial Average or S&P 500), professionals generally describe it as a correction in stock prices.

Bear market

The generally accepted standard to qualify for a bear market is when stocks (as measured by an index) drop 20% or more in a set period of time, perhaps within two months or less.

Bubble

In economic terms, a bubble occurs when the value of a particular item or industry rises dramatically over a short period of time, usually to unsustainable levels. In recent times, bubbles have occurred in the technology industry (the "dot-com" bubble of the late 1990s) and in real estate (the housing bubble that began to burst in 2007).

Derivatives

This is the name given to a contract between two parties that derives its price from an underlying asset. The value is based on changes in the prices of the underlying asset, which can range from hard assets like gold or agricultural products to interest rates and stocks. While they provide a way to hedge risk, more regulation may be placed on those that attract speculators, which some believe has caused problems in the markets.

High Frequency Trading (HFT)

Much of the market's recent volatility has been blamed on rapid trading strategies that large institutions execute through powerful computers. These machines can quickly crunch numbers to identify potential short-term price opportunities and then execute very large buy and sell orders. If it works right, it has the potential to generate significant profits for the firms doing the trading. Technology advances have made this a factor in the markets only in recent years.

### 2

Harvey C. Sacks, J.D. | Senior Financial Advisor | Business Financial Advisor

3220 Creamery Rd | New Hope, PA 18938

Office: 215.230.9198 | Fax: 215.230.9498| Mobile: 215.802.2509 | harvey.c.sacks@ampf.com

84 Park Ave Suite G-103C | Flemington, NJ 08822

Office:908.788.2999 | Fax: 908.788.2850

Learn more at www.ameripriseadvisors.com/harvey.c.sacks

CA Insurance License #370456

We shape financial solutions for a lifetime®

An Ameriprise Financial Franchise. Ameriprise Financial Services, Inc. offers financial advisory services, investments, insurance and annuity products. RiverSource® and Columbia ManagementSM products are offered by affiliates of Ameriprise Financial Services, Inc., Member FINRA and SIPC.

Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC. Some products and services may not be available in all jurisdictions or to all clients.

The Standard & Poor's 500 Index (S&P 500 Index), an unmanaged index of common stocks, is frequently used as a general measure of market performance. The index reflects reinvestment of all distributions and changes in market prices, but excludes brokerage commissions or other fees. It is not possible to invest directly in an index.

File #10258

---

Are the markets predictably unpredictable?

Are the markets predictably unpredictable?

You've heard these words before - the direction of the stock market - particularly over short time periods - is very difficult to predict. Look no further than the recovery in stocks that began, unannounced, in early March 2009.

That period of time represents yet another case where, just when you are convinced the market will continue moving in one direction, sentiment shifts without notice and stocks are suddenly heading in a completely different direction. While this has happened throughout the history of the markets, too many investors have a difficult time remembering the market's history of unpredictability, and often change course at precisely the wrong time. Many make the mistake of selling near the market's low point, then miss out on a recovery.

Those who sold out in early 2009 paid a steep price. From its low on March 9, 2009 to the end of April 2010, the Dow Jones Industrial Average (DJIA) gained 67 percent, a dramatic rally for such a short period of time - but not unprecedented. Compare it to other major bear markets and follow-up recoveries in U.S. history:

Bear market begins DJIA low* DJIA 13 months later** %age gain

1929 (89% market drop) 41.22 102.41 148.4%

1973 (48% market drop) 577.60 975.28 68.9%

2000 (49% market drop) 7286.27 10428.02 43.1%

* Lowest point reached in bear market before a sustained recovery

** Price at end of 13th month after market low was reached (for instance, April 30, 2010 following March, 9, 2009 market bottom.) Source: Historical record of public data posted by Dow Jones & Co.

In each of the cases, the starting point of the rally was unpredictable. Yet the results were extremely beneficial for those who kept their money working in the market.

Have a plan and stick with it Just as dramatic market recoveries often begin without notice, the same can be true of market downturns. In today's environment, where the media can provide you with nearly a minute-by-minute assessment of where the markets stand, it is easy to think about short-term trends and get caught up in the idea of trading in-and-out of the market. This is a very challenging investment approach that few have managed to master. It is also a high stress style of investing that is subject to a wide range of unforeseen variables that can impact markets on a day-to-day basis.

