Radio Transcript, 60 seconds, for use during week of ...



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This Invest Wisely minute is brought to you by the Lewiston City Library.

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Invest Wisely is brought to you by the Lewiston City Library, SmartInvesting at Your Library program and the Iowa State University Extension. Find a full discussion about this and other resources on our website at CityOfLewiston Dot Org backslash library.

Invest Wisely Project

1 minute PSA for week of June 4

Your first step toward wise investing is to figure out what your investment goals are. Some folks spend more time planning a summer vacation than they do their investments. So take some time now to think about both short- and long-term investment goals.

Will you need a different car in two or three years? This is a short-term goal.

And does putting more money away for retirement sound good to you? This is a long-term investment goal.

Be as specific as you can… how much money by what date for what goal. And put it in writing.

Being realistic is important too. Look at your current resources. What can you reasonably invest in a given week or month?

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Invest Wisely Project

1 minute PSA for week of June 11

When you’re setting your investment goals, make sure they are SMART goals – S for specific, M for measurable, A for attainable, R for reviewed, and T for time-related.

A specific investment goal is one with dollar amounts and dates established for an identified purpose.

Measurable means you will invest an amount of money weekly or monthly.

Be realistic and set attainable goals given your financial situation.

Review your goals regularly, for example annually, to see if you are on target or whether revisions need to be made.

And have a timeline for achieving your investment goals.

By establishing specific investment goals you have a road map for achieving financial success.

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Invest Wisely Project

1 minute PSA for week of June 18

Many people think saving and investing are the same thing. However, they are separate, but equally important, financial tasks.

Savings provide money for emergencies and short-term goals. These back-up funds are there to cover unexpected life events. You want this money to be easily available and guaranteed to be there when you need it.

In contrast, investing is for those long-term financial goals you would like to accomplish. Investments offer the opportunity for higher returns, but you also have more risk. A lot of thought needs to go into an investment plan to reduce and control these risks.

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Invest Wisely Project

1 minute PSA for week of June 25

Investing means you are increasing your net worth to achieve your long-term financial goals.

Investing offers the opportunity for a greater return that can have a big impact over time. Suppose you put $5,000 in a savings account earning an average annual return of 4 percent. In 20 years it will grow to approximately $11,000. But if you had invested the $5,000 and earned 10 percent you would have three times more money in the same amount of time.

Along with the potential for a higher return comes the trade-off of risk and the potential loss of principal. You can control risk by making wise investment decisions and selecting a variety of investments.

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Invest Wisely Project

1 minute PSA #5 for week of July 2

Whether you are investing for short or long term goals, it is important to take advantage of compounding. This means you are earning interest on interest.

Consider this example – If you have the choice of taking a million dollars today or taking a penny that doubles in value every day for a month, you’ll have more money if you take the penny.

The key to making compounding work for you is to start saving and accumulating wealth today. As the doubling penny example shows… even small amounts can grow significantly over time.

By taking advantage of the power of compounding, you can better reach your long term goals.

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Invest Wisely Project

1 minute PSA #6 – for week of July 9

Whether you are investing for short or long term goals, it is important to take advantage of compounding. This means you are earning interest on interest.

You can figure out how long it will take for your investment to double. It’s the rule of 72. Divide 72 by the annual rate of return. This will be approximately how many years it will take your investment to double.

For example, $5,000 invested at 10 percent will double in 7.2 years.

Take advantage of the power of compounding to reach your long term goals.

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Invest Wisely Project

1 minute PSA #7 for week of July 16

All investments involve risk. It’s important for you to balance the rate of return you hope to receive with your comfort level with risk. The higher the rate of return, the higher the risk.

If you need the comfort of a lower level of risk… then you’ll need to start investing earlier to achieve your financial goals… or you’ll need to invest more per month.

Here’s an example.. $100 invested monthly at 10 percent will earn seventy six thousand, six hundred dollars in 20 years. To earn this same amount at six percent interest, you’ll need to invest $160 a month instead of only $100.

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Invest Wisely Project

1 minute PSA #8 for week of July 23

Sometimes investors can get fooled by offers that seem too good to be true.

Keep In mind: The higher the reward, the higher the risk. In today’s market, there is no such thing as a guaranteed 10 or 15 percent return.

Con artists prey on people who rely on safe and predictable income. Watch out for frauds that involve safe or guaranteed returns from things like promissory notes. Investors are attracted to this type of investment because it has an aura of safety with a higher-than-market rate of return.

