Morningstar Advisor - August/September 2011 - (Page 53)

Morningstar Newsletter Builder ® SM Leverage Morningstar’s in-depth analysis, award-winning design, and editorial strength. Featuring FINRA-reviewed Morningstar articles, and employing full customization options, Morningstar Newsletter Builder is built with one goal in mind—to help financial advisors strengthen client relationships with personalized communications. 1 ABCo. Investment Updates 2 Users can create ‘Welcome’ notes for clients and prospects, publish outside content, or add their own articles and analysis. 3 Logos and co-branding options offer users the flexibility to add their firm’s logo, and the choice to co-brand with Morningstar. 4 Users can upload a headshot, and add particular investment strategies. 7 Default Morningstar disclosure is added to the back page of each newsletter. Users can also add their own company disclosure anywhere throughout the newsletter. May 2011 5 Investor Insights & Outlook Investment Updates from ABCo. Take Advantage of Tax-Deferred Accounts 6 A World of Opportunity As trade barriers continue to break down, the world economy has become a small neighborhood. Should investors seek to participate in this wave of globalization, or are they getting all they need here at home? Historically, foreign investments have acted in a significantly different way from domestic investments. When the U.S. market slumped, various opportunities abroad have prospered. An American investor who put some money into foreign markets may have reduced risk while still attaining attractive returns. With the spread of globalization, this benefit decreases as companies across the globe are acting more like each other. However, as the image illustrates, an investor who doesn’t take advantage of options outside of the United States is missing out on roughly half of the investable developed stock market opportunities in the world. 2 One of the main reasons why retirement accounts are so beneficial is the power of tax deferral. In a tax-deferred investment vehicle such as a 401(k) plan or an IRA, your earnings are not taxed until you begin withdrawing money from your account in retirement. Consider the image. A hypothetical value of $10,000 is invested in both a taxable and a tax-deferred account. The difference in value between the two accounts becomes quite substantial after 20+ years. For investors with a long investment time horizon, a tax-deferred portfolio is an excellent choice. Please keep in mind that once you begin to withdraw money from your retirement account, you will be taxed accordingly. However, since you will most likely earn less in retirement, withdrawals from a deferred portfolio may be taxed at a lower rate. Subscription (12 months of unlimted distribution for a single user license): $399 Product information/free guest access: contact and firm information. 5 Advisor Corner allows users the option 7 ABCo. BCo. ABCo. 3 ABCo. AB BCo. ABCo. 4 5 to include a brief bio about themselves and highlight information about their practice. 6 Article sidebar comments allow users to +1 866-608-9571 (Use Code: MRNBADA11) www.morningstar.com/goto/NLBuilder 1 Custom Mastheads can be loaded, or users can select from a variety of Morningstar graphics. summarize key points, tie action steps to an article, offer product solutions, or discuss ©2011 Morningstar, Inc. All rights reserved. The Morningstar name and logo are trademarks of Morningstar, Inc. Data displayed has been altered and is for illustrative purposes only. http://www.morningstar.com/goto/NLBuilder http://www.morningstar.com/goto/NLBuilder

Table of Contents for the Digital Edition of Morningstar Advisor - August/September 2011

Morningstar Advisor - August/September 2011
Contents
Contributors
Letter From the Editor
Simplicity and Design Matter
Do You Use ETFs Strategically or Tactically?
The Institutional Way
How to Analyze an ETF
Eyeing ETFs’ Next Chapter
Small-Cap/Large-Cap Flip-Flop?
Four Picks for the Present
Investment Briefs
Morningstar Investment Conference
Pitfalls of Peer Groups
A REIT Recovery, With a Catch
Turning Fund Distribution on Its Head
Here Come ETF Managed Portfolios
Circle These Picks Amid the Crop of New ETFs
ETF Analyst Favorites
Beware, the Accidental Portfolio Manager
It’s the Destination, Not the Vehicle
New Growth, Rooted in Experience
Better Ways to Look at ETFs
How to Better Manage Your Clients’ Future(s)
More Bargain Than Bubble
Cheap, Local, and On a Roll
Mutual Fund Analyst Picks
50 Most Popular ETFs
Undervalued Stocks With Wide Moats
First-Quarter Assets Hit an All-Time High
You Say You Want a Revolution?

Morningstar Advisor - August/September 2011

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