TAKE ADVANTAGE OF TIME How soon will you need the money? Is it earmarked for retirement, a child's future education, or travel in the next year? Along with determining your risk tolerance, establishing your time horizon and investing accordingly is critical. A long-term investment horizon can help minimize the impact of short-term market swings, allowing you to be more aggressive. If you're investing for the short term, a conservative approach is better.  STOCKS, BONDS, BILLS AND INFLATION, 1925-2002 Over longer periods of time, stock market fluctuations have historically smoothed themselves out. Past performance is no guarantee of future results. Hypothetical value of $1 invested at year-end 1925. Assumes income reinvestment but not taxes or transaction costs. Average return represents compound annual return. Large company stock — Standard & Poor's 500® Composite Stock Price Index common stocks representative of stock market; small company stock — fifth capitalization quintile of stocks on NYSE 1926-1982, performance of DFA Small Company Fund thereafter; government bonds — 20-year U.S. government bonds; 30-day U.S. T-bills; inflation — Consumer Price Index. Indices are unmanaged and cannot be invested in directly. Stock values fluctuate. Bonds offer fixed returns and principal values if held to maturity. Government bonds and bills are guaranteed as to timely payment of principal and interest. Source: © 2003 Ibbotson Associates Inc., a wholly owned subsidiary of Morningstar, Inc., Inc. Used with permission. All Rights Reserved.

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