Submitted by
Rachael Siegfriedt

Investing for your future is important – but it can be challenging. How can you navigate the complexities of the financial markets and make the right decisions for your situation?

Fortunately, you don’t have to go it alone. A financial advisor can help you in these key areas:

• Developing a personal financial strategy – Many factors go into creating a long-term financial strategy. What is your risk tolerance? When would you like to retire? What sort of retirement lifestyle have you envisioned? What are your other important goals? A financial advisor will ask these and other questions in getting to know you, your family situation and your hopes for the future. By taking this type of holistic approach, a financial advisor can help you create financial and investment strategies appropriate for your needs.
• Avoiding mistakes – A financial advisor can help you avoid costly investment mistakes. One such mistake is attempting to “time” the market. Investors pursue market timing when they try to “buy low” and “sell high.” In theory, of course, this is a great idea – if you could consistently buy investments – stocks, in particular – when their price is down and then sell them when the price has risen significantly, you’d always make some tidy profits.

The main drawback to this technique, though, is that it’s virtually impossible to follow, especially for individual investors. Nobody, not even professional money managers, can really predict with any accuracy when stock prices have reached high or low points. Consequently, those who try to make these guesses could miss out on opportunities.

For example, investors who are determined to buy low might not want to purchase investments when the market is up – but this practice could lead to taking a “time out” from investing just when the market is in the midst of a rally. But a financial advisor can steer clients toward a more disciplined approach, such as buying quality investments and holding them for the long term, regardless of the ups and downs of the market.

• Checking progress toward your goals – If you were to invest without any guidance, you might not be looking at your investments’ performance with the proper perspective. For example, some investors simply compare their portfolio returns against a widely used market index, such as the S&P 500. But this comparison may not be that useful. The S&P 500 only measures the stock prices of the leading publicly traded U.S. companies by market capitalization – but your investment portfolio, if properly diversified, will include investments other than U.S. stocks, such as bonds, government securities, international stocks and more.

Consequently, the performance of your portfolio won’t track that of the S&P 500 or any other single index, either. Your financial advisor can help you employ more meaningful benchmarks, such as whether your portfolio’s progress is on track toward helping you meet your financial goals. Also, a financial advisor will review your portfolio and investment strategy regularly to determine what changes, if any, need to be made, either in response to the markets or to events in your life.

Investing for your future can be exciting and rewarding — and you can feel more confident in your decisions when you have someone helping you along the way.

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

Edward Jones, Member SIPC.

Rachael Siegfriedt’s office is located at 82 Maple Ridge Dr., in Monmouth. Her email address is Rachael.Siegfriedt@edwardjones.com.

submitted by Sasha Fitzpatrick

You may have heard about “sustainable investing.” But if you’re not familiar with it, you may have some questions: What does it involve? Is it right for me? Can I follow a sustainable investing strategy and still get the portfolio performance I need to reach my goals?

Sustainable investing can be defined in different ways, with different terminologies. However, one way to look at a sustainable approach is by thinking of it as investing in a socially conscious way which may involve two broad categories: environmental, social and governance (ESG) investing and values-based investing.

As its name suggests, ESG investing incorporates a broad range of environmental, social and governance risks and opportunities, along with traditional financial measures, when making investment decisions. This approach may have a neutral impact on performance because it maintains a focus on managing risk, traditional fundamental analysis and diversification. Here’s a quick look at the ESG elements:

Environmental – Companies may work to reduce carbon emissions, invest in renewable energy, decrease pollution and conserve water resources.

Social – A business may promote gender and pay equality within its workforce, and maintain positive labor relations and safe working conditions for employees.

Governance – Companies distinguished by good governance may institute strong ethics policies, provide transparent financial reporting and set policies to ensure it has an independent, objective board of directors.

You can pursue an ESG investing approach through individual stocks, mutual funds or exchange-traded funds (ETFs), which hold a variety of investments similar to mutual funds, but are generally passively managed – that is, they do little or no trading. As an ESG investor, you don’t necessarily have to sacrifice performance because ESG investments generally fare about as well as the wider investment universe. Some investments may even gain from the ESG approach. For example, a company that invests in renewable energy may benefit from the move away from fossil fuel sources.