Just remember, if it sounds too good to be true, it probably is.

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Invest Wisely Project

1 minute PSA #9 for week of July 30

All investments involve risk, but some investments are riskier than others.

The chief risk with safer cash investments such as CDs or Treasury bills is that they may not stay ahead of inflation. The riskier investments, such as stocks, may beat inflation in the long run, but you’ll have to think about market ups and downs.

To choose your personal level of risk, think about your goals, age, income, resources and current and future financial obligations. If you are a younger single person, you can afford to take more risk than if you are a couple approaching retirement.

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Invest Wisely Project

1 minute PSA #10 for week of August 6

All investments involve risk. A pyramid is a good way to visualize how risk fits into your portfolio. The broad, financially secure base should be built on a home, emergency fund, and adequate insurance. On the next level you can include some mutual funds or individual stocks and bonds.

Investment real estate would be on the next level. And at the top are high risk investments that few people should try -- small company stocks or commodity futures contracts.

When your investment decisions take into account all types of risk, you can feel more comfortable that your portfolio will match your financial needs and your comfort level with risk.

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Invest Wisely Project

1 minute PSA #11 for week of August 13

Diversification is key to wise investing. To adequately diversify, you need enough money to make a variety of choices. Mutual funds are a way for even the small investor to diversify.

A mutual fund pools dollars from many investors into a portfolio designed for a specific objective, for example, growth. But be careful. If you buy into two mutual funds but they each invest only in new, small companies, you are not diversified.

Put your eggs in several baskets -- all investors should diversify -- whatever their goals.

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Invest Wisely Project

1 minute PSA #12 for week of August 20

Diversification is a cornerstone of wise investing. The goal is to spread your money among various investments so that if one loses money, the others will more than make up for those losses.

Remember to diversify both among different categories of investments, like stocks, bonds, or CDs…. and within categories…for example stock in small, medium, and large companies or companies in different sectors of the economy.

Time diversification is important too. Invest over different market cycles. To cut down on risk, invest gradually over time, rather than all at once.

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Invest Wisely Project

1 minute PSA #13 for week of August 27

When you’re investing for retirement and deciding how much of your portfolio to put in stocks or mutual funds that invest in stocks – consider one suggested strategy.. subtracting your age from 100.

For example, if you are 55, you might have 45 percent in stocks, and 55 percent in bonds and cash.

Books, online resources and financial professionals can help you determine your mix of assets, but ultimately, it’s your decision. There is no one asset allocation strategy for everyone or for every investment goal.

You’ll want to pick a mix of assets that can meet your financial goals at a level of risk you are comfortable with.

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Radio Transcript, 60 seconds, for use during week of September 3.

Remember to monitor your investment portfolio and rebalance it when necessary.  Some of your investments will grow faster than others.  For example, if you want 40 percent of your portfolio to be in stocks or mutual funds that invest in stocks, but your stocks are now 55 percent of your portfolio, you will want to make some changes.

You could sell some stock and buy investments in other categories.  Or you might leave your stocks as they are but use additional money to buy bonds or certificates of deposit.

Keep your original allocation strategy in mind so you maintain a portfolio you are comfortable with.

Radio Transcript, 60 seconds, for use during week of September 10.

Here’s a way to eliminate the guesswork of deciding when to invest -- use dollar cost averaging.  This provides you with some protection from fluctuating markets.  Using this approach, you consistently invest small amounts over a long period of time, for example $100 a month for 5 to 10 years. 

No load mutual funds that don’t charge sales fees can be a good choice for dollar cost averaging.  This way you avoid the commissions involved in routinely purchasing individual stocks.

The key to dollar cost averaging is consistent investing, no matter what the market is doing. 

Radio Transcript, 60 seconds, for use during week of September 17.

You may have heard about dollar cost averaging as an investment strategy.  This is where you consistently invest small amounts over a long period of time, for example $100 a month for 5 to 10 years. 

If you are investing a regular amount in a 401(k) or other employer retirement plan via payroll deduction, you are already using dollar cost averaging.

However, you still need to monitor your investments.  Regularly, for example once a year, re-examine your portfolio to see if you still have wise investments. 

Radio Transcript, 60 seconds, for use during week of September 24.

A basic understanding of stocks can help you increase your investment successes. There are several ways to categorize them – income stocks, growth stocks; or value, cyclical, or speculative stocks – to name a few.

But few investors can afford to buy individual stocks and be adequately diversified.  Instead, consider mutual funds that pool money from many investors to purchase a basket of stocks.  Mutual funds also could be a smart move if you don’t have the skill or time to select and monitor individual stocks. 

