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April 11, 2013     The Carlisle Citizen
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Page Twelve The Carlisle Citizen Thursday, April 11, 2013 Is Your Portfolio Truly Diversified? Submitted by Joe Schettler, Rep for Edward Jones in Carlisle Life is full of ups and downs -- and the financial markets are no different. As an investor, you're no doubt happy to see the "ups" -- but the "downs" can seem like a real downer. Isn't there any way to help smooth out the vola- tility in your investment portfolio? First of all, to cope with volatility, it's helpful to know what causes it -- and there can be many causes. Computers that make trades in milliseconds, based on mathematical models, are sometimes blamed for intraday volatil- ity, but large price swings can also occur following the release of government eco- nomic reports, such as those dealing with unem- ployment and housing starts. Global events, such as the European economic malaise, can also send the. financial markets into a tizzy. By being aware of the im- pact of these events, you can see that the workings of the markets -- especially their volatility -- may not be as mysterious as you thought. Still, while know- ing the causes of volatility can help you prepare for market swings, it won't blunt their impact on your portfolio. To do that, you need to create a diversified mix of investments because your portfolio can be more susceptible to negative price movements if you only own one type of asset. To illustrate: If you owned mostly bonds, and interest rates rose sharply, the value of your bonds would likely drop, and your portfolio could take a big hit. But if you owned stocks, bonds, government securities, certificates of deposit (CDs) and other in- vestment vehicles, the rise in interest rates would probably affect your portfo- lio less significantly. Unfortunately, many in- vestors think that if they own a few stocks and a bond, they're diversified. But you canactually extend your diversification through many levels -- and you should. For the equity portion of your portfolio, try to own stocks representing many market sectors and industries. Also, consider international stocks. And rather than just owning U.S. Treasury bonds, con- sider corporate bonds and municipal bonds, and di- versify your fixed-income holdings further by pur- chasing short-term, inter- mediate-term and long- term bonds. Work with your financial advisor to determine the mix of asset classes and investments that are appropriate for your financial goals and objectives. How you ultimately diver- sify your portfolio depends on your risk tolerance, time horizon and long-term goals -- there's no one "cor- rect" asset mix for every- one. And over time, your diversification needs may change. To cite one ex- ample, as you enter your retirement years, you may need to increase your per- centage of income-produc- ing investments while pos- sibly reducing the amount of growth investments you own. These growth-ori- ented investments tend to be more volatile, and you may want less volatility during your retirement. However, even during re- tirement, you will need to own a certain percentage of growth investments to pro- vide you with the growth potential you'll need to stay ahead of inflation. Keep in mind that diver- sification can't guarantee a profit or protect against loss. Nonetheless, building a diversified portfolio may help take some of the vola- tility "out of investing -- so look for diversification op- portunities whenever pos- sible. This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Don't forget to make your 2012 IRA contribution. Joseph H Schettler Financial Advisor 90 Hwy 5 Carlisle, IA 50047 515-989-4100 Member SIPC www.edwardjones.eom Edward Jones MAKING SENSE OF INVESTING Mississippi River Travel Show Sunday, April 21, 2013 2 - 4 pm at Johnnie & Mikes Pizza 130 S 1st Street Carlisle, Iowa Mississippi River Adventure 8 Days Featuring a 4 Night Cruise on the American Queen Departure Date: October 2, 2013 highlights ilwlude: Memphis Graceland * Tupelo * Jackson Natchez Cruise the Mississippi River Vicksburg Helena Coilette Tours RSVP Karen Baldridge Kappelman 515-480-3707 Slices of Life by Jill Pertler Copyright 2010 A return to holidays For the last three years I've avoided holidays. Not the holidays in December. Every single holiday - all 12 months of them. This behavior stems from a psy- chological compensation is- sue (as most things do). Some people thrive on holiday hoopla - and not only those who are able to grow long white beards or are in possession of a size XL bunny suit. I'm talking, of course, about teachers. First grade teachers are pros at making a big deal out of Johnny Appleseed Day, Elephant Apprecia- tion Day, National Peanut Butter and Jelly Day and whether March comes in like a lamb or lion. Give a first grade teacher a plain old rock and a big pot of water and she'll make a party out of it. Guaranteed. My mom was a first grade teacher with unsur- passed talent for holiday hullabaloo. After my sister and I were born, she traded in her classroom of 30 stu- dents for two daughters, but continued to display holiday talents at an 01ym- pic level. If they gave med- als for holiday triumphs, my mom would have been weighed down in gold. When I was a kid, this worked out pretty well for me. I basked in my mom's holiday splendor. We looked for shadows on Groundhog Day. We learned about some man with a bucket from Nan- tucket on National Limer- ick Day. We swapped the sugar with the salt on April 1. Obscure holiday were fun, but my mom's sparkle shined the brightest on the biggies. Food, candy, pre- sents and ddcor all over- flowed - often in a literal sense. If two daughters brought out the holiday ge- nius of my morn, you can only imagine what the ar- rival of grandchildren did to the equation. It was ex- ponential. I wasn't born with the holiday gene. I didn't have the organizing and plan- ning talents of my morn, but I was happy to follow along and put out the pickle tray, blow up the balloons or hang the garlands wher- ever she told me to put them. And so the fun continued, until Alzheimer's disease joined our family get- togethers and holidays be- came less celebratory and more bittersweet. Those of us close to my mom took on what we could, but hers were big shoes to fill. Three years ago, my morn spent her last holiday with us. Three years ago, I started avoiding them. Ybu don't have to be Sigmund Freud to figure out why. Three years is a long time - and a lot of holidays. Of course I couldn't avoid ev- ery one of them completely because I wasn't even con- scious of my behavior at first. Once I figured out my motives, I was appalled and a little embarrassed; so I Shielded them from oth- ers. I became a holiday minimalist - doing as little as possible to get by with- out arousing suspicion. Time is a universal healer and three years transports a person from one level of grief to another. Thank goodness. Holidays are a part of life; avoiding life is no way to live. Last weekend, we loaded up our family and made the two-hour trek to spend a holiday with my dad and sister and her family. The event wasn't the super- planned, over-the-top whirlwind affair of my mom's heyday, but my sis- ter did make some killer cheesy potatoes. And we got to spend time together -talking, laughing, sharing stories and making memo- ries like families do. At one point, as my sis- ter related one of her sto- ries, a certain expression and intonation in her voice reminded me of our mom and I realized we are more like her than we think. Per- haps neither of us will ever make it into the holiday hall of fame, but we both carry parts of our mom with us wherever we go. And when we get together to celebrate a holiday, she is there with us. And she is smiling. Jill Pertler is an award- winning syndicated colum- nist, playwright and author of "The Do-It-Yourselfer's Guide to Self-Syndication" You can read more columns at the Slices of Life page on Facebook. For all kinds of people, for all kinds of reasons ... celebrating /iiiiiiiiiiiiiiiiiiiii!iiii!iii!iii!iiiiiiiiiiiiiiiiiiiiii Pekin Insurance TM and your professional Pekin Insurance Agent understand there's more to insurance than the policy. It's the people who matter most. 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