Boulder City Magazine is a monthly publication full of information about Boulder City and Southern Nevada. Boulder City Magazine features the Boulder City Home Guide, a real estate guide to Boulder City and Southern Nevada.

Money Matters
by Wendell Whitman
Edward Jones

The Follies of Market Timing
Many investors try to “time” the market by “buying low and selling high.” In theory, that’s a great strategy - but it’s almost impossible to follow. If you try to outguess the market, you run the substantial risk of guessing wrong - of buying stocks too soon, before they get even cheaper, or of selling stocks too late, after they’ve fallen from their highs.
Furthermore, if you are always buying and selling to catch the lows and the highs of the market, you could end up with a portfolio that doesn’t really meet your individual needs or match your tolerance for risk. And you’ll likely rack up some big transaction costs, too.

Make your investment decisions carefully. But until a crystal ball arrives, don’t try to stay one step ahead of the market - or you could find yourself falling even farther behind.

Use a “Ladder” to Climb Above Interest-rate Worries

If you depend on bonds for some of your income, what should you do if interest rates are down when your investments mature? Should you just “park” your money somewhere and wait for rates to rise again?

There may be a better solution. Consider building a “bond ladder” - a collection of short-term, medium-term and long-term bonds.

Once you have established a bond ladder, you are prepared for both rising and falling interest rates. When rates are rising, you can use the proceeds from your maturing bonds to invest in new ones at the higher levels. When market rates are falling, you’ll continue to benefit from the higher rates offered by your longer-term bonds even if you are purchasing bonds that have a lower rate with the money coming due.

See your financial advisor for help in putting together a bond ladder. It can be a great way to fight interest-rate worries.

Contact Wendell at Edward Jones

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