Page 6 - Palm City Spotlight - September '24

Page 6, Palm City Spotlight

FinanCial FoCus ®

Know The Risks Of Investing offer higher rates. Another type of risk associated with be appropriate, even if it doesn’t provide much in the way
of growth.
bonds is credit risk, which essentially describes the risk
– And Not Investing that the bond issuer may default, potentially disrupting For those long-term goals, though, you may need
your flow of interest payments. However, you can help to build an investment portfolio that contains growth
By Sally Sima Stahl mitigate this risk by purchasing investment-grade bonds potential and that reflects your personal risk tolerance
Investing involves risk that receive the highest credit ratings from independent and time horizon. Over time, your risk tolerance may
— and so does not investing. rating agencies. change. As you get closer to retirement, you may want
You should know how both • Certificates of deposit (CDs) – Although CDs are to take a somewhat more conservative approach — but
these types of risk can affect generally considered safe because their principal is you’ll always need some elements of growth.
your ability to reach your guaranteed, they do carry reinvestment risk — the risk that When you invest, risk can’t be eliminated, but it can
financial goals. you won’t be able to reinvest the proceeds of a maturing be managed. Keeping this in mind, consider a long-term
Let’s start with the CD at the same interest rate. To help protect against this investment strategy that allows for risk but also offers the
risks associated with risk, you could own CDs of varying maturities. When possibility of reward.
investing. There’s not a market rates are low, you’ll still have your longer-term This article was written by Edward Jones for use by
single investment risk CDs paying higher interest, and when market rates rise, your local Edward Jones Financial Advisor, Edward
because different types of you can reinvest the money from your maturing shorter- Jones, Member SIPC.
investments carry different types of risk. Here’s a look term CDs into the new, higher-paying ones. Edward Jones is a licensed insurance producer in
at three investment categories and some of the risks Now, let’s turn to a completely different type of all states and Washington, D.C., through Edward D.
connected with them: risk — the risk of not investing. And this risk is easy to Jones & Co., L.P., and in California, New Mexico, and
• Stocks – When you invest in stocks or stock-based understand: If you don’t invest, or if you consistently Massachusetts through Edward Jones Insurance Agency
mutual funds, you will incur the risk that the value of invest only in the most conservative vehicles, your money of California, L.L.C.; Edward Jones Insurance Agency of
your investments may decline. Stock prices can fall for may not grow enough to allow you to reach your important New Mexico, L.L.C.; and Edward Jones Insurance Agency
any number of reasons – lower-than-expected earnings, long-term goals, such as a comfortable retirement. of Massachusetts, L.L.C.
a change in management, change in consumer tastes, and Of course, this doesn’t mean you should never own Edward Jones, its employees, and financial advisors
so on. Although the historical trend for stocks has been conservative investments, including CDs and some types cannot provide tax advice. You should consult your
positive, there will always be periods when prices are of bonds. When you’re saving for a short-term goal, qualified tax advisor regarding your situation.
down. One way to help defend against this volatility is such as a down payment on a house, a wedding or a long Contact us at (561) 748-7600, Sally Sima Stahl, CFP ,
®
to hold stocks for the long term, rather than constantly vacation, you want the money to be there when you need AAMS , 1851 W. Indiantown Road, Ste. 106, Jupiter, FL
™
buying and selling, and to own a mix of stocks from it, so an investment that offers protection of principal may 33458.
different industries and even different countries.
• Bonds – When market interest rates rise, the value
of your bonds can decline because investors won’t pay
full price for them when they can get the newer ones that

Treasure Coast

Outdoors

Same Story Every Year:
Empty Boat With Angler

Missing

By Jim Weix
An empty boat with
no angler is like an
annual news story. It is
sad, particularly because
it is so easily prevented.
The latest tragedy
involved a missing
boater who departed
from the Lake Worth
Inlet. His unoccupied
boat was found 12 miles
east of Hobe Sound and his body was recovered 35
miles northeast of the Sebastian Inlet.
Some say you should never fish alone in the ocean.
That is a nice idea, but not a reality. Some of us fish
alone for solitude or because we can’t find someone
to go with. Tom Flynn, of Palm City, will tell you that
I fish alone because of my personality.
However, it is so easy to prevent the empty boat
tragedy. A lanyard attached to the kill switch and a boat
line tied around your waist will prevent this tragedy. To
eliminate tangles, attach the safety rope to something
solid near the kill switch and attach the kill switch
lanyard to the safety rope. You can also purchase a
small wireless engine kill switch that acts within two
seconds of a person going overboard.
Some will say you should always wear a personal
flotation device (PFD). The reality is that few people do.
Editor’s note: Jim Weix is an avid hunter, angler,
conservationist, as well as an outdoor writer. Jim is
included in the Wisconsin Waterfowl Association’s
Hall of Fame for helping restore thousands of acres
of wetlands. Jim is a broker associate with The Keyes
Company. He can be reached at (772) 341-2941 or by
email: jimweix@jimweix.com.