RJS 8-30-25

Episode Transcript

Speaker 1 (00:00):
Good morning to all. Craig Shillig here and this is
Safe Money. I'm here every Saturday to talk with our
listeners about financial strategies we use to manage and protect
assets safely. I've been an insurance agent for over twenty
four years. During that time, I've learned a few insurance strategies,
like using annuities as safe money harbors or using cash

(00:23):
value life insurance to supplement retirement income. Just a reminder,
you can call our office at five six three three
three two two two zero zero if you'd like to
enroll into one of my virtual Medicare community meetings I
give two every month via zoom, or you can email
me at Craig at Craigshillig dot com and that's my name,

(00:46):
cr Aig at cr AI G S C h I
L l ig dot com. Today i want to talk
about six ke ease to more successful investing, and then
I'm going to change gears and I'll talk about the
thirty first annual Run with Carl that is coming up

(01:10):
this Monday, Labor Day, September. First, a successful investor strives
to enhance gains and reduce losses. The other that there
can be no guarantee that any investment strategy will be successful.
In all, investing involves risk, including the possible loss of principle.

(01:31):
Here are six basic principles that may help you invest
more successfully. Long term. Compounding can help your nest egg grow.
It's the rolling snowball effect. Put simply, compounding pays you
earnings on your reinvestment earnings. The longer you leave your

(01:52):
money at work for you, the better the numbers should look.
For example, imagine an investment of ten thousand dollars at
the annual rate of return of eight percent. In twenty years,
assumering no withdrawals, your ten thousand dollars investment would grow
to forty six thousand, six hundred and ten dollars. In

(02:13):
twenty five years, it would grow to sixty eight thousand,
four hundred and eighty five that's a forty seven percent
gain over the twenty year figure. After thirty years, your
account would total over one hundred thousand, six hundred and
twenty seven dollars. The simple example also assumes that no

(02:33):
taxes are paid along the way, so all money stays invested.
That would be the case in a tax deferred individual
retirement account or qualified retirement plan. The compounded earnings of
deferred tax dollars provides a powerful incentive to fully fund
all tax advantage retirement accounts and plans available to you.

(02:57):
While you should strive to review your portfolio on a
regular basis, the point is that money left alone in
investment may offer the potential of a significant return over time.
With time on your side, you don't have to go
for investment home runs in order to be successful. Endure

(03:19):
short term pain for long term gain. Writing out market
volatility sounds simple, doesn't it. But what if you've invested
ten thousand in the stock market and the price of
that stock drops like a stone one day. On paper,
you've lost a bundle offsetting the value of compounding you're

(03:42):
trying to produce. It's tough to stay put. There's no
deny in it. The financial marketplace can be volatile. Still,
it's important to remember two things. First, the longer you
stay with a diversified portfolio of investments, the more likely
you are to help reduce us your risk and improve
your opportunities for gain. Though past performance doesn't guarantee future results,

(04:07):
the long term direction of the stock market has historically
been up. Take your time horizon into account when establishing
your investment game plan for assets you'll use soon. You
may not have the time to wait out the market,
and should consider investments designed to help protect your principle. Conversely,

(04:29):
think long term for goals that are many years away.
Second During any given period of market or economic turmoil,
some asset categories and some individual investments historically have been
less volatile than others. Bond price wings, for examples, have

(04:50):
generally been less dramatic than stock prices. Though diversification alone
cannot guarantee your profit or protect against investment laws, can
help reduce your risks somewhat by diversifying your holdings among
various classes of assets, as well as different types of
assets within each class. Spread your wealth through asset allocation.

(05:16):
Asset allocation is a process by which you spread your
dollars over several categories of investments, usually be referred to
as asset classes. The three most common asset classes are stocks, bonds,
and cash or cash alternatives such as money market funds.
You'll also see the term asset classes used to refer

(05:39):
to subcategories such as aggressive growth stocks, long term growth stocks,
international stocks, government bonds, high quality corporate bonds, low quality
corporate bonds, and tax free municipal bonds. A basic asset

(06:01):
allocation would likely include at least stocks, bonds or mutual
funds of stocks and bonds, and cash or cash alternatives.
There are two main reasons why asset allocation is important. First,
the mix of asset classes you sorry for the mix
of asset classes you own as a large factor, some

(06:24):
say the biggest factor by far in determining your overall
investment portfolio performance. In other words, the basic decision about
how to divide your money between stocks, bonds, and cash
or cash alternatives can be important, can be more important
than your subsequent choice of specific investments. Second, by dividing

(06:46):
your investment dollars among asset classes that do not respond
to the same market forces in the same way at
the same time, you can help reduce the effects of
market volatility while helping increase your potential growth in the
long term. Ideally, if your investments in one class are
performing poorly, assets in another class may be doing better.

