participant workbook - edward jones investments · my financial needs ® the bigger picture:...

Broadening Your Knowledge of Investing

MKD-7727C-A-PW EXP 28 FEB 2021 © 2019 EDWARD D. JONES & CO., L.P. ALL RIGHTS RESERVED.

Participant Workbook

Your Name:

www.edwardjones.com Member SIPC


EXPANDING YOUR VISIONAs an experienced investor, you already have a good sense of the investment process. But maybe there are some terms and recommendations made by your financial advisor that you’d like to explore a little more deeply.

Please feel free to write down any questions or thoughts you may have in this workbook. It is yours to keep. Use it as your own personal reference or as a starting point with your Edward Jones financial advisor.

SEMINAR CONTENTS

The Bigger Picture: Seminar Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

How We Do What We Do . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Keeping an Eye on the “Why” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Understanding the Importance of Investing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Bonds, Stocks and Packaged Investment Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Long-term/Systematic Investing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Focusing on the Positives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Strategy Recap . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Q & A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Welcome


1WHERE

AM I TODAY?

2WHERE

WOULD I LIKE TO BE?

3CANI GET

THERE?

4HOW DO

I GET THERE?

5HOW CAN I STAY ON TRACK?

MY FINANCIAL

NEEDS

®

The Bigger Picture: Seminar Overview

SEMINAR OVERVIEWThe 30-minute seminar is designed to help you by increasing your knowledge beyond your current investments.

This presentation is an expanded look at the “how” of creating an investment strategy as well as the investment components that form your financial picture. And we’ll discuss investing as a process and a journey toward your goals.

Your answers to the five questions on the wheel below form the foundation of your investment strategy. This is where your financial advisor begins developing portfolio recommendations specifically for you.

The answers to these five questions will help provide you with a clearer outlook for your future.


How We Do What We Do

At Edward Jones, relationships are key. We focus on one client – the long-term individual investor. We want to understand what’s most important to you – the client – and then work with you to turn that understanding into an actionable investment strategy.

How and where we do business demonstrates our commitment to the individual investor. Edward Jones has more than 13,000 offices, conveniently located where you live and work.

At Edward Jones:

• You see one dedicated financial advisor and one branch office administrator

• We stick with proven, long-term investment strategies

• We focus on the long-term, individual investor

• We emphasize quality and managing risk through diversification

• We meet with you face-to-face, via web conference or on the phone – whatever is most convenient for you


Keeping an Eye on the “Why”

Your answer to that one question – “Why?” – is the foundation for the investment strategy that is uniquely yours.

It also is the key to what investments will work best for you.

• Stocks

• Bonds

• Mutual Funds

• Exchange-traded funds (ETFs)

In addition to stressing long-term, systematic investing, we also will focus on what you, as an individual investor, can control.

MAKING IT REALTake a minute to think about your future. What do you see? What do you want to see? List your vision of retirement here for discussion with your Edward Jones financial advisor.

I will retire in at the age of . I will be able to:

because my retirement income will be (amount you will need to sustain your quality of life).


Understanding the Importance of Investing

IDENTIFYING YOUR GOALSTake a minute to think about the long-term goals you want to set for your financial life. Write them down here for discussion with your Edward Jones financial advisor.

1 ____________________________________________________________________

2 ____________________________________________________________________

3 ____________________________________________________________________

4 ____________________________________________________________________

5 ____________________________________________________________________

Asset allocation: dividing your money among different asset classes, such as stocks, bonds and cash

Aggressive

Growth

Growth and Income

Income

Cash and Cash Alternatives

Successful investors seem to follow the same set of simple, easy-to-follow rules:

RULE

1Develop a Strategy – Determined by your long-term goals, investing time frame and risk tolerance

RULE

2Stick with Quality – Buy and hold quality investments in a well-diversified portfolio and maintain a long-term perspective

RULE

3Diversify – Having several types of investments (asset allocation) as part of your portfolio can help you weather an uncertain economy


Bonds, Stocks and Packaged Investment Products

Owning a variety of investments – bonds, stocks and packaged investment products – helps build a well-diversified portfolio.