Radio Transcript, 60 seconds, for use during week of October 1.

If you are investing for a financial goal many years in the future, you may want to consider a company that has a dividend reinvestment plan, also known as a DRIP.  This means you receive no cash dividend income, because you will be reinvesting those dividends to purchase additional shares of stock.  And you can buy more shares with extra cash you want to invest.

Drips are an easy and less expensive way to purchase additional shares of stock, because you aren’t paying any brokerage fees.

But remember, this will only work for you if you really don’t need the dividend income in the near future.

Radio Transcript, 60 seconds, for use during week of October 8.

When you include stocks in your investment portfolio, it pays to do your homework. To find out about a stock’s basic value, check out its financial statements.  These are free and contain a wealth of information.

Use these financial statements to calculate financial ratios, such as price-to-earnings, dividend yield, and return on equity.  Or look these up on the Internet.

It’s all in the numbers. These ratios can tell you a lot about a company’s financial health and if buying its stock will fit your investment needs.

Radio Transcript, 60 seconds, for use during week of October 15.

As you consider your stock investments, don’t look just at one moment in time to determine a company’s health.  Be sure to look at benchmarks to decide if its financial situation matches your investment needs.

One benchmark is to compare the financial ratios for the same company from past years.  It also is helpful to compare a company’s ratios to those of other companies in the same industry.

These ratios can be calculated using a company’s financial statements. These statements are available free from either the company or the Securities and Exchange Commission Web site.

Radio Transcript, 60 seconds, for use during week of October 22.

Investing in bonds can help you diversify your portfolio. You are a lender. You loan your money to a government entity, corporation, or a financial institution and receive regular interest -- either semi-annually, annually, or when you redeem the bond. 

Risk with bonds can be minimized.  For example, don’t buy bonds with long maturities when interest rates are low.  Stick to short-term bonds that mature in 3 years or less or intermediate-term bonds that mature in 3 to 20 years. Purchase bonds with different maturity dates.

Other tips for reducing risk -- Diversity across different bond issuers. And check the credit worthiness of the bond issuer.

Radio Transcript, 60 seconds, for use during week of October 29.

When buying bonds, be sure to check the credit worthiness of the bond issuer.  This is rated by commercial firms such as Moody’s and Standard and Poor’s.

The lower the bond rating, the higher the risk.  Investing in lower-rated junk bonds is risky.  Stick to higher rated investment grade bonds.

Radio Transcript, 60 seconds, for use during week of Nov. 5.

One investment option is an annuity.  This is a contract between you and an insurance company.  In exchange for a lump sum or series of payments, the insurance company agrees to make regular payments back to you for a fixed period of time or for the life of you or you and your beneficiary.

Payments can begin immediately or at a specified future date. There are three types of annuities – fixed, variable, and equity-indexed.  Always ask your insurance agent to explain your options in detail.  Review possible contracts and compare information for similar contracts.

Radio Transcript, 60 seconds, for use during week of Nov. 12.

One option for retirement income is an annuity.  Typically annuities offer tax-deferred growth of earnings, a steady income during retirement, and in most cases a death benefit that will pay your beneficiary a guaranteed minimum amount.

But financial professionals advise you to study your options carefully and ask for clarification from your insurance agent regarding annuities.  There can be tax consequences you need to understand. And sometimes fees and other expenses can be more than if you just invest directly in similar mutual funds. 

Consider your options carefully.

Radio Transcript, 60 seconds, for use during week of Nov. 19.

Mutual funds offer many advantages for individual investors.  By pooling money from many investors, a mutual fund company provides diversification and the skills of professional managers.  Investments may be stocks, bonds or cash instruments.

Other advantages – mutual funds can easily be converted into cash. Also, the ease of purchase and the smaller minimums to invest make mutual funds attractive.

When selecting a mutual fund, pick one whose objectives and risk level match your own. For example, if you’re retired you may want a fixed-income fund or a growth and income fund.

Radio Transcript, 60 seconds, for use during week of Nov. 26.

When you invest in a mutual fund you pay for someone else’s expertise and that means annual management fees. 

In addition there may be other fees such as up-front sales fees or fees when you sell your shares. 

However, there are no-load funds. That means you pay no sales fee. So shop for no-load funds and also evaluate the fund’s expense ratio. This is the percentage of the fund’s net assets that go to annual operating expenses. Use a mutual fund calculator. You can get this on the web at by clicking on investor information. 