(07:10):
Any gains in the latter can help offset the losses
in the former and help lessen their overall impact on
your portfolio. Asset allocation does not guarantee a profit or
protect against investment loss. Consider your time horizon in your
investment choices. In choosing an asset allocation, you'll need to

(07:31):
consider how quickly you might need to convert an investment
into cash without the potential loss of principle. Generally speaking,
the sooner you'll need your money, the wiser it is
to keep it in an investment whose prices remain relatively stable.
You want to help prevent a situation, for example, where

(07:51):
you need to use money quickly that is tied to
an investment whose price is currently down. Therefore, your investment
choices should take into account how soon you're planning to
use your money. If you'll need the money within the
next one to three years, you may want to consider
keeping it in a money market fund or other cash

(08:14):
alternative whose aim is to help protect your initial investment.
Your rate of return may be lower than that possible
with more volatile investments such as stocks, but you may
breathe easier knowing that the principle you invest it is
relatively safe and quickly available without concerns over marketing additions

(08:37):
on any given day. Conversely, if you have a long
term time horizon for example, if you're investing for retirement
that's many many years away, you may be able to
invest in a greater percentage of your assets in something
that might have more dramatic price changes, but that might
also have greater potential for long term growth DCA. Dollar

(09:02):
cost averaging investing consistently and often. Dollar cost averaging is
a method of accumulating shares of an investment by purchasing
a fixed dollar amount at regularly scheduled intervals over an
extended time. When the price is high, your fixed dollar
investment buys less. When your price is low, the same

(09:25):
dollar investment will buy more shares. A regular fixed dollar
investment should result in a lower average price per share
than you would get buying a fixed number of shares
at each investment interval. A workplace savings plan such as
a FRO one K that deducts the same amount from
each paycheck and invest it through the plan is one

(09:48):
of the most well known examples of dollar cost averaging
in action today. Remember that, just as with any investment strategy,
dollar cost averaging doesn't guarantee you a profit or protect
you against investment loss if the market is declining. To
help improve the potential effects of dollar cost averaging. You

(10:09):
should also assess your ability financially and emotionally to keep
investing even when the market is down. Remember when the
market's down, we call that a fire sale, and alternative
to dollar cost averaging would be trying to time the
market in an effort to predict how the price of

(10:31):
the shares will fluctuate in the months ahead, so you
can make your full investment at the absolute lowest point. However,
market timing is generally unprofitable guesswork. The discipline of regular
investing is a much more manageable strategy, and it has
the added benefit of automating the process. Buy and hold,

(10:55):
don't buy and forget unless you plan. Unless you plan
to rely on the low uck, your portfolio's long term
success will depend on periodically reviewing it. Maybe economic conditions
have changed the prospects for a particular investment or an
entire asset class. Also, your circumstances could change over time,

(11:18):
and it would be wise if your asset allocation reflects
those changes. For example, is you a closer retirement, you
might decide to increase your allocation to less volatile investments
or those that can provide a steady stream of income
another reason for periodic portfolio review. Your various investments will

(11:43):
likely appreciate at different rates, which will alter your asset
allocation without any action on your part. For example, if
you initially decide on an eight to eighty percent to
twenty percent mix of stocks stocks to bonds, you might
find that after several years, a total value your portfolio

(12:03):
has been divided eighty eight percent stocks to twelve percent bonds.
Sometimes with that ratio that's why you need to rebalance.
To rebalance your portfolio, you would buy more of the
asset class that's lower than the desired possibly using some
of the proceeds of the asset class that is now
larger than you intended. Keep in mind that rebalancing selling

(12:28):
investments in a tax will account could result in tax
liabilities or at ten ninety nine in January. Or you
could retain your existing allocation but shift future investments into
an asset class that you want to build up over time.
But if you don't review your holdings periodically, you won't