For most of us, it may be more sensible to maintain a "tried-and-true" approach to investing. This involves:

• Putting money to work regularly - most of us do this with each paycheck by directing part of our income into our workplace retirement plans. Regular contributions to IRAs and other investments also make sense.

• Owning a diversified mix of investments - you should choose an asset allocation strategy that is appropriate for your risk tolerance level, investment objectives and the time you have available to let your investments grow.

• Holding for the long run - to help avoid the potential for losses from short-term market swings, you may be better positioned for success by maintaining a long-term stance with your portfolio.

Most of us are trying to achieve long-range goals. Trying to manage money in a short-term fashion in response to changes in the market may be detrimental in your quest to build wealth over time. You may be better served by maintaining a disciplined, long-term, diversified approach. Discuss strategies for your situation with your financial professional. 2

Harvey C. Sacks, J.D. | Senior Financial Advisor | Business Financial Advisor 3220 Creamery Rd | New Hope, PA 18938

Office: 215.230.9198 | Fax: 215.230.9498| Mobile: 215.802.2509 | harvey.c.sacks@ampf.com 84 Park Ave Suite G-103C | Flemington, NJ 08822 Office:908.788.2999 | Fax: 908.788.2850

Learn more at www.ameripriseadvisors.com/harvey.c.sacks

CA Insurance License #370456

We shape financial solutions for a lifetime® An Ameriprise Financial Franchise. Ameriprise Financial Services, Inc. offers financial advisory services, investments, insurance and annuity products. RiverSource® and Columbia ManagementSM products are offered by affiliates of Ameriprise Financial Services, Inc., Member FINRA and SIPC. Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC. Some products and services may not be available in all jurisdictions or to all clients. Diversification helps you spread risk throughout your portfolio, so investments that do poorly may be balanced by others that do relatively better. Diversification and asset allocation do not assure a profit and do not protect against loss in declining markets. The Dow Jones Industrial Average is an unmanaged index that follows the returns of 30 well-established American companies, and is frequently used as a general measure of market performance. The index reflects reinvestment of all distributions and changes in the market prices, but excludes brokerage commissions and other fees. It is not possible to invest directly in an index. © 2010 Ameriprise Financial, Inc. All rights reserved. File # 100802 (5/10)

---

Health care reform and your money: Four things to watch

Health care reform and your money:

Four things to watch

One of the biggest hurdles to the passage of the sweeping health care overhaul earlier this year was to determine how it will be funded. The Patient Protection and Affordable Care Act will tap a variety of funding sources, and will shift some costs from one part of the system to another as modified by the Health Care and Education Affordability Reconciliation Act of 2010. As a result, the average health consumer may see shifts in their premiums, taxes, deductibles, and co-pays. Here are four ways in which the health care reform bill might possibly change your finances, and each of them is worth watching.

You may receive a tax subsidy.

The new law establishes state- or region-based insurance exchanges where individuals and small businesses can shop for insurance plans. These regulated plans will be subject to standardization rules, and may offer better benefits than some current plans - but that may also drive their price tag higher. Enter the tax subsidy program, which will offset some of the increased cost of plans available in the exchanges, beginning in 2014. Families earning up to four times the poverty rate ($88,200 for a family of four in 2009) will be eligible for a tax subsidy that ensures they pay no more than 9.5 percent of their income.

You'll pay if you don't play.

Beginning in 2014, the federal government will fine those who don't have health insurance. Why? Those most likely to risk living without health insurance are the young and the healthy. However, when insurers are forced to cover anyone who applies, and the healthy people leave the system, the insured pool is likely to need more health services, and be more expensive on average. That starts a negative trend where premiums are driven higher, and even more healthy people opt out. The insurance mandate, for which there are only a handful of exemptions, will levy fines that go up for the first three years. In 2014, you'll pay the greater of $95 or 1 percent of taxable income; in 2015 the numbers are $325 and 2 percent, and in 2016 they are $695 and 2.5 percent. Fines will continue after 2016 based on a government calculation of a cost-of-living adjustment to be determined.

You might pay more if you earn more.

Couples who earn more than $250,000 a year, and singles earning more than $200,000 through wages or self-employment, will be subject to an additional tax starting in 2013. If you fall into one of these categories, you will pay an additional 0.9 percent tax for Medicare Part A (hospital insurance) on earned income over the threshold amount. Additionally, for couples with modified adjusted gross income (AGI) over $250,000, ($200,000 for singles) there is a new Medicare surtax of 3.8% on the lesser of net investment income or the excess of AGI over the threshold amount. This tax also begins in 2013.

