01-04-2017 Columns

Smart investing can help you keep moving toward your goals

 It’s Kentucky Derby time again. Even if you’re not much of a horse racing fan, you might appreciate all of the Derby’s pageantry – the mint juleps, the women’s beautiful hats, the singing of “My Old Kentucky Home,” and so on. But if you look beyond the hoopla, you’ll realize just how much work it takes to put on such an event. And the efforts of one group in particular – the jockeys – may be able to provide you with some lessons in life – and in investing.

For starters, consider the stamina the jockeys show as they steer 1,000-pound thoroughbreds around the track at Churchill Downs. Riding a racehorse is difficult, demanding and dangerous, requiring enormous endurance on the part of the jockey. And in many areas of life, you too will need to show some staying power. That’s certainly true when you invest. You need the fortitude to keep on investing, in good markets and bad ones, and during all the phases of your life – even after you’ve retired. It might not always be easy – during turbulent markets, you may be tempted to take a “time out” – but the most successful investors are usually the most persistent ones.

Here’s another trait shown by Kentucky Derby jockeys: vision. Jockeys must be able to spot the spaces they need to go through to gain the position they want. In other words, they see where they want to go. As an investor, you need this same ability. To illustrate: What do you want your retirement to look like? Will you stay close to home and volunteer? Will you travel the world? Will you even open a small business? You need to envision your goals if you’re going to achieve them.

Strategy is also important to jockeys. They all want to win the race, but they employ different methods. For example, three-time Kentucky Derby winner Calvin Borel’s strategy usually involves riding his horse on the rail at the inside of the track – so much so that his nickname is “Bo’rail.” As an investor, you need a strategy that’s appropriate for your goals, risk tolerance and time horizon. Such a strategy will involve choosing a suitable mix of investments, reviewing your portfolio’s progress at regular intervals, and making changes as necessary.

Finally, jockeys need knowledge. Is the track in good shape? How has the horse been behaving lately? What’s the weather going to be at post time? To be a good investor, you also need plenty of knowledge. You’ll need to pose some questions about individual investments you’re considering: How will this investment perform under different market environments? Will this investment fit well into my portfolio, or do I already have others similar to it? Is this an investment I can hold for the long term? And you’ll also need to learn about yourself as an investor: What is my tolerance for risk? Am I fully considering all my goals, such as college for my kids, my own retirement and the type of legacy I’d like to leave? There’s no shortage of questions for active investors to ask – and the best investors never stop learning.

You can learn a lot from Kentucky Derby jockeys. By applying some of their skills and habits to your investment activities, you can keep moving toward your goals – and you won’t even have to run in circles.

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

Improving charitable gaming regulations

 Across Southwest Michigan, we are very fortunate to have many wonderful charitable organizations doing great work in our communities. One avenue for these organizations to raise money for their good works is through charitable gaming, such as charity poker or other casino-style games. Unfortunately, charities have been struggling to raise money through gaming over the past several years because state bureaucrats have saddled them with unnecessarily burdensome rules. Under these rules, the amount of money raised through charitable gaming has dropped dramatically, affecting these groups’ ability to make a difference in communities across our great state.

To address this bureaucratic overreach, the State House recently passed legislation, with strong bipartisan support, designed to make the rules reasonable and fair. Certain licensing requirements will remain in place to make sure the system is safe and fair for charities and that games have reasonable limits on the amounts wagered and hours of operation. This new system of charitable gaming rules will protect against bad actors while allowing charitable organizations to raise the money they need to serve members of our community. I was proud to vote in favor of this legislation because state government should pursue policies that support our charitable organizations, not burden them.

As a reminder, the annual Senior and Veteran Expo hosted by state senators Tonya Schuitmaker and Margaret O’Brien and I will take place on Monday, May 8. The expo is from 9 a.m. to 1 p.m. at the Antwerp Township Activity Center located at 24821 Front Avenue in Mattawan. This is a completely free event. If you have any questions please do not hesi