12-27-18 Columns

Year-end: Put this year’s investment performance in perspective How can you assess your investment portfolio’s performance in 2018? The year was full of wild swings in the financial markets, so your own results may well have bounced around quite a bit, too. But you can still get a clear picture of how you did if you keep your investments’ returns in the proper perspective – by making sure your expectations are relevant, realistic and reviewed. Let’s look at how these terms can apply to a meaningful evaluation of your investment progress: Relevant – Many investors compare their portfolio returns to a popular market index, such as the S&P 500. But this comparison is not really valid for a variety of reasons. For one thing, indexes are typically not diversified across different types of investments – the S&P 500, for instance, only tracks large U.S. companies. Your portfolio should consist of a broad range of investments: domestic and international stocks, bonds, mutual funds, government securities and so on, appropriate for your goals and risk tolerance. Also, your portfolio’s performance will be affected by your contributions and withdrawals, while market index returns are not. So, instead of measuring your results against an index – and possibly worrying about underperformance – you’re better off establishing relevant expectations of your investment returns, based on your specific goals. So, for example, if you want to retire at age 62, you’ll need to know the rate of return you need to achieve this goal – and then compare that desired return with your actual results. Realistic – Ideally, of course, you’d like really high returns with really low risk – but that’s really not feasible. To get high returns, you’ll need to invest aggressively, which means you’ll need your portfolio to be heavily weighted in stocks. However, stocks are also riskier than more conservative investments, such as bonds or government securities. So, you’ll need to be realistic in what you can anticipate from your portfolio. You can shoot for high returns and accept the higher level of risk, or you can lower your expectations in exchange for greater stability. Reviewed – The performance of the financial markets – and also your own portfolio – will fluctuate from year to year. Consequently, it’s important to review your portfolio’s results and the progress you’re making toward your goals on a regular basis, possibly with the help of a financial professional. In these reviews, you may conclude that you’re doing fine, or you might discover that you need to rebalance your portfolio by realigning your investments with your goals and risk tolerance, or perhaps make other adjustments – such as changing the amount you invest – to get you back on track. In addition, you may even need to re-evaluate these goals in response to changes in your life – a new job, marriage, new child, and so on – as these changes could affect the rate of return you need from your investments. As you look back on 2018, and look forward to 2019 and beyond, take a holistic approach to how you evaluate your investments’ performance. By looking for relevance, being realistic about what you can expect, and reviewing your portfolio in the context of your goals, risk tolerance and changing circumstances, you can gain a thorough understanding of where you are, where you want to go – and how you can help yourself get there. This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

Thank you all for the amazing chance to serve I am truly thankful and blessed to have had the opportunity to serve the people of Southwest Michigan, who entrusted me to be their voice in the state House and Senate for 14 years. It has been a privilege to work with truly amazing people throughout the region who were dedicated to improving our state and making a positive difference in the lives of so many Michigan residents. I am a proud product of Southwest Michigan, yet I am continually amazed by the resilience, ingenuity and faithfulness of our people and what they exhibit every day in their hard work. We have our challenges, but we meet them with a tremendous intensity and an interest in success. During my time in the Senate, we have built a positive environment for long-term growth. As a result, per capita income, job creation and economic productivity are up, and crime, state debt and unemployment are down. We have revitalized our state from one where it was hard for young people to find a job to one where employers are having a hard time finding enough workers to fill new jobs. We were successful in enacting bipartisan reforms to focus our criminal justice system on lowering recidivism and keeping Michigan safe and passing Erin’s Law to help protect children from sexual abuse and give survivors a voice. I pray that I have, while certainly imperfectly, strived each day to care for the whole person and to seek the will and the good of others. This active and intentional effort has been my single objective while working for you. Thank you all for the amazing chance to serve the people of Southwest Michigan. It has been the greatest honor of my life. God bless you all.