Your premiums might rise.

Insurance policy pricing today is based on risk. So, sicker people pay higher premiums and healthier people pay less. The reform effort seeks to even out those premiums, which will help those at a higher risk, but it will hurt those on the lower end of the risk scale. Subsidies, and the ability to remain on a parent's plan longer, will help offset the increased cost, but a spike in premiums for the young and healthy is one of the expected changes from the bill. The new law does provide an option for younger Americans to purchase a plan that only covers catastrophic health costs - a plan whose premium is likely to cost less in exchange for a high deductible.

Other Implications. Other ways that individuals may be affected is in the way plans may evolve to avoid being in the so-called Cadillac Plan tax. Plans may ask enrollees to share more of the costs for premiums, co-pays, and deductibles. The use of Health Savings Accounts (HSAs) where individuals save money for out-of-pocket health costs on a tax-advantaged basis may increase.

There is one sure thing: the reform bill will have an impact on the entire industry. So, no matter whether you remain with your employer-sponsored health plan or you take advantage of a new plan through your state's insurance exchange, there will be changes. Changes worth watching.

Harvey C. Sacks, J.D. | Senior Financial Advisor | Business Financial Advisor

Office: 215.230.9198 | Fax: 215.230.9498| Mobile: 215.802.2509 | harvey.c.sacks@ampf.com

3220 Creamery Rd | New Hope, PA 18938

84 Park Ave Suite G-103C | Flemington, NJ 08822 Office:908.788.2999 | Fax: 908.788.2850

CA Insurance License #370456

Learn more at www.ameripriseadvisors.com/harvey.c.sacks

We shape financial solutions for a lifetime® An Ameriprise Financial Franchise. Ameriprise Financial Services, Inc. offers financial advisory services, investments, insurance and annuity products. RiverSource® and Columbia ManagementSM products are offered by affiliates of Ameriprise Financial Services, Inc., Member FINRA and SIPC. Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC. Some products and services may not be available in all jurisdictions or to all clients. © 2010 Ameriprise Financial, Inc. All rights reserved. File #100690

---

A new look for college financing plans

A new look for college financing plans

The health care reform package signed into law this year also included changes that will affect

college students who seek financial aid to help pay ever-increasing tuition costs. While the new

provisions don't significantly ease the overall financial burden facing those who are paying more

for higher education, they do make changes to the existing system of funding that students and

their parents should take note of:

A new system for student loans

The existing Federal Family Education Loan (FFEL) program, where private lenders provided

loan packages for college tuition and related expenses, is being eliminated. Effective July 1,

2010, all federal student loans are made to borrowers by the federal government under what is

referred to as the Direct Loan program. This eliminates government subsidies for private lenders

to encourage participation in education financing, with some of the savings directed to students.

The change may not be very visible except for the fact that there will be one source for student

loans, rather than having to shop around for the best deal. Find out more about how to access

this money through the financial aid office of the institution the student attends.

Expansion of Pell Grants

The government's most significant grant program, aimed at students who come from lower

income families (typically those earning less that $45,000 per year) is set for modest

enhancements. The law now requires automatic inflation adjustments in Pell Grants beginning in

2013. The maximum Pell Grant is scheduled to be $5,500 for the 2010-2011 school year, an

increase of $150 from the previous year. It will remain at that level until the inflation adjustment

provision kicks in. The value of a Pell Grant should steadily rise to about $5,900 by the 2019-

2020 school year.

Easing of repayment terms

Current law sets the maximum required loan repayment by a student to 15% of discretionary

income in any year. Any remaining debt is forgiven after 25 years. The terms become even more

favorable for students in several years. Those who take out new federal student loans after July

1, 2014 will be required to pay no more than 10% of their discretionary income. Better yet, the

term of the loan expires five years earlier than under existing law. If a balance remains on the

loan after 20 years, the remainder of the loan is forgiven. This change, only affecting loans after

July 1, 2014, will help make financing an education less of a burden over the long run.

Don't forget the tax credit

Continuing for the 2010 tax year (and at this point, not beyond it) is another important provision

that can trim the bottom line cost of higher education. The American Opportunity Tax Credit

provides up to a $2,500 tax credit for higher education costs such as tuition and fees for the first

four years of undergraduate education. The full credit is available for married couples filing a joint

return with incomes of up to $160,000, and is phased out above that level. The income limit for

single tax filers to qualify for the full credit is $80,000. The tax credit is, in effect, a dollar-for-dollar

reduction of the higher education bills you face if you qualify to earn it. After 2010, the Hope

Scholarship credit continues but at lower levels.

