Quote of the Month

"The whole world steps aside for the man who knows where he is going." Anonymous

RSG welcomes you to the September 2001 edition of The Retirement Strategist. We hope you enjoy our actionable ideas for implementing a better retirement stategy. Remember that time can be your greatest friend; the sooner you implement excellent retirement savings ideas, the better.

1. Questions From Members
2. Timely Investment Tip$: SunAmerica BioTech/Health 30 Fund - A Must Read!
3. Fiscal Therapy: Retirement Plan Contribution Levels for Business Owners
4. Retirement Strategies Group Service Highlight: How We Can Help You

QUESTIONS FROM MEMBERS

Q.	I have self-employed income and am wondering if I can establish a retirement plan for that money? Greensboro, NC
A.	Of course you can! By establishing a qualified retirement plan you can receive several tax- advantages. Depending on what type of plan you establish, you are able to put a portion of that money away on a pre-tax basis, lowering your taxable income. Additionally, you are allowing that money to grow tax-deferred until you retire. Being self-employed allows for many choices when deciding what type of retirement plan you can establish - and it's important to know your options.
Q.	I have read it is important to rebalance your portfolio, but I have been investing for quite sometime now and have never thought about it. Is this something I should consider? Fresno, CA
A.	Rebalancing your portfolio is the process of ensuring that your investment allocations remain consistent. Often times, investors will set up an allocation and forget about it. Unfortunately, the investments you chose will perform differently and over time the percentages you've allocated may change from your initial goal. You may ask though, "Is this really a problem?" It is if you want to maintain a constant degree of exposure to risk. Rebalancing your portfolio is something you should do periodically with your investment advisor.

TIMELY INVESTMENT TIP$

The SunAmerica BioTech/Health 30 Fund generally will invest in companies that the manager believes exhibit the following characteristics:

High Growth Potential Large Accessible Market Highly Proprietary Products History of Operating Success Effective Management Teams

Leading Edge Technology High Degree of Intellectual Property Protected Patent Portfolio Viable Business Model

Manager - Brian Clifford

Joined SunAmerica in March 1998 as co-manager of the SunAmerica Midcap Growth Fund and as a member of the Large Cap Equity Team. The Midcap Fund staged a dramatic turnaround throughout the course of the year and elevated its Lipper ranking from the bottom 95th percentile to the top 10th percentile. The large cap team focuses on the Balanced Fund, the Growth and Income Fund, and the Blue Chip Fund. All of these funds finished 1998 in the top third of their respective Lipper categories. Brian focuses on growth equities, with particular emphasis on the healthcare and technology sectors. He uses a research intensive, bottoms-up approach to investment decisions and evaluates holdings on a security by security basis. Brian is regularly invited to speak on CNBC, CNN, CNNfn, and Bloomberg TV.

Prior to joining SunAmerica, Brian was a Portfolio Manager with Morgan Stanley Dean Witter Intercapital. He was on a two-person team that managed over $1 Billion in assets including a dedicated healthcare fund and a capital appreciation fund. The Health Sciences Trust Fund was ranked the number one healthcare fund in the country in 1995 by Lipper with a total return of over 63%. Before becoming a portfolio manager, Brian was an equity analyst and an investment management associate with Morgan Stanley Dean Witter.

Brian is currently a Level III Chartered Financial Analyst Candidate. He graduated from the Robbins School of Business at the University of Richmond with a Bachelor of Science degree and a concentration in Accounting.

*Past performance is not a guarantee of future results. Information provided by SunAmerica brochures. The SunAmerica Style Select Series Focus Portfolios are available upon request by prospectus only, which should be read carefully before investing.

Retirement Plan Contribution Levels for Business Owners

This month we will discuss the different types of retirement plans available to business owners and primarily focus on the maximum contribution amounts allowable under these plans.

There are probably many more choices than you are aware of for employer-sponsored retirement programs. Although only a few, or even just one of these plans, will fit your particular situation, it is good to be educated as to what is available in the marketplace.

TYPE OF PLAN	MAXIMUM POSSIBLE CONTRIBUTION
Simple IRA	$6,000 or 100% of compensation (whichever is less)
Simple 401(k)	$6,000 or 25% of compensation (whichever is less)
SEP	$25,500 or 15% of compensation (whichever is less)
Profit Sharing	$25,500 or 15% of compensation (whichever is less)
Keogh	$30,000 or 25% of compensation (whichever is less)
401(k)	$30,000 or 25% of compensation (whichever is less)
Money Purchase	$30,000 or 25% of compensation (whichever is less)
Defined Benefit	$30,000 and above
Deferred Compensation	$30,000 and above

There are many criteria that must be met to qualify for the maximum contribution levels in these different retirement plans. Some of these criteria include the type of industry, number of employees, age of owner, and compensation levels of your business. The difference in these plans is not only contribution amounts but also administrative work and expenses. Your individual situation will determine which plans are available to you and which plans will be eliminated. As you can see, there are many things to consider when deciding which retirement plan to use. It is a very important decision and should not be made without careful consultation because it will undoubtedly affect your level of financial comfort in retirement.

You have already taken the first step in requesting to receive our monthly e-bulletin. If you would like additional information including a free review of your current portfolio, information on brokerage services, mutual funds, tax-deferred annuities, or have a question on a specific financial program, please contact Retirement Strategies Group.