Compare all the costs of owning mutual funds before you buy.

Radio Transcript, 60 seconds, for use during week of Dec. 3.

When investing, many individuals prefer index mutual funds.  An index fund tracks a particular group of stocks, for example the S&P 500 is made up of large companies.. .the Russell 2000 Index of small companies.  An index fund gets the same returns as the index it tracks minus the annual cost of running the fund. 

And with an index fund you don’t need the time, skill, or money needed to diversify among the stocks of individual companies.

Generally expenses are low because there is no need for analysts to buy or sell securities.  Historically, index mutual funds have a lower expense ratio than the average managed mutual fund.

Radio Transcript, 60 seconds, for use during week of Dec. 10.

You may want to consider ETFs... or Exchange Traded Funds... as an investment. They are the fastest growing segment of the fund industry.

They are similar to mutual funds in that they hold a basket of securities such as stocks, bonds, currencies and commodities.  However, unlike mutual funds, you can trade ETFs throughout the day like stocks. 

The expenses of ETFs are on average even lower than that of index mutual funds.  They also are tax efficient.

The biggest drawback is the brokerage commission you pay each time you buy or sell an exchange traded fund.  Thus, they are less appropriate for the investor who dollar cost averages by regularly putting a smaller amount into an investment.

Radio Transcript, 60 seconds, for use during week of Dec. 17.

There are many alternative investments designed for the advanced investor or for someone who uses an advisor.

One example is called selling short.  An investor expecting a stock price to go down can sell a security without actually owning it.  However, if the price of the stock increases there will be a loss for the investor with no limit of how much could be lost.  Selling short has big risks. 

It helps to understand these investments and why they might not be appropriate for the typical investor.

Radio Transcript, 60 seconds, for use during week of Dec. 24.

Real estate is considered another alternative investment option designed for the advanced investor or for someone who uses an advisor.

You can own real estate, own rental units, or invest in real estate investment trusts, or REITs. (pronounced like feets)

Owning your own home can be a good long-term investment, but other real estate options may not be a wise choice unless you can do your own maintenance on rental units or until the market settles down.

It helps to understand these investments and why they might not be appropriate for the typical investor.

Radio Transcript, 60 seconds, for use during week of Dec. 31.

One of the important financial records investors need to keep track of is basis.  This is the acquisition cost assigned  to an asset for income tax purposes.

If you sell an asset and cannot prove your basis the IRS can apply a basis of zero, which means they think you made a lot more money than you did. It can be a costly mistake.

And if you give a security as a gift, the person you give it to must use the same basis as yours.  Basis recordkeeping is key to successful investing.

Radio Transcript, 60 seconds, for use during week of Jan. 7.

Keeping good financial records can save you money on taxes and may also keep you from worrying about finding information when you need it.  But how long do you need to keep everything?

Check your monthly statements from your broker, investment adviser, or mutual fund company. When you receive your year-end summary, you can throw away the monthly statements for that year.

But keep your tax returns indefinitely. And keep all 1099s, state tax refund documents, and other key information used to prepare the returns. This information may help you out in the future.

Radio Transcript, 60 seconds, for use during week of Jan. 14.

Remember capital gains or losses at tax time. And consider that there is a difference between a long-term capital gain or loss, and a short-term gain or loss. 

Long-term means you have owned the asset for more than 12 months. For taxpayers in the lowest two tax brackets, these gains are taxed at 5 percent in 2007.  All other taxpayers pay 15 percent.

Short-term gains or losses occur if the asset is held for 12 months or less and then sold. Short-term gains are taxed the same as regular income.

Radio Transcript, 60 seconds, for use during week of Jan. 21.

If you sold assets in 2010 and have both short- and long-term gains or losses to pay taxes on… here’s how you get to the bottom line.

First subtract long-term losses from long-term gains. Then subtract short-term losses from short-term gains. If both of these are gains, the amounts will each be taxed at their appropriate rate.

However, if you have a long-term gain and a short-term capital loss, the loss is subtracted from the gain.  

For example, if you have a $5,000 long-term capital gain and a $4,000 short-term capital loss, the net value of $1,000 is what will be taxed.

Radio Transcript, 60 seconds, for use during week of Jan. 28.

A good way to save for retirement is to take advantage of retirement options through your employment. The most common plan is a defined contribution plan. Your benefit at retirement depends on the amount contributed and the returns earned by the investments in the account.