Harvey C. Sacks, J.D. | Senior Financial Advisor | Business Financial Advisor

3220 Creamery Rd | New Hope, PA 18938

Office: 215.230.9198 | Fax: 215.230.9498| Mobile: 215.802.2509 | harvey.c.sacks@ampf.com

84 Park Ave Suite G-103C | Flemington, NJ 08822

Office:908.788.2999 | Fax: 908.788.2850

Learn more at www.ameripriseadvisors.com/harvey.c.sacks

CA Insurance License #370456

We shape financial solutions for a lifetime®

An Ameriprise Financial Franchise. Ameriprise Financial Services, Inc. offers financial advisory services, investments,

insurance and annuity products. RiverSource® and Columbia ManagementSM products are offered by affiliates of

Ameriprise Financial Services, Inc., Member FINRA and SIPC.

###

Brokerage, investment and financial advisory services are made available through Ameriprise

Financial Services, Inc. Member FINRA and SIPC. Some products and services may not be

available in all jurisdictions or to all clients.

© 2010 Ameriprise Financial, Inc. All rights reserved.

File # 100694

---

The next move for your workplace retirement plan

The next move for your workplace retirement plan

These are times that find many people moving on from their jobs, sometimes by their own choice

and sometimes not. If you've left your job or may be doing so soon, you might be wondering what

to do with the retirement savings you've accumulated through the plan sponsored by your

employer (such as a 401(k) or 403(b) plan).

You have four basic options:

• Take a cash payout

• Leave the money in the former employer's plan

• Move it to the plan offered by your new employer

• Roll the dollars into an IRA

Cashing in

Some are tempted to take the cash payout. Though enticing, this option should almost always be

avoided. The distribution will generally be treated as ordinary income and subject to mandatory

20% federal tax withholding, and, if you have not yet reached age 59-1/2, subject to a potential

10% penalty for early withdrawal of qualified retirement plan assets. Unless you're desperate for

cash and all alternatives have been exhausted, cashing in on your retirement savings plan is

costly and unwise.

Keeping money in an employer's plan

If you feel comfortable with the investment choices offered and are familiar with how it works, you

might consider leaving your money in your former employer's plan. Keep in mind that your

money will be subject to the rules of the plan in terms of provisions related to investment options

and withdrawal options. In effect, you will probably have less control over your money than if the

funds were rolled into your own IRA.

Some people like the idea of rolling retirement plan dollars to the plan offered by their new

employer. This option offers the convenience of having all of your workplace retirement plan

dollars in one plan. However, there still may be limitations with the plan. Be sure you are

confident that the new workplace plan gives you enough investment flexibility to make the most of

your retirement savings.

Rolling it into an IRA

An alternative approach is to roll money from your former employer's plan into your own IRA

account. An IRA typically offers you the ability to put your money to work in a wide variety of

investments, including individual stocks. You generally have a fair amount of flexibility to move

money from one investment to another.

If you decide to roll your savings from a workplace plan to an IRA, make sure the transaction is a

direct rollover from the retirement plan to the IRA custodian. A distribution paid to you raises a

number of possible tax implications, such as mandatory 20% withholding on the distribution. Be

sure to consider any benefits that may be lost during a rollover, such as the favorable tax

treatment for appreciated employer stock held in a qualified plan. If you are considering a

rollover, you might also want consider a Roth IRA. A Roth IRA creates the potential for tax-free

withdrawals from your IRA savings in the future, which could greatly enhance your long-term

financial security. However, converting to a Roth IRA is generally taxable as ordinary income, so

you have to weigh your options carefully to figure out what's in your best interest. Talk to your

financial and tax advisors to determine the best option for you.

####

P.S. The finest compliment I can receive is a referral from a satisfied client. Refer me to others at

ameripriseadvisors.com/harvey.c.sacks@ampf.com

> > > > > > >

Harvey C. Sacks, J.D. | Senior Financial Advisor | Business Financial Advisor

3220 Creamery Rd | New Hope, PA 18938

Office: 215.230.9198 | Fax: 215.230.9498| Mobile: 215.802.2509 | harvey.c.sacks@ampf.com

84 Park Ave Suite G-103C | Flemington, NJ 08822

Office:908.788.2999 | Fax: 908.788.2850

Learn more at www.ameripriseadvisors.com/harvey.c.sacks

CA Insurance License #370456

We shape financial solutions for a lifetime®

An Ameriprise Financial Franchise. Ameriprise Financial Services, Inc. offers financial advisory services, investments,

insurance and annuity products. RiverSource® and Columbia ManagementSM products are offered by affiliates of

Ameriprise Financial Services, Inc., Member FINRA and SIPC.

