Diversifying between stocks and bonds
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Edward Jones - Chad Choate, AAMS
Posted on
Apr 23, 2021
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Florida - Sarasota, Bradenton & Charlotte Counties
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Bonds can help provide balance
The key to riding out market fluctuations lies in owning a balanced mix of quality investments. Although studies show that stocks have historically provided better long-term returns, its your asset allocation the overall mix of stocks, bonds and cash that ultimately can determine how well
your portfolio performs.
Bonds can provide a steady stream of fixed-income payments that can help you weather stormy markets. Bond prices and interest rates may change, but you can expect to receive regular interest payments and the bonds original principal value at maturity, provided the bond doesn't default. Even if you don't need the income, bonds can help reduce risk through better price stability if you hold them until maturity. If a bond is sold prior to maturity, however, it may lose principal value.
Through good times and bad
Stock and bond prices generally don't move in tandem. In other words, when stock prices decline, bond prices may rise, and vice versa. This relation-ship helps a well-balanced mix of investments potentially achieve more stable returns. So if you own bonds when the stock market drops, they
may help reduce your losses.
The chart below shows that since 1975, bonds have provided positive returns during the eight years when stocks declined. Of course, past performance is not a guarantee of future results, but during those eight years, stock returns fell by an average of 12.5% while bond returns rose by an average of 6.7% a difference of 19.2%.
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This amount represents the highest reported loss across all age groups and surpasses any previous annual figures.These scams are happening in every state, but especially in Florida with its large senior population. In fact, in May of 2023, the Jacksonville, Florida FBI reported a significant increase in the amount of scams targeting people over 65. Florida seniors should be vigilant, informed, and prepared in order to avoid being victims of a scam.Why are seniors susceptible to scams?Seniors face an increased vulnerability to scams due to various factors. Many older adults may not be very tech-savvy, making them more susceptible to online and phone scams. Cognitive or physical impairments in seniors can also hinder their ability to exercise sound judgment. Additionally, older individuals tend to be more trusting, a trait that scammers exploit.Research indicates that seniors might hesitate to report fraud due to fear of losing independence or being perceived as incompetent. 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The scam typically involves a fraudster posing as a tech support representative from a reputable company.Through various tactics, such as displaying pop-ups or fake warning messages claiming a device is infected with a virus, the scammer prompts victims to urgently call a specified number or click on a provided link for assistance. Once contacted, the imposter gains remote access to the victim's computer or phone, posing a serious threat to the security of personal information. The scammer may further demand payment for the given tech support services, often insisting on methods like gift cards or wire transfers.Phishing ScamPhishing is a deceptive tactic wherein scammers send fraudulent emails or messages, posing as legitimate entities, with the aim of tricking individuals into sharing sensitive information like passwords and credit card numbers.This form of cyber scam involves manipulating internet users to disclose their personal and financial data. 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Edward Jones - Chad Choate, AAMS
Financial Advisor 828 3rd Ave. W., Bradenton, Florida, 34205
Experience and Background I am a financial advisor in Bradenton, FL, and began my career with Edward Jones in 2017. As a financial advisor, I want to find out what's important to you and help you build personalized strategies to achieve your goals. As a lifelong Manatee County resident, I graduated from the University of South Florida and was a teacher in Manatee County before joining Edward Jones. My driving force is to change people's lives in a positive way, and what better place than my home to do that. Whether you're planning for retirement, saving for college for children or grandchildren or just trying to protect the financial future of the ones you care for the most, we can work together to develop specific strategies to help you achieve your goals. We will also monitor your progress to help make sure you stay on track or determine if any adjustments need to be made. Throughout it all, we're dedicated to providing you with top-notch client service. But we're not alone. Thousands of people and advanced technology support from our office can help ensure you receive the most current and comprehensive guidance. In addition, we welcome the opportunity to work with your attorney, accountant and other trusted professionals to deliver a comprehensive strategy that leverages everyone's expertise. Working together, we can help you develop a complete, tailored strategy to help you achieve your financial goals. I currently volunteer with the Manatee Hurricane football Broadcast and Booster Club, serve on my church's trustees council and have previously served as a leader in Young Life. I am a member of the Manatee Chamber of Commerce and an alumnus of their Leadership Manatee program. I have been married to my childhood sweetheart, Ashley, for 15 years and we have a son, Wesley, and daughter, Camryn. We enjoy watching our children play their sports and traveling as a family.