Now, let’s move on to values-based investing. When you follow a values-based approach, you can focus on specific themes where you may choose to include or exclude certain types of investments that align with your personal values.

So, you could refrain from investing in segments of the market, such as tobacco or firearms, or in companies that engage in certain business practices, such as animal testing. On the other hand, you could actively seek out investments that align with your values. For instance, if you’re interested in climate change, you could invest in a mutual fund or ETF that contains companies in the solar or clean energy industries.

One potential limitation of values-based investing is that it may decrease the diversification of your portfolio and lead to materially lower returns due to narrowly focused investments, prioritization of non-financial goals and too many exclusions.

Ultimately, if you choose to include a sustainable investing approach, you will want – as you do in any investing scenario – to choose those investments that are suitable for your goals, risk tolerance and time horizon.

If sustainable investing interests you, give it some thought – you may find it rewarding to match your money with your beliefs.

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

Edward Jones, Member SIPC

submitted by Sasha Fitzpatrick

Benjamin Franklin once said, “If you fail to plan, you are planning to fail.” But as you chart your financial course, what steps should you take to help you keep moving forward to where you want to go?

Consider these suggestions:

Establish and quantify your goals. Throughout your life, you’ll have short-term goals, such as an overseas vacation or a home renovation, and long-term goals, the most important of which may be a comfortable retirement. You’ll want to identify all your goals and put a “price tag” on them. Of course, it’s not always possible to know exactly how much it will cost to achieve each goal, but you can develop reasonably good estimates, revising them as needed.

Create an investment strategy to achieve your goals. Once you know how much your goals will cost, you can create the appropriate savings and investment strategies to potentially help you reach the needed amounts. For your retirement goal, you will likely need to contribute regularly to your IRA and 401(k) or other employer-sponsored retirement plan. But for shorter-term goals, you may need to explore other types of investments. For all your investment moves, though, you’ll need to consider your risk tolerance. You won’t want your portfolio to have such a high-risk level that you’re constantly uncomfortable with the inevitable fluctuations of the financial markets. On the other hand, you won’t want to invest so conservatively that you jeopardize your chances of achieving the growth you need to reach your goals.

Control your debts. We live in an expensive world, so it’s not easy to live debt-free. And some debts, such as your mortgage, obviously have value. But if you can control other debts, especially those that carry high interest rates, you can possibly free up money you can use to boost your savings and investments.

Prepare for obstacles. No matter how carefully you follow the strategies you’ve created to achieve your goals, you will, sooner or later, run into obstacles, or at least temporary challenges. What if you incur a large, unexpected expense, such as the sudden need for a new car or a major home repair? If you aren’t prepared for these costs, you might be forced to dip into your long-term investments – and every time you do that, you might slow your progress toward achieving your goals. To help prevent this, you should build an emergency fund containing several months’ worth of living expenses.

Review your strategy. When you first created your financial strategy, you might have planned to retire at a certain age. But what if you eventually decide to retire earlier or later? Such a choice can have a big impact on what you need from your investment portfolio — and when. And your circumstances may change in other ways, too. That’s why it’s a good idea to review your strategy periodically to make sure it still aligns with your up-to-date objectives.

None of us can guarantee that our carefully laid plans will always yield the results we want. But by taking the right steps at the right times, you can greatly improve your chances.

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

Edward Jones, Member SIPC

submitted by Sasha Fitzpatrick

In just a few weeks, students will be heading off to college – and parents will be getting out their checkbooks. Without a college-bound student in your home right now, you might not be thinking much about tuition and other higher education expenses, but if you have young children, these costs may eventually be of concern – so how should you prepare for them?

It’s never too soon to start saving and investing. Unfortunately, many people think that they have a lot of “catching up” to do. In fact, nearly half of Americans say they don’t feel like they’re saving enough to cover future education expenses, according to a 2022 survey conducted by financial services firm Edward Jones with Morning Consult, a global research company.

Of course, it’s not always easy to set aside money for college when you’re already dealing with the high cost of living, and, at the same time, trying to save and invest for retirement. Still, even if you can only devote relatively modest amounts for your children’s education, these contributions can add up over time. But where should you put your money?