Brokerage, investment and financial advisory services are made available through Ameriprise

Financial Services, Inc. Member FINRA and SIPC. Some products and services may not be

available in all jurisdictions or to all clients.

© 2010 Ameriprise Financial, Inc. All rights reserved.

File # 96763

---

Making your dollar travel farther

Making your dollar travel farther

The recession has given many of us grounds to tighten up our spending habits. Non-necessities

have been limited, and luxuries-such as travel abroad-have been taken off the table. But

perhaps now that some time has passed since the new economic realities have set in, you might

be looking for affordable means to take in the sights and sounds of a foreign culture. If this is the

case, a well-planned itinerary and a few rules-of-thumb can help you maximize your money

overseas.

Find where the dollar holds up better

Not all currencies perform alike against the dollar. Despite recent gains, the greenback continues

to lag behind the pound and the euro. However, exchange rates are favorable in other parts of

the world. Mexico, Argentina, Hungary and South Africa are just a few places where the value of

the dollar remains strong. Do your research and find a location that matches your travel priorities

and your budget. Keep in mind that costs for comparable goods and services could be higher or

lower depending on the country.

Look for cheaper housing options

If your son or daughter is the one who will be spending time abroad, a "homestay"-or residing

with a local family-may be a good housing option. Along with a room, this arrangement can

provide meals and other amenities. As they travel around, students will find youth hostels provide

cost-effective accommodations (and usually cooking facilities) for a reasonable nightly fee.

Bed and Breakfasts, Elderhostels, and local hotels may also prove less expensive than the rates

at large-chain hotels. With the plethora of online review sites now available, you can research

these spots in advance to ensure they're to your taste.

Eating "smart"

The cost of restaurant meals can quickly add up when you travel overseas. Look for alternative

options. Local grocery stores and open-air markets can provide a source of less expensive food

to eat on the go, and they're a great introduction into the culture and cuisine of an area.

When you visit restaurants, try to find establishments that cater to the local population. Their

prices tend to be lower than tourist-oriented restaurants. A bottle of house wine to go with a meal

can often be a better deal than individual drinks. And in many places, it's cheaper if you order a

beer, cocktail or even a cappuccino while standing at the bar rather than sitting at a table. Keep

in mind that as customs dictate, tipping may or may not be necessary.

Getting around

For the time you spend in large cities, it will probably be more cost-effective to use public

transportation (and walk a lot) rather than renting a car, which can incur parking costs. If you

travel by rail, study your options to find the best deals for your itinerary. For air travel, use web

resources or inquire with a good travel agent to find the best bargains.

Other cost-saving measures

• Students or others planning an extended stay should explore whether purchasing a local cell

phone or buying a phone card offers cheaper connections back home.

• Cash from ATMs usually offers the best exchange rate. Check with your bank or credit card

company to find out what fees apply to your transactions.

• Look for passes to events and museums to get the best deals. Many destinations offer

package deals that make it more cost-effective to tour favorite attractions.

###

Brokerage, investment and financial advisory services are made available through Ameriprise

Financial Services, Inc. Member FINRA and SIPC. Some products and services may not be

available in all jurisdictions or to all clients.

© 2010 Ameriprise Financial, Inc. All rights reserved.

File # 97905

(3/10)

P.S. The finest compliment I can receive is a referral from a satisfied client. Refer me to others at

ameripriseadvisors.com/harvey.c.sacks@ampf.com

> > > > > > >

Harvey C. Sacks, J.D. | Senior Financial Advisor | Business Financial Advisor

3220 Creamery Rd | New Hope, PA 18938

Office: 215.230.9198 | Fax: 215.230.9498| Mobile: 215.802.2509 | harvey.c.sacks@ampf.com

84 Park Ave Suite G-103C | Flemington, NJ 08822

Office:908.788.2999 | Fax: 908.788.2850

Learn more at www.ameripriseadvisors.com/harvey.c.sacks

CA Insurance License #370456

We shape financial solutions for a lifetime®

An Ameriprise Financial Franchise. Ameriprise Financial Services, Inc. offers financial advisory services, investments,

insurance and annuity products. RiverSource® and Columbia ManagementSM products are offered by affiliates of

Ameriprise Financial Services, Inc., Member FINRA and SIPC.

