Save Ottumwa Post May 15, 2024

Postal Customer

Ottumwa Publishing

641-208-5505

ottumwapost.com

•••••MAY 15, 2024•••••

Risk tolerance can play a large part in determining the structure and composition of an individual’s investments and financial plan.

As an investor, it’s important to know your risk tolerance for investments and be aware of circumstances that Has your risk tolerance may affect it. changed over time? Here Evaluating your risk tolis how to tell. erance regularly can help ensure your portfolio mix is still aligned with your current situation and future goals. Here are five considerations to make when assessing your risk profile: 1. Understand how risk tolerance can affect a portfolio. Investors with conservative profiles are often individuals who have shorter investment horizons or fewer assets. These investors are usually matched to similarly risk-averse investment vehicles, such as bonds. Bonds generally offer lower returns in exchange for their relative safety. A portfolio heavily weighted in stocks is better suited to individuals with a high-risk tolerance. For example, younger investors who have time to bounce back from market fluctuations or investors with ample resources may utilize higher-risk investment options. Similarly, wealthy individuals who are willing to take on more risk for the (Financial cont’d on pg 2)

PAGE 2

SAVE OTTUMWA POST

(Financial cont’d from pg 1) one of the best ways to

potential of higher returns might explore IPOs, hedge funds, options and futures and other alternative investments. Most investors find a balance between risky and conservative portfolios. Risk tolerance is a spectrum, and you can find equilibrium in your portfolio as a whole by adjusting the riskiness of individual investments.

2. Changes to your personal life. Big life events such as marriage, divorce, home ownership, parenthood or a job change can impact your risk tolerance.

For example, having a baby may compel you to be more cautious about how you manage risk exposure because you’re responsible for an additional member of your family. On the other hand, making the last payment on your mortgage may give you more financial flexibility, and your risk tolerance may adjust accordingly.

weather through market volatility.

4. Consider your confidence with risk. Check your stress level when the market fluctuates. You may not have the stomach for market dips. You also may be less comfortable with risk if you have other reasons to avoid it: you’ve taken on more debt, had a reduction in your income, or have seen an increase in your cost-of-living expenses. Older investors may be most concerned with safeguarding principal and earning reliable, even if modest, returns. If you have noticed your discomfort with risk increase, speak with a financial advisor about potentially adjusting your portfolio mix.

5. Progress towards goals. Younger investors can usually manage more risk because they have years ahead of them in which to make up for market downturns. A 3. Changes to external windfall or other improvecircumstances. Your risk ment in your finances may tolerance can be influallow you to take on more enced by matters outside risk. Alternatively, drawyour personal sphere of ing nearer to your goals influence. Stock market – such as a child’s college volatility, inflation and enrollment or retirement political events can con– may mean you need to tribute to your ease or dis- take on less risk to protect comfort with investment the money you need. (But risk. When big external remember: retirement events occur, you may investors should also confeel compelled to adjust sider that their nest eggs your portfolio. Before do- may need to last several ing so, keep two principles decades). in mind: (1) It’s important for your investments to at Risk tolerance is not least keep pace with the static. Like many aspects rise of inflation over time, of your life, it can change overwise your portfolio will over time. When circumlose purchasing power. stances shift, it’s wise to (2) Staying invested is evaluate whether your in-

vestments are still appropriate. A financial advisor can help you assess the health of your holdings and make adjustments that match your risk tolerance.

Duane J Lusson, CFP, ChFC, CLU, MSFS, is a Private Wealth Advisor with Ameriprise Financial Services, Inc. in Ottumwa, Iowa. He specializes in fee-based financial planning and asset management strategies and has been in practice for 30 years. To contact him, call 641-684-4200 or stop by his office at 527 W. Second in Ottumwa, Iowa.

Fixed Income There are risks associated with fixed-income investments, including credit risk, interest rate risk, and prepayment and extension risk. In general, bond prices rise when interest rates fall and vice versa. This effect is usually more pronounced for longer term securities.

Stock Investment Stock investments involve risk, including loss of principal.

High-quality stocks may be appropriate for some investment strategies. Ensure that your investment objectives, time horizon and risk tolerance are aligned with investing in stocks, as they can lose value.

