Page 9 - Jupiter Spotlight - October '19

Jupiter Spotlight, Page 9
Financial Focus

Don’t Chase Last Year’s However, with a little study, you can understand why these You might be tempted to choose categories by looking at
Mutual Fund Category funds have their names – for example, a Small Cap Growth fund which most recently outperformed the others, and just stick
will contain stocks of smaller companies thought to offer growth
with those groups. But is this a good idea?
Winners potential. Once you know the goals of different categories of It probably isn’t – and the main reason you shouldn’t chase
mutual funds, you can determine which ones fit into your overall performance this way is things change very quickly in the mutual
By Sally Sima Stahl investment strategy. funds arena. It’s quite possible – and has happened many times
The world of mutual funds This is important, because you want to ensure your portfolio – that the top category last year can fall into one of the worst-
can be confusing. With more is appropriately diversified. For example, if you find that almost performing ones this year, and vice versa. Consequently, your
than 9,000 funds on the market, all of your mutual funds come from the above-mentioned Small efforts to capture a winning trend may be futile.
how can you choose the ones Cap Growth category, you may be taking on more investment Of course, within the context of investing in various mutual
that are right for you? risk than you’d like, because funds that offer the greatest growth fund categories, you still need to choose individual funds.
One way to start is by possibilities also usually carry the highest degree of market And, as is the case with categories, you might be tempted to
considering the various volatility. Typically, you may be better off owning an array of give considerable weight to a fund’s track record. But, similar
categories of mutual funds mutual funds drawn from several different categories, with the to the situation with fund categories, “chasing performance”
– and there are quite a few percentage each category occupies in your portfolio based on is typically not a good strategy – after all, last year’s “hot”
of them: Small Cap Growth, your goals, risk tolerance and time horizon. (Keep in mind, fund may have cooled off considerably this year. Nonetheless,
Large Cap Growth, Large Cap though, that while diversification can help reduce the effects of reviewing a fund’s longer-term track record can help you
Value, Diversified Emerging Markets, Foreign Large Cap Blend volatility, it doesn’t guarantee a profit or protect against losses understand how it might perform through the ups and downs
and more – the list is extensive, and for many people, confusing. in a declining market.) of the financial markets. Always keep in mind, though, that past
performance can’t guarantee how the fund will perform in the
future.
Mutual funds are popular investments – and for good reason.
Since each fund generally contains dozens of securities, you
get a degree of diversification you can’t achieve from owning
individual stocks or bonds. And, as discussed above, you can
diversify further by owning funds from several categories. Just
remember, though, that as you build your mutual fund portfolio,
don’t get caught up in last year’s results – because old news just
may not be that relevant today.
Mutual fund investing involves risk. Your principal and
investment return in a mutual fund will fluctuate in value. Your
investment, when redeemed, may be worth more or less than
the original cost.
This article was written by Edward Jones for use by your
local Edward Jones financial advisor. Edward Jones, its
employees and financial advisors cannot provide tax or legal
advice. You should consult your attorney or qualified tax advisor
regarding your situation.
Call me for a free portfolio review at (561) 748-7600, Sally
Sima Stahl, AAMS, 1851 W. Indiantown Road, Ste. 106, Jupiter,
FL 33458.
It’s The Law!

Did You Know That, In

Florida …

By Adam S. Gumson, Esq.
Sometimes, a married
couple may claim two
homestead exemptions if
each truly lives in a separate
household for at least 183
days a year. However, a
married couple with a
vacation home where one of
the parties resides there less
than 183 days per year cannot
(validly) claim a homestead exemption on the vacation
home. Claiming both exemptions in this example would be
fraudulent.
A property settlement agreement allows spouses
in a divorce action to determine his/her own rights and
responsibilities without the court having to make those
decisions for them. Some of the issues usually covered in
this agreement include distribution of marital assets and
liabilities, timesharing with children, child support,
Friday, October 18th health and life insurance, alimony and attorneys’ fees.
Estate planning is not just for the wealthy. It helps
5-8 PM KIDS AREA & BOUNCE HOUSES manage and dispose of your estate, whether large or small,
during your lifetime (if you are incapacitated) and at your
death (because whatever you own at the end of your life is
SWAT & K9 DEMONSTATIONS your life savings). A last will and testament should address
guardianship of minor children, homestead disposition,
appointing a personal representative to manage the estate
FUN FOR THE ENTIRE FAMILY and even distribution of miscellaneous personal property,
including pets.
JUPITER LAW CENTER is a private neighborhood law
COMMUNITY INITIATIVE firm located in the RiverPlace Professional Center, 1003 W.
Indiantown Road, Suite 210, Jupiter, FL (561) 744-4600,
jupiterlawcenter.com. The firm provides peace of mind by
solving problems with integrity and compassion in the areas
of estate planning (wills and trusts, powers of attorney, health
care surrogates, living wills, probate estates, succession
planning, contracts and purchase/sale agreements), family
law (divorce, paternity, child support and time sharing,
alimony, property distribution, modifications, collaborative
law, pre/post nuptial agreements) and real estate (community
association law, residential and commercial transactions,
deeds, closings).