---

Making your dollar travel farther

Making your dollar travel farther

The recession has given many of us grounds to tighten up our spending habits. Non-necessities

have been limited, and luxuries-such as travel abroad-have been taken off the table. But

perhaps now that some time has passed since the new economic realities have set in, you might

be looking for affordable means to take in the sights and sounds of a foreign culture. If this is the

case, a well-planned itinerary and a few rules-of-thumb can help you maximize your money

overseas.

Find where the dollar holds up better

Not all currencies perform alike against the dollar. Despite recent gains, the greenback continues

to lag behind the pound and the euro. However, exchange rates are favorable in other parts of

the world. Mexico, Argentina, Hungary and South Africa are just a few places where the value of

the dollar remains strong. Do your research and find a location that matches your travel priorities

and your budget. Keep in mind that costs for comparable goods and services could be higher or

lower depending on the country.

Look for cheaper housing options

If your son or daughter is the one who will be spending time abroad, a "homestay"-or residing

with a local family-may be a good housing option. Along with a room, this arrangement can

provide meals and other amenities. As they travel around, students will find youth hostels provide

cost-effective accommodations (and usually cooking facilities) for a reasonable nightly fee.

Bed and Breakfasts, Elderhostels, and local hotels may also prove less expensive than the rates

at large-chain hotels. With the plethora of online review sites now available, you can research

these spots in advance to ensure they're to your taste.

Eating "smart"

The cost of restaurant meals can quickly add up when you travel overseas. Look for alternative

options. Local grocery stores and open-air markets can provide a source of less expensive food

to eat on the go, and they're a great introduction into the culture and cuisine of an area.

When you visit restaurants, try to find establishments that cater to the local population. Their

prices tend to be lower than tourist-oriented restaurants. A bottle of house wine to go with a meal

can often be a better deal than individual drinks. And in many places, it's cheaper if you order a

beer, cocktail or even a cappuccino while standing at the bar rather than sitting at a table. Keep

in mind that as customs dictate, tipping may or may not be necessary.

Getting around

For the time you spend in large cities, it will probably be more cost-effective to use public

transportation (and walk a lot) rather than renting a car, which can incur parking costs. If you

travel by rail, study your options to find the best deals for your itinerary. For air travel, use web

resources or inquire with a good travel agent to find the best bargains.

Other cost-saving measures

• Students or others planning an extended stay should explore whether purchasing a local cell

phone or buying a phone card offers cheaper connections back home.

• Cash from ATMs usually offers the best exchange rate. Check with your bank or credit card

company to find out what fees apply to your transactions.

• Look for passes to events and museums to get the best deals. Many destinations offer

package deals that make it more cost-effective to tour favorite attractions.

###

Brokerage, investment and financial advisory services are made available through Ameriprise

Financial Services, Inc. Member FINRA and SIPC. Some products and services may not be

available in all jurisdictions or to all clients.

© 2010 Ameriprise Financial, Inc. All rights reserved.

File # 97905

(3/10)

P.S. The finest compliment I can receive is a referral from a satisfied client. Refer me to others at

ameripriseadvisors.com/harvey.c.sacks@ampf.com

> > > > > > >

Harvey C. Sacks, J.D. | Senior Financial Advisor | Business Financial Advisor

3220 Creamery Rd | New Hope, PA 18938

Office: 215.230.9198 | Fax: 215.230.9498| Mobile: 215.802.2509 | harvey.c.sacks@ampf.com

84 Park Ave Suite G-103C | Flemington, NJ 08822

Office:908.788.2999 | Fax: 908.788.2850

Learn more at www.ameripriseadvisors.com/harvey.c.sacks

CA Insurance License #370456

We shape financial solutions for a lifetime®

An Ameriprise Financial Franchise. Ameriprise Financial Services, Inc. offers financial advisory services, investments,

insurance and annuity products. RiverSource® and Columbia ManagementSM products are offered by affiliates of

Ameriprise Financial Services, Inc., Member FINRA and SIPC.

