Shelby Shopper

Thursday, June 10-June 16, 2010 www.shelbyinfo.com Launch your “summertime” investment strategy KENNY WINCE, AAMS® Financial Advisor Edward Jones Now that summer is offi cially here, you may be looking forward to vacations, barbecues, ball games and other events of the season. But even while you’re engaged in these activities, you can’t forget about other aspects of your life — such as your plans to achieve your long-term fi nancial goals. However, your summer activities can actually pro- vide you with some valuable lessons on managing your investment strategy. Here are a few possibilities: • Plan your trip. If you’re taking a long road trip this summer, you’ll need to choose your vehicle, map out your route, determine how far you want to go each day and be quite certain of your desti- nation. And, essentially, the same is true for your investment strat- egy. You need to choose the right investment vehicles, familiarize yourself with your ultimate goals (such as a comfortable retirement) and chart your progress along the way. • Try to avoid getting burned. If you’re going to spend a lot of time outdoors this summer, you may need to apply some sunscreen. But you don’t have to be exposed to the sun to get “burned” — it can happen in the investment world, too. However, you can help prevent this from happening. How? By building a diversifi ed portfolio. If most of your money is tied up in just one type of investment, and that asset class falls victim to a downturn, your portfolio could take big hit. But while some investments are moving down, other may be moving up, so it makes sense to spread your money among a range of vehicles appropriate for your risk tolerance, investment goals and time horizon. Of course, diversifi cation, by itself, cannot guarantee a profi t or protect against loss, but it can help reduce the effects of volatility on your portfolio. • Keep yourself “hydrated.” When you’re outside on hot days, you can lose a lot of fl uids, so you need to drink plenty of liquids to remain hydrated. As an investor, you also need a reasonable amount of liquidity. In the severe market downturn of 2008 and early 2009, many investors found they had insuffi cient amounts of the type of liquid investments — cash and cash equivalents — that held up better than other, more aggressive vehicles. Furthermore, if you are relatively illiquid, you may have to dip into your longer-term invest- ments to pay for short-term emergency needs. Try to always keep an adequate level of liquidity in your holdings. • Dress for the season. As you go about your summer activities, you won’t always wear the same clothes. On hot days, you might want to wear shorts, but on cool, rainy days, you might need heavier items or even a raincoat. And as you go through life, you may need to adjust your investment approach depending on your individual fi nancial “season.” For example, early in your career, you might be able to afford to invest more aggressively, as you’ll have more opportunities to recover from the inevitable short-term downturns. As you close in on retirement, though, you may need to take a more conservative approach so that you can lower your investment risk when you need to access your money. So there you have them — some ideas for “summertime investing.” Use them wisely, and they may be of value to you long after summer is over. This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, its employees and Financial Advisors do not provide tax or legal advice. COMMUNITY FIRST fi nancial focus In light of the economic downturn of 2009, many people are pay- ing closer attention to their money. Whether controlling their own investments, reducing the amount invested or simply monitoring the nation’s fi nancial ups and downs more closely, concerned citizens across the country have begun to take a more involved role in their fi nancial futures. Perhaps no one could benefi t more from this increased awareness than the nation’s young people, who have witnessed fi rsthand the perils that can result from a faltering economy. That said, young people would be wise to investigate just what their bank offers with respect to individual accounts. The following are some of the basic accounts nearly every bank offers. * Checking account. Checking accounts allow account holders to make purchases, pay bills and even transfer money to a different account at a different bank. With a checking account, the primary means to withdrawing money is a personal check. Many banks do not allow cash to be withdrawn from a checking account at a teller’s window, though banks do allow account holders with an ATM card to withdraw money at an ATM machine. If an account holder must withdraw money from a checking account a teller’s window, oftentimes the bank requires the account holder to write a personal check made out to himself or herself. There is typically no limit to the number of withdrawals or purchases an account holder can make through his or her checking account. * Savings account. Savings account are typically more restrictive than checking accounts. While banks do allow withdrawals and deposits