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Show Thursday, June 23, 2011 The Gunnison Valley Gazette Page 7 Know your investment risks—and how to respond The Outdoor Report Submitted by DARIN FRANDSEN When you invest, you take some risks. While you can't totally avoid these risks, you can take steps to help reduce their impact and increase your comfort level. And the more comfortable you are with your investments, the easier it will be to follow a long-term strategy that can help you meet your goals. Let's look at the most common types of risk related to investing, along with some suggestions on helping to reduce these risks: Losing principal — This type of risk is most closely associated with investing. For example, when you purchase a stock, you know that its value could go up or down. If it drops below your purchase price, and you then sell your shares, you will lose some of your principal. Your response — You can't eliminate the risk of losing principal, but by owning a mix of stocks, bonds, government securities and other types of investments, you can help reduce the impact of volatility on your portfolio. Keep in mind, though, that diversification, by itself, can't guarantee a profit or protect against loss. Losing value when interest rates change — This type of risk primarily affects fixedincome investments, such as bonds. If you purchase a bond that pays, say, a 4% interest rate, and the market rate goes up to 5%, then the value of your bond will drop because no one will be willing to pay you the full price for it when newer, higher-yielding bonds are available. Your response — You can combat, or even ignore, interest rate risk by holding your bonds until they mature. By doing so, you'll get your full principal back, provided the issuer doesn't default, and you'll continue to receive regular interest payments un- less the bonds are "called," or repurchased by the issuer. (You can help protect against this by purchasing bonds that have some degree of "call protection" and by owning bonds with different maturities.) Losing purchasing power — This risk largely applies to fixed-rate investments such as certificates of deposit (CDs). To illustrate: If you purchase a CD that pays 2%, and the inflation rate is 3%, you are actually losing purchasing power. Your response — Despite their vulnerability to inflation, CDs can offer you some valuable benefits, such as preservation of principal. Yet if you are concerned about fighting inflation, you may want to look for investments than have the potential to offer rising income, such as dividendpaying stocks. In fact, you can find stocks that have increased their dividends for many consecutive years. (Be aware, though, that companies can re- duce or eliminate dividends at any time. Also, an investment in stocks fluctuates, and you could lose your principal.) Apart from these individual techniques to reduce investment-related risk, you should also save early and save often — because the more money you accumulate, the greater your ability to follow a long-term strategy that reflects your personal risk tolerance. That's why it's a good idea to contribute as much as possible over the years to your IRA and 401(k) or other employer-sponsored retirement plan. By understanding the different types of investment risk, and by acting to help lessen them, you can reduce much of the stress sometimes associated with investing — while you increase your prospects for achieving your objectives. This article was written by Edward Jones for use by your local Edward Jones Financial Advisor LIFE DOESN'T STAND STILL AND NEITHER SHOULD YOUR INVESTMENTS. Time can affect you as much as your investments. While you can't stop change, you can help make sure your investments match your current circumstances and goals. Fortunately, doing that may be as easy as meeting with your financial advisor. A free Portfolio Review from Edward Jones can help identify where your investments stand in relation to your goals. And help put time back on your side. To schedule a complimentary Portfolio Review, call your local financial advisor today. Bears seen across Utah A bear enters the cab of a truck on Boulder Mountain. Two young bears peak through cabin windows near Hobble Creek. And, just a few days ago, a mother bear and her yearling cub are seen wandering in Ogden Canyon. From northern Utah to points down south, people are seeing bears across Utah right now. And in places they've never seen them before. "I have lived in the canyon for 40 years," says Keith Runcles, who owns the Oaks restaurant in Ogden Canyon, "and this is the first time [I've heard of people seeing bears]." Kevin Bunnell, mammals program coordinator for the Division of Wildlife Resources, says there are two reasons why: •June is the time of the year when mother bears kick their oneyear-old cubs out on their own because the breeding season is starting. • The young bears, out on their own for the first time, tend to wander as they search for an area to call their own. • The incredible amount of snowfall Utah has received. "The bears would prefer to be in meadows higher in