While growing up I, like many other children, was subjected to situations that unwittingly became family traditions. In most cases, as we grow older, get married and have children, we learn to appreciate these traditions. At different points in my life, I have tried to introduce mine to my wife and children. Some have been accepted with enthusiasm, while others are vigorously resisted.
Consider the scrap bowl, for example. Growing up, my mom always made sure an empty bowl was handy for the discard of the rascally pieces of our carnivorous meal. Since civilization no longer needed these leftover carcass parts of bones and gristle to make soap or scrape hides, their swift removal from our plate would free up more space in which to partake of savory side dishes. As an adult, the scrap bowl no longer resides at my table. In its place, my wife has positioned a giant peacock-colored glass plate. The scrap bowl has become somewhat of a novelty that my daughters look forward to seeing when visiting their grandparents.
I now recognize that the scrap bowl provided a measure of safety. By removing the excess, you are—with a certain degree of confidence—ensuring that the bone marrow from your T-bone steak will not upset the delicate balance of the shaved carrots in the orange Jell-O®.
Oddly enough, I liken that fabled scrap bowl to traditional investing and planning. Investments typically range from stocks, mutual funds, bonds, fixed annuities, CDs and real estate. With each investment, there is a degree of risk that parallels its reward. Depending on your objective, when an investment has grown significantly (or becomes, in food parlance, “a full belly”), it might potentially be a good time to reposition and reevaluate the space made available on your plate.
In some cases, a friend, relative or associate may have the same investment, and their decision prompts you to rethink your own. Well—keeping to our theme here— even though you’ve discarded your portion with a little meat left on the bone, it does not necessarily justify you picking it back out of the scrap bowl to gnaw on it again.
No one knows for sure when or how the markets will dictate change. Even we financial guides are unable to tell you that. It is up to you—working with an advisor— to lay out the menu, implement the service and finally acknowledge the feeling of being satisfied. Think about how delicious the meal was and disregard the scrap bowl— it has served its purpose. So push your chair back, have a sip of coffee and wait for the dessert… I recommend the Baked Alaska.
Municipal bonds are subject to market and interest-rate risk if sold prior to maturity. Bond values will decline as interest rates rise. Interest income may be subject to the alternative minimum tax. Government bonds are guaranteed by the U.S. government as to the timely payment of principal and interest, and if held to maturity, offer a fixed rate of return and fixed principal value.
Securities offered through LPL Financial, member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates. Dupaco Community Credit Union and Dupaco Financial Services, Inc., are not registered broker/dealers and are not affiliated with LPL Financial.
–Not NCUA Insured–Not Credit Union Guaranteed–May Lose Value–
By Michael Poppen