Each investment category offers a different growth potential and corresponding level of risk.

• Stocks can play an important role in your long-term growth strategy. As shown in the chart below, stocks have outperformed all other investments over the long term and have well outpaced inflation, but have also experienced dramatic swings in price.
• Bonds have shown much less price fluctuation, but have produced more moderate returns than stocks. (On the chart, the bond line shows a smooth, moderate rise.) If you're looking for a more stable investment and are comfortable with slower growth, bonds may be a suitable choice.
• U.S. Treasury bills have had the most price consistency, but over the long term, their modest returns have barely outpaced inflation.

This graph illustrates the hypothetical growth of inflation and a $1 investment in four traditional asset classes over the time period December 31, 1925 through December 31, 2000. The data assumes reinvestment of all income and does not account for taxes or transaction costs. Government bonds and Treasury bills are guaranteed by the full faith and credit of the United States government as to the timely payment of principal and interest. Stocks represent ownership in a corporation and their returns are not guaranteed. Small-company stocks are more volatile than large-company stocks, are subject to significant price fluctuations and business risks, and are thinly traded. Underlying data is from the Stocks, Bonds, Bills, and Inflation® (SBBI) Yearbook by Roger G. Ibbotson and Rex A. Sinquefield, updated annually. This is for illustrative purposes only, and not indicative of any investment. An investor can not invest directly in an index. Past performance is no guarantee of future results. March 1, 2001© 2001 Ibbotson Associates, Inc.

Source: Small Company Stocks-represented by the fifth capitalization quintile of stocks on the NYSE for 1926-1981 and the performance of the Dimensional Fund Advisors (DFA) U.S. Micro Cap Portfolio thereafter; Large Company Stocks - Standard & Poor's 500® which is an unmanaged group of securities and is considered to be representative of the stock market in general; Government Bonds- 20-year U.S. Government Bond; Treasury Bills-30-day U.S. Treasury Bill; Inflation- Consumer Price Index.