(12:48):
know whether a change is needed. Many people choose a
specific date each year to do any annual review. Now
on to the thirty first annual run with Carl. That's
happening this Monday, two days from now, Labor Day, September one,
starting at seven forty five am. Packet pickup is going

(13:13):
on now as I speak. You can still pick up
your packet until twelve noon today at the bed North
Middle School lunch room located off of Middle Road in
eighteenth Street in Bettendorf, or you can pick it up
Monday morning before racetime. Also please note that shirt quantities
are limited. I picked up my packet yesterday. I've talked

(13:39):
about this on a previous show back in the middle
of July and more recently on August sixteenth. Hannona Thompson
was here with me and gave some insight into the
run with Carl. Most road running races don't last three years,
and very few last thirty one years. Seven is fifty

(14:01):
one years old. The Firecracker Run in Moleene that's on
over fourth of July weekend is forty three years old,
and the Quad City Times Marathon excuse me, the Quad
City Marathon that's twenty two years old. Runners are normally
procrastinators and wait until the last minute to sign up

(14:21):
and register. They got to check the weather see if
they're feeling good and or if their friends are also
going to participate. I know, I've done that for several years.
I understand the process. I understand their thoughts. Why am
I talking about the Room with Carl, you ask, well,

(14:42):
Carl Schillig is my brother. He was a student in
Pleasant Valley High School at age fifteen. He died in
a car pedestrian accident while participating in the Civil War
reenactment in the village of Eastavenport on September seventeenth, nineteen
ninety four. Carl was active in numerous school, community, and

(15:04):
church activities. The memorial Fund was established by my family
to perpetuate his memory and enthusiasm for life by providing
college scholarships to graduates of Pleasant Valley. I'll give you
a little bit of background on the Rum of Carl.
Run with Carl began and was the primary funding vehicle

(15:26):
for the Carl D. Shulg Memorial Fund to inc. It
was set up through the Pleasant Valley Educational Foundation. After
twenty successful event years, my family decided it was time
to end the race. In truth, we were kind of tired.
Volunteering can be a very time consuming activity, but we

(15:55):
wanted to end the race, but we still wanted to
provide scholarships. Pleasant Valley and Bednorf School District said, wait
a minute. In the fall of twenty fourteen, the Bednerfs
Community Schools Foundation and the Pleasant Valley Educational Foundation decided
to join together to continue the Run with Carl. The

(16:17):
money raise would benefit both foundations and give the Carl D.
Shilig Memorial Fund a little peace and that would help
both foundations and our scholarship Fund provide grants and scholarships
for area of students. The Run with Carl is truly

(16:37):
one of the only instances between PV and BEDNARTH that
isn't about competition, but rather about community and coming together
for a common cause supporting the future of students and teachers.
In twenty fifteen, as Centric Credit Union became the title
sponsor for the race and continues this partnership today. The

(17:01):
first Carl D. Shilig Memorial Fund scholarship was awarded nineteen
ninety eight. In two thousand and two, the scholarship award
was extended to include a graduate of Bettendorf High School.
The Bedenorf and Pleasant Valley Community School Districts really got
behind this event to help fund college scholarships and their foundations. Currently,

(17:24):
the Carl D. Shilig Memorial Fund has awarded fifty two scholarships.
We've given twenty eight scholarships to Pleasant Valley and we've
given twenty four scholarships to Bettendorf students. That's two hundred
and eight thousand dollars of scholarship money awarded since nineteen
ninety eight. Our fund gives out four thousand dollars a year,

(17:47):
one to a Pleasant Value recipient and one to a
Bettendorf recipient. The scholarship award recipients this year are Ryan
Headon of Bettendorf and Madaline Lee of Pleasant Valley High School.
The Run with Carl proceeds today still help provide funds
to award these scholarships. How can you not feel good

(18:11):
about helping students pursue their educational dreams and helping teachers
create better classroom experiences the Run with Carl. It's a
feel good all around. This event is an important tradition
because it facilitates community over competition. Rarely, if ever, are
BEDNRF and PV not rivals. If you don't know that,

(18:35):
go to one of their football games. But when it
comes to run with Carl, PV and bed NERF. Students,
parents and supporters are on one team and that creates
a nice momentum for the community. It's all about having fun,
getting moving, and giving back. It's an awesome day and

