Page 22 - Lifestyles in Palm Beach Gardens - September '24

Page 22, Lifestyles in Palm Beach Gardens
Financial Focus ®

Know The Risks Of Investing CDs paying higher interest, and when market rates rise, to take a somewhat more conservative approach — but
you’ll always need some elements of growth.
you can reinvest the money from your maturing shorter-
– And Not Investing term CDs into the new, higher-paying ones. When you invest, risk can’t be eliminated, but it can
Now, let’s turn to a completely different type of be managed. Keeping this in mind, consider a long-term
By Sally Sima Stahl risk — the risk of not investing. And this risk is easy to investment strategy that allows for risk but also offers the
Inves ting involves understand: If you don’t invest, or if you consistently possibility of reward.
risk — and so does not invest only in the most conservative vehicles, your money This article was written by Edward Jones for use by
investing. You should know may not grow enough to allow you to reach your important your local Edward Jones Financial Advisor, Edward
how both these types of risk long-term goals, such as a comfortable retirement. Jones, Member SIPC.
can affect your ability to Of course, this doesn’t mean you should never own Edward Jones is a licensed insurance producer in
reach your financial goals. conservative investments, including CDs and some types of all states and Washington, D.C., through Edward D.
Let’s start with the bonds. When you’re saving for a short-term goal, such as a Jones & Co., L.P., and in California, New Mexico, and
risks associated with down payment on a house, a wedding or a long vacation, you Massachusetts through Edward Jones Insurance Agency
investing. There’s not a want the money to be there when you need it, so an investment of California, L.L.C.; Edward Jones Insurance Agency of
single investment risk that offers protection of principal may be appropriate, even New Mexico, L.L.C.; and Edward Jones Insurance Agency
because different types of if it doesn’t provide much in the way of growth. of Massachusetts, L.L.C.
investments carry different types of risk. Here’s a look For those long-term goals, though, you may need Edward Jones, its employees, and financial advisors
at three investment categories and some of the risks to build an investment portfolio that contains growth cannot provide tax advice. You should consult your
connected with them: potential and that reflects your personal risk tolerance qualified tax advisor regarding your situation.
• Stocks – When you invest in stocks or stock-based and time horizon. Over time, your risk tolerance may Contact us at (561) 748-7600, Sally Sima Stahl, CFP ,
®
mutual funds, you will incur the risk that the value of change. As you get closer to retirement, you may want AAMS , 1851 W. Indiantown Road, Ste. 106, Jupiter, FL 33458.
™
your investments may decline. Stock prices can fall for
any number of reasons – lower-than-expected earnings,
so on. Although the historical trend for stocks has been Medicare Corner With Kathy O
a change in management, change in consumer tastes, and
positive, there will always be periods when prices are
down. One way to help defend against this volatility is It’s That Time Of Year that you review this document – this year more than
to hold stocks for the long term, rather than constantly ever. This notice will tell you the new costs and any
buying and selling, and to own a mix of stocks from Again – Medicare Annual changes to your plan. You may incur higher premiums,
different industries and even different countries. higher medical maximum out of pocket limits,
• Bonds – When market interest rates rise, the value of Enrollment deductibles and copays in 2025. This letter presents
your bonds can decline because investors won’t pay full a side-by-side explanation of 2024 benefits and 2025
price for them when they can get the newer ones that offer Every year between benefits. Advantage plans may also have changes to the
higher rates. Another type of risk associated with bonds Oc t . 15 a n d De c . added benefits Medicare does not cover such as vision,
is credit risk, which essentially describes the risk that the 7, Medicare allows dental, hearing and over-the-counter products.
bond issuer may default, potentially disrupting your flow beneficiaries to make What about your supplement plan? There are no
of interest payments. However, you can help mitigate this changes to their plans. changes to the supplement benefits, but with increasing
risk by purchasing investment-grade bonds that receive the It is crucial that your drug costs, some people may want to take advantage
highest credit ratings from independent rating agencies. 2025 plan changes be of the free trial of the Advantage plan. This allows
• Certificates of deposit (CDs) – Although CDs are reviewed since Medicare you to try an Advantage plan for up to 12 months and
generally considered safe because their principal is is making significant still be guaranteed that you can go back to your same
guaranteed, they do carry reinvestment risk — the risk that changes for Jan. 1, supplement plan.
you won’t be able to reinvest the proceeds of a maturing 2025, that will affect all There are many other changes for the coming year.
CD at the same interest rate. To help protect against this prescription drug plans The good news is you can think about it early and
risk, you could own CDs of varying maturities. When and Advantage plans. prepare. I am a licensed insurance agent who specializes
market rates are low, you’ll still have your longer-term The biggest changes to Medicare rules include in Medicare plans and believes an educated and informed
a $2,000 cap on annual member medication costs consumer is the best client. If you are concerned or have
(previously no limit), a new maximum drug deductible questions about changes to your plan or want to know if
of $590, elimination of the coverage gap phase (donut there is something different that may better meet your
hole) and will offer the option to pay the maximum drug needs, you can get a professional plan review.
costs as a fixed monthly amount throughout the whole For a no cost or obligation plan review, please
year, rather than as they are incurred. call me, Kathy Olejniczak, (561) 212-7640. I
What do I do now? In late September, you will conduct reviews in person and on the phone. I speak
receive the Annual Notice of Change. It is imperative Medicare.