---

Take steps to prepare for the cost of a bigger family

Take steps to prepare for the cost of a bigger family

A couple's decision to start a family leads to one of the most significant periods of transition in

their lives. Along with a host of new responsibilities comes the financial impact that children have

on a household. This is not something to be taken lightly. You may be focused on immediate

expenses like diapers, booties and baby food, but that's just the start. By some estimates, the

cost of raising a child from birth to age 18 can fall in the range of $200,000, and possibly much

more depending on any number of variables related to lifestyle, education and healthcare costs.

These numbers make it apparent that it takes not just a village to raise a child, but a fair amount

of money as well. But take heart: families have been managing to make this work since people

first roamed the earth. The key is to make sure you have your financial house in order before the

new arrival comes on the scene. Here are some critical factors you can't afford to overlook:

Medical costs

The first expense that comes to mind is the cost of delivering a baby. Are you covered by medical

insurance? How about dealing with any potential complications, either for the mother or child?

Beyond that, will you have to pay additional costs to add the child to your existing insurance

policy?

Child care expenses

Some new families prefer to have a parent stay home to raise the child. Though ideal in many

respects, this option also comes at the cost of one potential income, which can put a big squeeze

on a family budget just at the time when the headcount has expanded by one. On the other

hand, if both parents plan to be back at work full-time, daycare costs become part of the equation.

Depending on where you live and the options available to you, this can easily amount to several

hundred dollars of additional expense per week-a significant cash outflow even in most dual-income

households.

Other everyday living expenses

Is your house or apartment big enough to handle the arrival of a new child? If not, you may need

to move into a larger space. A new addition to the family also means another mouth to feed, so

your grocery bill is likely to go up. Clothing is another ongoing cost, and your entertainment

budget may rise as well, if for no other reason than the need to pay a babysitter when you want to

go out.

Education expenses

If you choose to send your child to a private school for grade school and high school, you could

be in store for some hefty tuition bills. And the cost only escalates for higher education. If you're

planning to assist your child with college expenses, you may want to consider making monthly

contributions to an education savings fund. The sooner you begin saving, the better financial

shape you'll be in when it comes time to write out the checks.

The arrival of a new child into the family is an exciting and exhausting time in a parent's life. On

top of the day-to-day tasks involved in running an expanded household, you'll have new

responsibilities related to the development and well-being of your new son or daughter. Given all

you'll have to juggle, you won't want to waste time worrying about whether your financial future is

secure. Talk to a financial advisor to etch out a plan to reach your long-term goals. Being

proactive today will mean more time to enjoy the treasures of parenthood that lie ahead.

###

P.S. The finest compliment I can receive is a referral from a satisfied client. Refer me to others at

ameripriseadvisors.com/harvey.c.sacks@ampf.com

> > > > > > >

Harvey C. Sacks, J.D. | Senior Financial Advisor | Business Financial Advisor

3220 Creamery Rd | New Hope, PA 18938

Office: 215.230.9198 | Fax: 215.230.9498| Mobile: 215.802.2509 | harvey.c.sacks@ampf.com

84 Park Ave Suite G-103C | Flemington, NJ 08822

Office:908.788.2999 | Fax: 908.788.2850

Learn more at www.ameripriseadvisors.com/harvey.c.sacks

CA Insurance License #370456

We shape financial solutions for a lifetime®

An Ameriprise Financial Franchise. Ameriprise Financial Services, Inc. offers financial advisory services, investments,

insurance and annuity products. RiverSource® and Columbia ManagementSM products are offered by affiliates of

Ameriprise Financial Services, Inc., Member FINRA and SIPC.

Brokerage, investment and financial advisory services are made available through Ameriprise

Financial Services, Inc. Member FINRA and SIPC. Some products and services may not be

available in all jurisdictions or to all clients.

© 2010 Ameriprise Financial, Inc. All rights reserved.

File # 96721

(3/10)

---

Finding a Fit for Commodities in your Portfolio

Finding a Fit for Commodities in your Portfolio

These days, advertisements for investing in commodities are nearly everywhere. On T.V., radioa nd billboards, famous and not-so-famous people champion products like gold, silver and oil as reliably good investments.

The appeal is easy to understand; at a time when many investors are still licking their wounds from losses suffered during the Great Recession, can't we all sympathize with the urge to invest in something which retained its value during the crisis?

But is there really room in your portfolio to invest in commodities? What are the drawbacks? Are there risks involved?

You should understand the characteristics of commodity investments and determine an appropriate level to include in your overall asset mix before making any investment decisions. Generally speaking, commodities should not be considered a substitute for your core investments in stocks, bonds and cash-equivalent instruments.