(18:56):
we're proud to make it happen each and every year.
Any and all additional information can be found at runwocarl
dot com or on the Run with Carl Facebook page.
You can still register online today or you can join
us the morning of and get your registration packet then,
though we encourage you to register ahead of time. The

(19:21):
Run with Carl is so exciting for another great year
and couldn't be more grateful for the community for all
the support we've had over the last three decades. Note
the volunteers are still needed. Sponsorship is also needed and welcomed.
It may be too late for this year's race, but
twenty twenty six is just around the corner. If there's

(19:44):
some corporate sponsors out there who would like to get
in on the Run with Carl sponsorship, please let us know.
You can go to Runwcarl dot com or the Facebook
page for more information. Some of our current corporate sponsors
like to send us a check towards the end of
fourth quarter and put that put that charitable deduction on

(20:07):
the twenty twenty five tax return. I'm just throwing the
thought out there. Run with Carl never says no to
more race participants. Come run the five k, you can
walk the five k, you can run the five miler.
It's a pretty hilly course. Or if you're one of

(20:27):
the little kids, you can do the one mile or
the half mile events. Those are also fun to watch too.
If you don't want to participate, if you don't want
to run, walk, or volunteer donations are also accepted. Get
a tax deduction while supporting a worthwhile cause. Run with Carl.
That's two days from today, Labor Day, this Monday, September. First,

(20:50):
be there upcoming shows. September's right around the corner. That's tomorrow.
September's Life Insurance Awareness Month. I'll be talking a lot
about life insurance next month, term insurance, permanent insurance, how
to use insurance for more than just life insurance. Retirement

(21:14):
strategies for life insurance one I'll talk about now, but
you've also heard me talk about annuities. You can turn
life insurance insurance into an annuity later in life, and
everybody on the show knows how good annuities are in
retirement years. But remember, life insurance does pay a death

(21:36):
benefit tax free to a name beneficiary. You can also
access cash values if you structure it properly on a
tax free basis. You've heard me talk in the past
about giving income if you buy the right type of

(21:57):
life insurance policy that provides dividend income and interest. That's
another way to leverage your money. I've had people borrow
from their policies and then pay it back. There's loan
interest on the loan, but you don't have to secure
any asset because the life insurance is the asset itself.

(22:22):
You're just borrowing against what's available to you in the
cash value column on a permanent policy. I'll also talk
a little bit about islets and revocable trusts. But September
will be a big life insurance month. Fifty eight percent

(22:45):
of Americans don't have any life insurance, and over seventy
percent of you don't have enough life insurance. If you
don't have life insurance, think about that. Keep that in mind.
You can get term insurance these days for less than
probably what you're paying for some of your apps or
your streaming services you have at home on the television.

(23:08):
Don't forget. I give monthly virtual meetings regarding Medicare for
two different companies every month, and one meeting I will
cover Medicare supplement plans with a standalone drug plan. That
meeting is sponsored by well Mark United Healthcare as a sponsor.
For the other virtual meeting, I focus on the Medicare
Advantage plan known as Medicare Parts C and cover the

(23:30):
benefits of that platform. Upcoming dates for some of my
Medicare meetings are going to be September sixteenth and September eighteenth.
I'll also have meetings scheduled right now for October ninth.
In October fourteenth, again, I do those on Zoom. You
can call our office at five six three three three

(23:53):
two two two zero zero for the additional Zoom meeting
codes and additional dates and times. In one note about Medicare,
I'll probably know more in a couple of weeks what
will be new for the twenty twenty six calendar year
for you Medicare beneficiaries out there. There's a lot of

(24:13):
rumors about changes. Changes inevitable, but for Medicare advantage plans.
I foresee some changes in that arena. I don't know
if they're for the good or the bad yet. We'll
see understand that prices will be going up, so expect

(24:35):
some premiums, deductibles or copays and coinsurance to be higher
in twenty six. The prescription drug plan will still have
a cap on it. It should be a little higher
than it is this year, but not that much. And
we'll have to see what drug plan premiums are going

(24:56):
to be in twenty twenty six, so stay tuned for that.
You're welcome to email me at Craig at Craigshilig dot
com and that's my email c R a I G
at c R a I G S c h I
L l I G dot com. I'd be happy to

(25:16):
send you the virtual zoom link meeting codes. This is
Craig Shillig with Safe Money.