These plans are described as 401(k) plans, for employees of many private companies, or 403(b) plans for public school teachers and employees of nonprofit organizations, or 457 plans for state and municipal workers.  These plans get their names from the sections of the IRS Code that authorize them.

If you haven’t already done this, find out which plan is available to you and start using it.

Radio Transcript, 60 seconds, for use during week of Feb. 4.

Signing up for your company’s 401(k) plan is a great way to get a tax break and save for retirement.  You won’t pay tax on your contribution until you take the money out at retirement. Typically this gives you more money to invest.

For example, if you have $4,000 (four thousand dollars) to put into a 401(k) plan each year, you can invest the entire amount.  But if you paid taxes on that income first, you might only have maybe $2,800 ( two thousand eight hundred dollars) to invest each year.  The exact amount would depend on your tax bracket.

This tax deferral is an excellent reason to take advantage of employer defined contribution retirement plans.

Radio Transcript, 60 seconds, for use during week of Feb. 11.

An individual retirement account, or IRA, is an easy way to save for retirement.  Anyone with earned income can set up and contribute to an IRA. And it’s not too late to make a contribution for the 2007 tax year. 

You have until April 15 of this year. The maximum contribution for the 2007 tax year is 4,000 dollars or 5,000  dollars if you are 50 or older.

You can set up an IRA through a bank, credit union, savings and loan association, insurance company, mutual fund company or investment broker. When deciding how to invest your IRA contributions it is important, as always, to consider risk and fees.

Radio Transcript, 60 seconds, for use during week of Feb. 18.

Roth individual retirement accounts, or IRAs, are available to anyone with earned income of less than 166 thousand dollars for a couple. 

Roth contributions are always made with after-tax money. All earnings within a Roth are tax-free if withdrawn after age 59 1/2, not tax-deferred as in a traditional IRA. Because you have already paid tax on your contributions, you can withdraw your contributions at any time without incurring a penalty or tax.

Other advantages of the Roth -- if you die with a balance in your Roth IRA, it goes to your heirs tax-free, unlike the traditional IRA, where your heirs will owe tax.

Radio Transcript, 60 seconds, for use during week of Feb. 25.

Consider the investment decisions that will be needed as your retirement day approaches.

If you have a retirement plan at work, contact your benefits office at least six months before, to understand your options. And don’t be hasty.. because once a payout decision is made it cannot be changed.

To select the right payout option for you, consider your age and health, investment skills, need for security, tax situation, and your employer’s economic health.

One possibility may be taking everything in a lump sum.  This will have significant tax consequences.  There are several other options -– including IRAs and lifetime annuities.

Radio Transcript, 60 seconds, for use during week of March 3.

As your retirement nears, your investment strategy should change.  The usual advice is to be less aggressive than when retirement was several years away.  Then you could ride out the down swings in the market.  But don’t go overboard in reducing your exposure to risk.

Being too conservative can put you in danger of  not keeping up with inflation.  It’s wise to invest at least some of your portfolio with growth in mind – even in retirement.

One way to guarantee that you won’t outlive your money is to have a lifetime annuity.  Just make sure it is indexed for inflation, otherwise it will buy less as time goes on.

Radio Transcript, 60 seconds, for use during week of March 10.

Many parents and grandparents want to save for their children’s or grandchildren’s college education. As long as your own retirement funds are in good shape, this is truly a gift to the next generation.

Consider how long it is until you need the money. Parents and grandparents of newborns and toddlers can take more risk and might consider investing most of their money in stock mutual funds.

However, if college is less than five years away, you will want to move your money into less risky investments such as bonds, certificates of deposit, or money market accounts. 

And by freshman year it would be wise to have most, if not all, of your money in fixed income investments.

Radio Transcript, 60 seconds, for use during week of March 17.

There are several options for investing for a child’s or grandchild’s college education.  One is a custodial account, where you invest in the child’s name. Keep in mind that the child assumes control of the account at legal age and may not use the funds as you intended.

Other options, such as a Coverdell Education Savings Account or a state’s 529 (five twenty nine) college savings plan, keep control of the money with the person doing the investing. Also, these accounts can be transferred to another child if the first one doesn’t need all the money.

There are different tax situations with each option, so study them carefully for what works best for your family.

Radio Transcript, 60 seconds, for use during week of March 24.

Investment fraud can happen to anyone. There are several practices to watch out for.

Free meal seminars are a common tactic. Although your invitation may state this is an educational presentation where nothing is being sold, you may find out otherwise.  Sometimes a book may be pushed, other times it may be a financial product that might not be suitable for you.