the mountains right now," Bunnell says, "but the snow has closed many of these areas off. That's forcing the bears to look for food at lower elevations." Most of the bears are eating grass right now. But Bunnell says bears aren't shy at all about eating the same food people eat. And that can lead to a tragic outcome—usually for the bear. "When a bear begins to lose its fear of people," Bunnell says, "we have a dangerous situation on our hands; a wild animal that's more likely to act aggressively towards people. "In these situations," he says, "we sometimes have to trap and euthanize the bear to keep people safe." Fortunately, Bunnell says doing five simple things will lessen the chance that a black bear visits your campsite or cabin area this year: • Store your scented items, such as deodorants and tooth paste, and your food. Don't leave your food and scented items where a bear can get them. •Keep your campsite or cabin area clean. Don't toss food scraps and other trash around. • Don't keep any food in the same area where you're sleeping. •If an item has a strong smell to it, you should probably leave it at home. •Never feed a bear. Bunnell says bears are usually attracted to people by strong smells and the food that's usually associated with the smells. By doing a few simple things, you can cut those smells down. And that will greatly reduce the chance that a bear visits your camp or cabin: • Don't leave food out. Instead, lock your food and coolers inside your vehicle. You can also suspend them at least 12 feet high between two trees, so bears can't reach them. • You can also store your food in a bear-proof container. But remember that most containers, including plastic food coolers, are NOT bear proof. Various sporting goods stores and outdoors stores sell containers that are bear proof. • Don't scatter garbage, food scraps and fat drippings around your campsite. And don't leave them in your fire pit, either. Instead, place them in an airtight container, lock them securely in the trunk of your car or inside your trailer and take them home with you. If bear-proof garbage cans are available in your campground, you can also leave them in the cans. • After you're done cooking and eating, immediately clean your cooking grills. And also clean anything used to prepare, eat or clean up food. • Don't keep any food in the area where you're sleeping. • Cook away from your tent or sleeping area. And don't sleep in the clothes you wore while cooking or the clothes you wore while cleaning fish. Leave those clothes at your cooking area, along with utensils, rags and anything else used to prepare, cook, eat or clean up food. Or, better yet, seal the items inside a vehicle or in a bear-proof container. • If you're camping in the backcountry, hang your food and the clothes you used while cooking between two trees and at least 12 feet off the ground. • Don't bring items with you that have a strong odor. Bears have extremely sensitive noses. Anything that has a strong smell, including deodorant, perfume and certain soaps, could draw a bear to your campsite. •Never feed a bear. Bunnell says if you follow these rules, you'll not only help yourself, you'll help other people too. He says a bear may not visit your campsite while you're there. But the food you leave out and the litter you leave behind could bring a bear to that same area after you leave. And that could create a serious problem for people who camp in the area after you. The Outdoor Report is Sponsored by: *.° Darin K Frandsen 0.I SH E .00 ' Financial Advisor 446 South Mall Drive B-7 St George, UT 84790 435-627-2159 www.edwardjones.com Member SIPC EdwardJones 528-5001 Hwy 89 Northeast of Gunnison Open Monday - Saturday SATTERWHITE The First Word and Last Name in Log Homes! oFO LOG HOMES Family. Experience. Quality. Think Satterwhite for Log Homes, Rough Lumber, Timbers, Animal Bedding and Firewood MAKING SENSE OF INVESTING This summer, raise your thermostat and lower your bill. That's a wise choice. I I Roc ky Moun ta in Taking the stairs is a wise choice you can make to improve your heart health. Wise choices, such as regular health screenings or meeting with a personal health coach, can improve your health one step at a time. If you are a woman aged 50-64, find out if you qualify for free individual health coaching, blood pressure, glucose, and cholesterol testing, and breast and cervical cancer screening. Get the tools you need to live an active, healthy life. "SUMMER ELECTRIC RATES HELP YOU MANAGE YOUR ENERGY USE." From May 1—September 30, the first 400-kilowatt hours (kwh) used per month will be billed at 7.5 cents per kwh. The next 600 kwh will be 9.3 cents per kwh, and any Get Screened, Be Active, Be Healthy, Call 1-800-717-1811. Ane additional kwh over 1000 will be 11.5 cents per kwh. So the less you use, the less you'll pay. It's wattsmart. To learn more, go to wattsmart.com . ROCKY MOUNTAIN POWER Let's turn the answers on. JL HEALTH C) UTAH DEPARTMENT OF Utah Cancer Control rogram P A Joint Program of the Utah Department of Health and Utah's Local Health Departments toG Easy 1/4 ONE IP (Two) FREE |