The complexities of commodities

Gold and oil are the two most visible commodities considered for investment purposes. But a wide range of commodities fall into this category, ranging from natural gas to copper to pork bellies. Finding investment success in any single type of commodity can be challenging, particularly for those with little experience in this market. Commodity prices have a history of significant volatility. Prices can change dramatically and with little notice. That is a recipe for potential investment disaster if you are not careful about choosing the right investment.

Consider the volatile nature of prices on oil futures contracts on the New York Mercantile Exchange in recent years. Based on data published by

The Wall Street Journal, in July 2007, oil was up to $78/barrel. About one year later, oil futures topped the $145/barrel mark. By December of 2008, five months later, the price of an oil future contract fell to just $35/barrel. This type of price movement is an indication of the risks associated with investing in a single type of commodity.

Yet if structured correctly within a diversified portfolio, commodities can help reduce volatility in your overall investment mix. Often, commodity prices tend to move in a different direction from the stock and bond markets.

In the period from October 2007 to March 2009, the stock market, as measured by the Standard & Poor's 500 stock index (an unmanaged index of stocks), lost 57% of its value. During that same period of time, gold prices (based on the spot price of gold on the Commodity Exchange or COMEX) rose 25%, helping to smooth the performance of a portfolio that included gold in the mix.

Using a cautious approach

While investing in any single type of commodity may carry undesirable risk for most investors, a good case can be made for other approaches that are readily accessible.

Commodity-focused mutual funds or exchange-traded funds (ETFs) are two alternatives to consider. Funds like these offer diversification within the marketplace to provide a degree of protection from the volatile nature of individual commodities markets. Some funds invest specifically in commodity-related indexes. Others may invest in companies that participate in selected commodity businesses, such as oil exploration firms or gold mining companies.

It makes sense to talk to your investment advisor and try to determine the most appropriate way to diversify into commodities within your overall portfolio.

###

Brokerage, investment and financial advisory services are made available through Ameriprise

Financial Services, Inc. Member FINRA and SIPC. Some products and services may not be

available in all jurisdictions or to all clients.

This information is being provided only as a general source of information and is not intended to

be used as a primary basis for investment decisions, nor should it be construed as advice

designed to meet the particular needs of an individual investor.

Commodities investing involves substantial risk of loss, including volatility risks associated with

investing in a narrowly focused sector, and may not be suitable for all investors. Investment

decisions should always be made based on an investor's specific financial needs, objectives,

goals, time horizon and risk tolerance. Past performance does not guarantee future results.

Diversification helps you spread risk throughout your portfolio, so investments that do poorly may

be balanced by others that do relatively better. Diversification does not assure a profit and does

not protect against loss in declining markets.

The Standard & Poor's 500 Index (S&P 500 Index), an unmanaged index of common stocks, is

frequently used as a general measure of market performance. The index reflects reinvestment of

all distributions and changes in market prices, but excludes brokerage commissions or other fees.

It is not possible to invest directly in an index.

Investment products, including shares of mutual funds, are not federally or FDIC-insured, are not

deposits or obligations of, or guaranteed by any financial institution, and involve investment risks

including possible loss of principal and fluctuation in value. ETFs trade like stocks, are subject to

investment risk and will fluctuate in market value

P.S. The finest compliment I can receive is a referral from a satisfied client. Refer me to others at

ameripriseadvisors.com/harvey.c.sacks@ampf.com

> > > > > > >

Harvey C. Sacks, J.D. | Senior Financial Advisor | Business Financial Advisor

3220 Creamery Rd | New Hope, PA 18938

Office: 215.230.9198 | Fax: 215.230.9498| Mobile: 215.802.2509 | harvey.c.sacks@ampf.com

84 Park Ave Suite G-103C | Flemington, NJ 08822

Office:908.788.2999 | Fax: 908.788.2850

Learn more at www.ameripriseadvisors.com/harvey.c.sacks

CA Insurance License #370456

We shape financial solutions for a lifetime®

An Ameriprise Financial Franchise. Ameriprise Financial Services, Inc. offers financial advisory services, investments,

insurance and annuity products. RiverSource® and Columbia ManagementSM products are offered by affiliates of

Ameriprise Financial Services, Inc., Member FINRA and SIPC.

© 2010 Ameriprise Financial, Inc. All rights reserved.

File # 96726

(3/10)

---

< PREV   MORE >