How to invest wisely

Radio Transcript, 3 minutes 5 seconds, for use during week of May 19.

Description: Penny, Ira, and Susan review their investment discussions over the last year

Announcer: Invest Wisely comes to you from Iowa State University Extension through a grant from the Investor Protection Trust, providing investor education on the web at: investorprotection.org.

Susan: Penny, it’s hard to believe we’ve been having these conversations for almost a year.  I can’t tell you how much I’ve learned and how helpful it’s been.

Penny: I’m glad it’s been useful, Susan.

Susan: It really has.  I have several investment SMART goals.  That’s specific, measurable, attainable, reviewed, and time-related goals that I update regularly.  They’ve really helped me stay focused.

Ira:  And I’ve been working on my asset allocation.  After we talked about how important it is to diversify, I  realized that I can’t put all my investment dollars in one place.  I’m working on keeping a percentage in stocks, bonds, and cash.

Penny: Diversifying can really help you reduce your risk.  You and Susan have different needs and different long-term goals, but diversification and understanding risk are critical concepts no matter what your goals.

Susan: I am concerned about risk, especially when the market fluctuates or when my investments lose value, but you’ve definitely helped me understand that all the things we’ve talked about--planning, diversification, and researching my investments can really help.

 Ira: I particularly appreciate learning about the importance of keeping good financial records.  It’s been much easier lately for me to find information when I need it--for my taxes and when I’m making changes in my investments.

Susan: I used to think it was all too overwhelming. I thought I’d just put my money in the bank and I wouldn’t have to think about it anymore.  But you’ve helped me understand that there are people and resources that can help me and it’s made me much more confident about managing my investments and meeting my goals.

Penny: That’s great.   I’m pleased that you’re both putting the things we’ve talked about into practice.

Ira: My new financial advisor has been a big help.  She was really impressed that I had well-defined objectives and a list of questions for her when we met the first time.  Thanks to your advice, I checked her background carefully and am confident that I’ve found someone who can help me reach my goals.

Penny: And remember, for more information, visit the ISU Extension website at extension.iastate.edu and look for ‘Invest Wisely.’