Personal savings accounts are the top vehicle Americans are using for their education funding strategies, according to the Edward Jones/Morning Consult survey. But there are other options, one of which is a 529 plan, which may offer more attractive features, including the following:

Possible tax benefits – If you invest in a 529 education savings plan, your earnings can grow federally income tax-free, provided the money is used for qualified education expenses. (Withdrawals not used for these expenses will generally incur taxes and penalties on investment earnings.) If you invest in your own state’s 529 plan, you may receive state tax benefits, too, depending on the state.

Flexibility in naming the beneficiary – As the owner of the 529 plan, you can name anyone you want as the beneficiary. You can also change the beneficiary. If your eldest child foregoes college, you can name a younger sibling or another eligible relative.
Support for non-college programs – Even if your children don’t want to go to college, it doesn’t mean they’re uninterested in any type of postsecondary education or training. And a 529 plan can pay for qualified expenses at trade or vocational schools, including apprenticeship programs registered with the U.S. Department of Labor.

Payment of student loans – A 529 plan can help pay off federal or private student loans, within limits.

Keep in mind that state-by-state tax treatment varies for different uses of 529 plans, so you’ll want to consult with your tax professional before putting a plan in place.

Despite these and other benefits, 529 plans are greatly under-utilized. Only about 40% of Americans even recognize the 529 plan as an education savings tool, and only 13 percent are actually using it, again according to the Edward Jones/Morning Consult study.

But as the cost of college and other postsecondary programs continues to rise, it will become even more important for parents to find effective ways to save for their children’s future education expenses. So, consider how a 529 plan can help you and your family. And the sooner you get started, the better.

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC.

Investors should understand the risks involved of owning investments. The value of investments fluctuates and investors can lose some or all of their principal.

submitted by Sasha Fitzpatrick

The long-running coronavirus pandemic has fueled a lot of anxieties – including financial ones. But some people have had far fewer worries than others.

Consider this: Among those investors who work with a financial advisor, 84% said that doing so gave them a greater sense of comfort about their finances during the pandemic, according to a survey from Age Wave and Edward Jones.

Of course, many people experience investment-related fears even without a global health crisis, and that’s probably not surprising, given the periodic volatility of the financial markets. But financial guidance can come in handy during relatively normal times, too.

A financial professional can help you …

• Look past the headlines – Inflation, interest rates, pandemics, elections – there’s always something in the news that could affect the investment world in the short term. But by helping you construct a portfolio that’s built for the long term and reflects your goals, risk tolerance and time horizon, a financial advisor can enable you to look past the headlines.
• Avoid emotional decisions – Many people let their emotions drive their investment choices. When the market goes through a downturn and the value of their investments drops, they sell to “cut losses,” even though these same investments may still have good business fundamentals and promising futures. Conversely, when the market is on an uptick, some poeple chase after “hot” investments, even when they become overpriced and may have very little room to grow. But a financial advisor can help keep you from making these fear- and greed-based actions by only recommending moves that make sense for your situation.
• Work toward multiple goals – At various times in your life, you may have simultaneous financial goals. For example, you could be investing for a retirement that’s decades away, while also trying to save for a child’s college education. A financial professional can suggest ways you can keep working toward both objectives, in terms of how much money you can afford to invest and what types of savings and investment vehicles you should consider.
• Prepare for the unexpected – Most of us did not need a pandemic to remind us that unexpected events can happen in our lives – and some of these events can have serious financial impacts on us and our loved ones. Do you have adequate life insurance? How about disability insurance? And if you ever needed some type of long-term care, such as an extended stay in a nursing home, how would you pay for it? A financial advisor can evaluate your protection needs and recommend appropriate solutions that fit within your overall financial strategy.
• Adapt to changing circumstances – Over time, many things may change in your life – your job, your family situation, your retirement plans, and so on. A financial professional can help you adjust your financial strategy in response to these changes.

Achieving your financial goals may present challenges, but it doesn’t have to cause you years of worry and distress – as long as you get the help you need.

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.
Edward Jones, Member SIPC.