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CIAL FOCUS Bank-issued, FDIC-insured F I N A N
6-month
2.55 % % 2.75 W 3.00 %
What should you know about investment risk? Minimum deposit APY* $1000
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor Ken Wood
1-year
APY*
hen you invest, you incur risk—there’s no avoiding it. But the concept of “risk” may be more expansive than you realized. And by understanding the different types of investment risk and how these risks can be addressed, you can improve your skills as an investor.
2-year
and
itment.
APY*
Minimum deposit $1000
You can help manage this type of interest rate risk by owning a variety of bonds with different maturities. When interest rates are rising, you can reinvest your shortterm bonds at the new, higher rates. And in a falling-rate environment, you can still benefit from your longer-term bonds, which typically pay higher interest rates.
Minimum deposit $1000
* Annual Percentage Yield (APY) effective 12/18/18. CDs offered by The most common perception of Foreign or international investments Edward Jones are bank-issued and FDIC-insured upcontain to $250,000 investment risk is simply the risk of also specific risks. When you losing money. but When not you invest stocks purchase foreign stocks, you’ll (principal and interest accrued yetinpaid) per depositor, per find that and stock-based vehicles, such as mutual fluctuations in the value of currencies insured depository institution, account funds, therefor are each no guarantees that ownership relative to the U.S.category. dollar can affect your as been committed to providing your or principal—your returns. Also, international investments Please visit www.fdic.gov contact initial yourinvestment financial advisor for amount—will be preserved. Generally may carry political risk, since alized service to individual additional information. Subject to availability and price change. CD some Feeling like you speaking, if you hold stocks or mutual foreign governments and political systems values are subject to interest risk such interest rates funds overrate a period of years, andthat even when may change in ways that work against paid too much in decades, you can reduce the likelihood businesses in those countries. To contain rise, the prices of CDs can decrease. If CDs are sold prior to maturity, of sustaining losses that could send your these types of risk, you’ll want to maintain taxes year? the this investor can lose principal value. FDIC insurance does not cover investments’ value to zero. Hopefully, the an appropriate allocation of international losses in market value. Early withdrawal may notholdings be permitted. Yields value of your investments will rise over and diversify across regions. and face-to-face meetings time. And it’s worth notingrequire that, since the distribution of quoted are net of all commissions. CDs the Great Depression, U.S. stocks have Ultimately, your most broad-based defense interest and do not allow interest to compound. against offered all types of through risk is to build a averaged 9.59 percent annual returns, CDs Contact your financial diversified portfolio containing stocks, ent Philosophy Edward Jones are issued according to Morningstar Direct, an by banks and thrifts nationwide. All CDs U.S. sold advisor today to learn international stocks, corporate bonds, investment research service. However, past focuses on qualityby investments Edward Jones are registered with the Depository Trust Corp. (DTC). performance can’t guarantee future results. mutual funds, government securities and about investing strategies that could benefit you.
other investments. Diversification works In any case, this type of risk is real, and because it helps reduce the impact that it’s a factor to consider when making your market volatility can have on your portfolio investment decisions. But you can’t avoid if you only own one type of asset, such as all risk by avoiding stocks and putting your domestic stocks. (However, diversification money into other types of investments. can’t guarantee profits or protect against all Consider bonds, for example. When you losses.) And you’ll also want your portfolio purchase a bond, you typically receive to reflect your individual tolerance for risk. regular interest payments, and you get www.edwardjones.com back your initial investment when the By being aware of the different types of risk, and taking steps to mitigate them, you can bond matures, provided the issuer doesn’t Member SIPC default. But if interest rates go up and you create a strategy that offers the potential want to sell your bond before it matures, to help you achieve your important goals, you’ll have to offer it at a “discount,” such as a comfortable retirement. And by because no one will pay the full price for doing so, you’ll avoid the greatest risk of your bond when they can buy new ones at all: not investing for your future. a higher rate.
visit your local financial advisor today. Make your financial Ken Wood future a Financial Advisor 477100 Highway 95 priority. Make yourSuite B Ponderay, ID 83852 Ken Wood financial 208-255-2613 future a priority.
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Ponderay, IDFinancial 83852 Advisor 208-255-2613 477100 Highway 95, Suite B www.edwardjones.com Ponderay, ID 208-255-2613
Ken Wood
Financial Advisor .
477100 Highway 95 Suite B Ponderay, ID 83852 208-255-2613 www.edwardjones.com 10
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