Bonds – debt securities similar to IOUs. When you purchase a bond, you lend money to an issuer – companies, municipalities, states or the U.S. government – to finance a variety of projects and activities.

• The issuer agrees to pay loan back at a specific date.

• The issuer pays back loan plus fixed rate of return (interest).

• Bonds are sold in $5,000 increments.

• The longer the maturity, the higher the interest rate.

• There is an inverse relationship between bond prices and interest rates.

• While the price of a bond may fluctuate, if you hold it to maturity or until it is called, you should receive the original principal value back.

Use this section to jot down any questions about bonds.

Before investing in bonds, you should understand the risks involved, including credit risk and market risk. Bond investments are also subject to interest rate risk such that when interest rates rise, the prices of bonds can decrease, and the investor can lose principal value if the investment is sold prior to maturity.


STOCKSWhen you buy stocks, you are buying shares in a publicly traded company. Investors earn a return on their investment through:

• Stock appreciation or capital gain – the difference between what you paid for a stock and what you receive when you sell it, if its value has appreciated

• Dividends – payments given to shareholders out of a company’s earnings

Use this section to jot down any questions about stocks.

An investment in stocks will fluctuate with changes in market conditions and may be worth more or less than the original investment when sold.

PACKAGED INVESTMENT PRODUCTS (e.g., mutual funds, exchange-traded funds, unit investment trusts)

Packaged investments invest in a variety of securities, including stocks, bonds or a combination of both. Facts about packaged investment products:

• Money is pooled with other investors.

• It diversifies your portfolio.

• Bonds in fund pay interest.

• Stocks in fund pay dividends.

Use this section to jot down any questions about packaged investment products.

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.

(continued)

Bonds, Stocks and Packaged Investment Products


RULE

4Invest for the long term – Despite an uncertain market, a long-term diversified portfolio may weather an economic storm better than a short-term one. You

may need to rebalance or make minor adjustments, but it’s unlikely you will need to rework everything in response to market changes.

Systematic investing allows investors to buy more shares when the price is low and fewer shares when the price is high.

A bull market is the term used to describe when the trend is _____________ . A __________ market describes when the trend is low.

Systematic investing does not ensure a profit or protect against loss. Investors should consider their willingness to keep investing when share prices are declining.

A bull market is the term used to describe when the trend is up. A bear market describes when the trend is low.

Long-term/Systematic Investing


Focusing on the Positives

RULE

5Focus on what you can control – Many people are blindsided by the fluctuations of the market. But there are several things investors like you can do to remain in control, such as:

• Control your saving and spending habits

• Establish an emergency fund of six months of living expenses

• Control your level of debt

• Take action if the market drops by buying when prices are low

• Invest in accounts with differing tax treatments

– taxable

– tax-deferred

– tax-free

• Learn about your risk tolerance

• Control the quality, diversification and terms of your investments

Make a quick list of the issues you want to control to discuss with your financial advisor. Enter a “to be completed by” date to keep yourself on track.

To be completed by:


Strategy Recap

Here’s a recap of what we’ve learned. To facilitate putting your personalized investment strategy into action, make notes next to each topic and take it with you when you meet with your financial advisor.

DEVELOP A STRATEGYRefer to the 5-step questions:

1. Where am I now?

2. Where would I like to be?

3. Can I get there?

STICK WITH QUALITY Ask questions about quality products.

DIVERSIFICATIONLearn which mix of bonds, stocks and packaged investment products work best for you and why.

ASSET ALLOCATIONDiscuss the various levels of asset allocation.

INVEST FOR THE LONG TERM Define your risk tolerance and your goals for the long term.

FOCUS ON WHAT YOU CAN CONTROL List your “controllables.”

For a more in-depth discussion and evaluation, schedule a meeting with your neighborhood Edward Jones financial advisor.

www.edwardjones.com

4. How do I get there?

5. How can I stay on track?


Notes

&AnswersQuestions

participant workbook - edward jones investments · my financial needs ® the bigger picture:...

Documents