Merry Christmas and Happy Holidays This week, folks will once again brave the crowded roads and airports to reunite with loved ones across the country in celebration of the Christmas holiday season. Let us give a moment’s pause to reflect upon the countless blessings in our lives and offer a prayer of gratitude. The holidays are a special time of year when folks are able to gather with friends, family members, and loved ones to celebrate and reflect. While it is easy to get caught up in the day-to-day grind, the holiday season offers us fresh perspective and reminds us of all that we have to be grateful for. We also must keep in mind the brave men and women of our armed forces who are not able to be home with us this year. We owe our courageous services members, and their loved ones, a tremendous debt of gratitude for the countless sacrifices they have made for our country and for our freedoms. Our thoughts and prayers are indeed with them daily, but particularly around the holiday season. We look forward to their safe return home. My wife Amey and I would like to wish you a safe and joyful holiday season in the comfort of family and friends. Merry Christmas, happy New Year, and God bless. To learn more about important legislative issues, please visit my website: upton.house.gov or call my offices in Kalamazoo (269-385-0039), St. Joseph/Benton Harbor (269-982-1986), or Washington, D.C. (202-225-3761).

Healthy New Year The holidays may still not be over, but now is the time to start thinking about how you can keep your resolutions this year and make 2019 your healthiest year ever. Make an appointment for a check-up, vaccination, or screening. Regular dental and medical exams and tests can help find problems before they start. They also can help find problems early, when your chances for treatment and cure are better. This includes keeping up-to-date on all vaccinations and cancer screenings. It’s not too late for flu shots, so if you haven’t gotten one yet, take the time to get vaccinated against the flu. Wash your hands often with soap and water to prevent the spread of infection and illness. Hand washing involves five simple and effective steps – wet, lather, scrub, rinse, and dry. Sicknesses like norovirus (the “stomach flu”), salmonella, E.coli, and some respiratory viruses are spread by germs traveling into your mouth via your hands. Make healthy food choices and get active. A healthy eating plan emphasizes fruits, vegetables, whole grains, and low-fat dairy products. It also includes lean meats, poultry, fish, beans, eggs, and nuts, and is low in saturated fats, trans fats, cholesterol, salt (sodium), and added sugars. Get active! Start small – try taking the stairs instead of the elevator, or parking further from your destination. Consider mall walking if the weather is cold or icy. Be smoke free. If you are ready to quit, call 1-800-QUIT-NOW (also Spanish line) for free resources, including free quit coaching, nicotine medications, a free quit plan, free educational materials, and referrals to other resources where you live. Get enough sleep. If not getting enough sleep is a regular part of your routine, you may be at an increased risk for obesity, type 2 diabetes, high blood pressure, coronary heart disease and stroke, poor mental health/depression, and even early death. Adults need seven or more hours per night. Try to keep bed time and waking times consistent, even on weekends. Keep your bedroom dark, quiet, and at a comfortable temperature. Avoid caffeine, alcohol, and electronic devices before bed time.

Year in review It has been a great honor to serve as your State Representative over the past two years. As 2018 draws to a close, I am pleased to report that for the entirety of my first term I have maintained a perfect voting record, not missing any votes in committee or on the floor of the House. My job is to represent you and showing up to vote on every issue ensures that your voice is heard in Lansing. I also wanted to share with you some highlights of what I have been working on as your voice in Lansing. Over the past two years we have made record investments in our schools and in the skilled trades, giving students more options to learn the skills necessary to have a successful career. We have also made record investments in our roads and bridges. While our roads cannot all be fixed overnight, we are making progress on getting our roads into better shape. We have made these important investments while continuing to pay down debt and pass balanced budgets in a timely manner. I have also had legislation signed into law to give schools more options when they are looking to save money through energy efficiency upgrades; streamline and remove red tape from the process broadband companies have to go through while working to expand broadband service; clean up outdated statutes; and improve how we educate our students about opioids. Please continue to reach out to me whenever I can be of assistance to you. If you have any questions or concerns please do not hesitate to contact my office toll free at 1-800-577-6212 or via email at BethGriffin@house.mi.gov. I hope you and your family have a wonderful New Year.