Skepticism is a good defense against being taken advantage of.  Never make a decision on the spot. Proceed slowly and cautiously before making any investment decisions. 

If it sounds too good to be true, it probably is.

Radio Transcript, 60 seconds, for use during week of March 31.

Investment frauds and scams can occur through telephone or e-mail solicitations.  Be careful of any such approaches.  The caller may have a name similar to a respected business.  High-pressure sales tactics may be used as well as false promises.  Your credit card or checking account information may be requested to verify that you are eligible for a “free” offer.

Skepticism is a good defense against becoming a victim of investment fraud.  Proceed slowly and cautiously before making any investment decision.

Remember, it’s probably investment fraud  if it sounds too good to be true.

Radio Transcript, 60 seconds, for use during week of April 7.

If you think an investment offer seems too good to be true, it probably is.  Stop and contact the Idaho Department of Finance before doing anything.

The phone number is 1-888-346-3378.  That number again is 1-888-346-3378.  You can also use the Website: Finance Dot Idaho Dot Gov.  Again.. the web address is Finance Dot Idaho Dot Gov.

Check out the accuracy of investment information you are given.

Radio Transcript, 60 seconds, for use during week of April 14.

Contact your local RSVP volunteers for help with possible investment fraud.  They have been trained to spread the word of the Idaho Department of Finance, Stop, Call and Confirm.

Stop before making an investment decision.  Call the Idaho Department of Finance before taking action.  Confirm the accuracy of the information before you proceed.

The phone number is 1-888-346-3378.  That number again is 1-888-346-3378.

If an investment offer sounds too good to be true, it probably is.

Radio Transcript, 60 seconds, for use during week of April 21.

If you don’t have the time, knowledge, or motivation to manage your investments, hiring a financial advisor may be your best strategy.

The first step is to think about your objectives.  Writing these down will help you clarify for youself what you want, so you can find a good fit for an advisor.  Do you want a stockbroker to recommend and then buy and sell securities?  Or a financial planner to look at your overall financial life?

Ask friends and family for recommendations.  You can also check with professional organizations such as the Financial Planning Association.  They can provide names of members in your area.

Radio Transcript, 60 seconds, for use during week of April 28.

There are several things you can do to evaluate possible financial advisors.

First, find out about fee structures. Some advisors charge a commission on the products they sell. Others work on a fee-only basis. Others charge a combination of fees and commissions.

Also, you’ll want to find someone you feel comfortable sharing all your financial information with. This is needed to provide good advice.

You can check an advisor’s background by calling the Idaho Department of Finance at 1-888-346-3378. That number again is 1-888-346-3378.

Radio Transcript, 60 seconds, for use during week of May 5.

The Internet has dramatically increased the amount of financial information available to consumers. But it can be a challenge to decide which sites are trustworthy.

One way is to check out the URL, the web address.  This tells you who has created the site.  URLs that end in (dot)e-d-u are educational.  (dot)o-r-g for organizations.  (dot)g-o-v are government sites.  (dot)c-o-m are commercial sites. 

Non-commercial sites are probably your best bet for reliable information from sources that aren’t trying to sell you a product or service.

So watch for sites that end in (dot)e-d-u, (dot)o-r-g, or (dot)gov.

Radio Transcript, 60 seconds, for use during week of May 12.

There are many web sites that discuss investment products or services. Here are a few non-commercial sites that provide reliable educational information you can trust.

The Investor Protection Trust’s web site () provides independent, objective information needed by consumers to make informed investment decisions.

A new educational partnership, extension (), combines the efforts of more than 70 land grant universities to provide a one-stop shop to access the best educational materials that are developed by Extension across the nation.

Here are a few tips to help you invest wisely:

First, set investment goals so you know where you are headed.  Make these goals specific and measureable, attainable, review them, and give yourself a time frame to accomplish them.

Second, keep good financial records so you can find the information you need when making investment decisions.

And third, take advantage of compounding by starting to invest today, right now. Even if it doesn’t seem like much, consistently  putting something aside -- over  time -- will grow.

Here are tips to help you invest wisely:

When you are setting investment goals, be sure you first have put away some secure funds in savings that are easily available for emergencies.

For long-term investment goals, you’ll need to consider your comfort level with risk.  The higher the potential return on an investment, the higher the risk.

Diversification can help you minimize risk.  Mutual funds may be the way to go if you don’t have the time or knowledge to monitor or sufficient funds to diversify by purchasing individual stocks or bonds.

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