Alternative Investment Alternative investments involve substantial risks and may be more volatile than traditional investments, making them more appropriate for investors with an above-average tolerance for risk.

MAY 15, 2024 than traditional investments in stocks or bonds, including the risks of using derivatives, leverage and short sales, which can magnify potential losses or gains. Restrictions exist on the ability to redeem units in a hedge fund. Private funds are speculative and involve a high degree of risk.

of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value.

Ameriprise Financial, Inc. and its affiliates do not offer tax or legal advice. Consumers should consult with their tax advisor or attorney regarding their specific situation.

© 2024 Ameriprise Financial, Inc. All rights reserved.

Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations

Securities offered by Ameriprise Financial Services, LLC. Member FINRA and SIPC.

File # 6414104.1

Ray’s Longbranch Homemade 1/2 lb. Tenderloins & Hamburgers Drakesville, IA • 722-3355

BARN RESTORATION Specializing in Barn & Pole Barn

Repair and Restoration

Options Options involve risk and are not appropriate for all investors.

Before entering into any options transaction, clients must receive the document entitled Characteristics and Risks of Standardized Options.

Hedge Funds An investment in a private fund involves a substantially more complicated set of risk factors

See more restorations!

WAGLER BUILDERS

(641) 777-5000 • john@waglerbuilders.com

@waglerbuilders

MAY 15, 2024

Tick Attack Saturday, I decided to go for a quick ride through the timber in pursuit of my latest hobby, finding different types of edible mushrooms. There are all kinds of mushrooms we have overlooked in the past, just because I did not know about them. At this time of year with the plentiful rains we have experienced, mushrooms of all types are growing in abundance. Morels are still one of my favorites but the season for them has passed. Now we have at least two types of oyster mushrooms and chicken of the woods, which are all easy to identify.

Wood ticks have been plentiful this year but not a huge problem. When I plan to wander around the woods, I wear a set of clothes treated with the insect repellent, permethrin.

This does a fairly good job of keeping ticks off me and the dogs have long lasting treatment that kills the ticks when they bite them. I would rather have something for the dogs that would prevent the tick from getting on the dogs, but that is not an option.

Billie, the poodle, and I took off in the Ranger, heading to the paintball timber. After the first hundred yards, Billie bailed out and wanted to run. He happily ran through the hayfield ahead of me and into the woods. I was looking for recently dead ash or elm trees. For some reason, this is where the oyster mushrooms grow. Billie was looking for any furry forest creature he could chase. He covered a lot of ground chasing squirrels and rabbits while I picked more than enough golden oyster mushrooms for a meal. We were back at the house in less than thirty minutes.

I rinsed the mud off Billie’s feet and joined my wife on the porch getting ready to brush him. My wife noticed a tick on his chest. I got the brush, and the first stroke yielded several ticks. I would remove each tick from the brush and burn them with a lighter. The next brush removed several more.

Each stroke of the brush brought more ticks. We finally got a jar of alcohol and dropped the live ticks into it as stopping to burn each fresh batch (Outdoors cont’d on pg 4)

SAVE OTTUMWA POST •OTTUMWAPOST.COM

PAGE 3

PAGE 4

SAVE OTTUMWA POST

(Outdoors cont’d from pg 3)

was getting tedious, not to mention, my thumb was getting sore. About two hours later, the dog was getting sore from non-stop brushing, my arm was getting tired, and the number of ticks removed with each stroke did not seem to be decreasing. This was obviously not going to work. If each tick had to bite the dog for the medicine in him to work, he would run out of blood before they were all killed. We went to the shower and gave him a flea and tick bath. This was not his idea of a good time after having such a

MAY 15, 2024

fun run, but it beat the alternative. After drying him off, we brushed him out again. We removed many more dead ticks after his bath. I have not seen that many ticks in my entire life. Our comparatively mild winter and warm wet spring must have created an ideal situation for wood ticks, especially in the paintball timber.

We made a great recipe for mushroom risotto but if we need more golden oysters, I will not be taking Billie with me to get more. The poor dog does not need another tick attack.

Plan now for a

Great Hunting Season

Food Plot Seed & Deer Mineral 641-722-3357 • 20927 Ice Avenue • Bloomfield, IA