to manage risk
Transcript, 2 minutes 20 seconds, for use during week of May
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.
Ira: We’ve been talking about all the things Susan and
I have learned in our conversations with you over the last year,
Penny. One of the most helpful conversations for me was
talking about the differences between stocks, bonds and cash
Penny: It really helps to know the differences
among these options and how they can help you reach your investment
I appreciated learning about the advantages of mutual funds,
how they pool money from a lot of investors so that I can have
more diversification and draw on the expertise of professional
managers even if I don’t have a lot of resources or time
to research individual stocks.
Ira: In addition, I understand
more about researching my investments and how important that
is. Stocks have the potential for
rewards, but come with more risk. Bonds can provide me
with known payments at specified times. And, as Susan mentioned,
mutual funds let me pool my money with other investors.
What about saving for retirement, Susan? Do you
think you’ve made progress there?
Susan: I’ve investigated
my employer’s retirement
options and have started taking advantage of what they offer. It’s
really helpful that they provide an employer match. I’ve
also started an individual retirement account and I’m excited
about the long-term benefits from that. I just wish I had
Penny: Susan, it really is better late than never.
I’ve also looked into the 529 college savings plan,
which looks like a good way to save for my granddaughter’s
education. The withdrawals will be exempt from federal
taxes if they’re used for qualified higher education expenses.
If you had to pick the most important thing you’ve
learned from our conversations, what would you say?
make an investment decision in a hurry. There’s
always time to research and the Iowa Insurance Division can help
by providing information on investment fraud.
Susan: Have clear
investment goals. And with those goals
in mind, invest as much as you can and keep adding to your investments
consistently over time.
Penny: And remember, for more information,
visit the ISU Extension website at extension.iastate.edu and
look for 'Invest Wisely.'