from savings accounts, oftentimes the number of withdraw- als are limited, and an account holder may incur penalties (such as a set fee) if he or she exceeds the withdrawal limit. Savings account holders cannot access their money via check. * Money market account. Money market accounts often mandate a minimum balance, but such accounts do boast higher interest rates than savings or checking accounts. Much like savings accounts, money market accounts limit the amount of cash withdrawals each month, and also place restrictions on the number of check with- OPEN YEAR ROUND APPOINTMENTS AVAILABLE ACCUTROL INCOME TAX SERVICE 717 Eastview St. • Shelby, NC NEW HOURS: Tues-Wed-Thurs 9am-4pm • Closed: Mon-Fri-Sat-Sun 704-487-5533 • 704-487-5311 Options may be available at your local bank drawals as well. However, such limits are often not a problem for money market account holders, as these are often seen as more investment-geared accounts and not typically relied on for everyday expenditures. * Certifi cates of deposit (CDs). A CD requires an account holder to make a deposit and leave money in an account for a specifi c amount of time. CDs typically pay a higher interest rate. Penalties for early withdrawal are relatively standard, though some banks allow account holders to withdraw interest, so long as the principal amount remains in the account until the established term is over. Baby-boomers and business start-ups An ever growing number of baby boomers are starting their own businesses. Some are motivated by the dream of being their own boss, while others want to take an idea about a product or service and make it a reality. For many boomers, becoming an entrepreneur is a key element of their retirement -- either out of fi nancial neces- sity or the desire to remain active in the business world. Regard- less of the reason, starting a successful enterprise requires careful planning. Choosing a business Starting a business that you know and love is always going to have a better chance of success. The years of experience you’ve accu- mulated in a fi eld are an invaluable asset and if you believe in your product, those skills and energy can be focused on marketing. Consulting a tax lawyer will help you determine which legal entity best fi ts your business and the tax advantages and disadvantages of operating as a sole proprietor, partnership, LLC, or Subchapter S-Corporation. JAMIE B RICHARD AAMS® Financial Advisor jamie.richard@edwardjones.com 1427 E Marion St Suite F Shelby, NC 28150 704-481-0388 JACK BUCHANAN AAMS® Financial Advisor jack.buchanan@edwardjones.com 203 S Battleground Ave Kings Mountain, NC 28086 704-739-2476 TOMMY PAYNE Financial Advisor tommy.payne@edwardjones.com 103 West Pennsylvania Ave. Bessemer City, NC 28016 704-629-3512 IF YOU’RE NOT AT YOUR LAST JOB, SHOULD YOUR 401(k) BE? Leaving a 401(k) behind could mean leaving it with no one to watch over it. We can explain your options, and if you’d like to roll your 401(k) over to an Edward Jones Individ- ual Retirement Account (IRA), we can help you do it with no taxes or penalties. To fi nd out about 401(k) options that make sense, call today. KENNETH M WINCE AAMS® Financial Advisor kenneth.wince@edwardjones.com 4801 Fallston Rd. Fallston, NC 28042 704-538-0487 MAKING SENSE OF INVESTING www.edwardjones.com Member SIPC DAVID R. SPARKS Financial Advisor david.sparks@edwardjones.com 1105 E. Dixon Blvd. Suite 4 Shelby, NC 28152 704-484-9189 MICHAEL O JOHNSON AAMS® Financial Advisor michael.johnson@edwardjones.com 320 2 East Graham St Shelby, NC 28150 704-484-2666 STEPHEN L PRICE AAMS® Financial Advisor stephen.price@edwardjones.com 1105 E Dixon Blvd Suite 4 Shelby, NC 28152 704-484-9189 Having what it takes Since any start-up is going to consume fi nancial resources, it’s important to be aware of actual costs and the time it will take to see a return. Savings accounts, the equity in a home and investment portfolios can be sources of revenue, but determine how much you can afford to tie up or possibly lose if the business fails. A partnership or outside investors are also possible sources of revenue, as are small business loans. Whatever the means of fi nancing, create a solid plan so you’ll know what to expect until you start generating an income. Defi ning and setting bench- marks It’s important to plan and track the progress of your busi- ness by setting benchmarks. This allows you to focus on any necessary adjustments to keep your enterprise moving forward at a measured pace. Even the best business plan can’t take into account all the possible snags or delays, so have contingencies in place to help you deal with them. Find the support you need You may know your product, but not necessarily the ins-and- outs of operating a successful business. Getting help with what you don’t know, such as setting up an effi cient offi ce or getting your Web site up and running, allows you to focus on the things you know and do best. 704/484-1047 - shelby shopper & info - Page 9 • Bookkeeping for Small Business • Tax Preparation for Individual Corporation and Partnerships

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