Newspaper Page Text
■ Financial
Focus
Reported by Sonny Doehring
You can help move a Mountain (of Cash)
In an uncertain economy, it’s natu
ral for people to “tighten their belts” by
cutting down on their spending. And
yet by having too much cash on hand
today, you could actually slow your
progress toward your financial goals of
tomorrow.
Before we get to the possible pitfalls
of hoarding cash, let’s consider your fel
low Americans’ recent savings habits:
• How much? In the last quarter of
2008, the personal savings rate was
2.9 percent, the highest level since the
third quarter of 2001, according to the
U.S. Department of Commerce.
• Where? People are putting their
money in what they consider safe vehi
cles. At the end of 2008, the ratio of
money market fund assets and bank
savings deposits to stocks — as mea
sured by the Wilshire 5000 Index, one
of the broadest market indices — was
95.4 percent, according to Ned Davis
Research. (Keep in mind that the
Wilshire 5000 index is unmanaged and
not available for direct investment.)
This ratio is the highest it’s been since
money market accounts were created
in the early 1980s.
Of course, given the stock market
decline, it’s not surprising that so much
money is going into these accounts,
because people are looking, above all
else, to preserve their principal. Conse
quently, as a nation, we are now sitting
on a “mountain” of cash.
However, the trip up this mountain
does not come free. While it’s true that
these vehicles may help preserve your
principal, they may not provide you
with returns that can keep up with
inflation, which means that the more
of these instruments you own, and the
longer you own them, the greater the
likelihood that you will lose purchas
ing power.
Furthermore, if you’re putting most
of your assets into cash, you’re incur
ring “opportunity cost” — the chance
to invest that money into vehicles
that have the potential to provide the
growth you need to help achieve your
long-term goals, such as a comfortable
retirement.
So here’s the situation: On the
one hand, you have a tough economy
and a stock market that has probably
already saddled you with losses.
On the other hand, you need to
consider investing in stocks or other
growth-oriented investments to help
you reach your long-term goals. What’s
the solution? Balance. There’s probably
a place in your portfolio for short-term
"Show Me the Money" Practicum
The Coastal Georgia Regional Devel
opment Center (CGRDC) is hosting
“Show Me the Money,” practicum on
Wednesday, April 29, from 8:30 a.m. to
noon at the Coastal EMC in Midway.
“Show Me the Money” will highlight
options available to finance infrastruc
ture improvements and will introduce
local governments to a range of State
and Federal funding opportunities as
well as provide local government with
knowledge and tools to apply to secure
resources.
Coastal Georgia has experienced sig
nificant growth over the last 20 years
and is anticipated to experience further
growth in the next 10 to 20 years. The
anticipated growth will place stress and
burden on local government’s existing
and future infrastructure needs.
Water and Sewer capacity as well
as routine maintenance will need the
investment of additional financial
resources to maintain the necessary
level of service. The same applies to
transportation infrastructure needs.
Coastal growth has also affected
water and aquatic resources as a result
of increased stormwater runoff impacts
from development. Additional finan
cial resources are needed to manage
and maintain drainage infrastructure
issues and needs as well as to pro
tect water quality, biology and aquatic
resources.
Economic development continues
to be a critical driver for growth and
prosperity in Coastal Georgia. The abil
ity of local governments to implement
successful economic development pro
grams will ensure continued vitality for
the coastal economy into the future.
The economic success, the protection
of natural resources and the ability
to meet local government’s infrastruc
ture needs will be dependent on the
ability of coastal Georgia communities
to secure traditional and innovative
funding sources to meet these various
challenges.
The April 29 Practicum will provide
each attendee with the following: (1) an
overview of the various funding sources
that may be viable for communities in
coastal Georgia; (2) contact information
for the funding options; (3) information
regarding the Federal stimulus bill
and its potential application to coastal
Georgia communities for the various
areas in need of financial assistance
and support.
The session is the third in a six
part series sponsored by the Coastal
Georgia Regional Development Center
and funded in part by the Department
of Community Affairs. The Education,
Outreach, and Technical Assistance
Program of the Coastal Regional Devel
opment Center designed the Practi-
cum’s to assist local governments in
adopting best management practices.
Speakers for “Show Me the Money”
are exceptional and encompass enor
mous expertise in this area and this
should be one of our best sessions,
according to Lupita McClenning,
CGRDC Senior Regional Planner. She
said the three speakers are Brennan
Jones, P.E., Courtney Reich, AICP and
Ron Feldner, P.E.
To register or for more information
about “Show Me the Money,” contact
Lupita McClenning at lmcclenning®
coastalgeorgia.org or 912-262 2871. □
THE ISLANDER, APRIL 27, 2009, PAGE 3
Business Upda
instruments whose chief benefit is help
ing to preserve your principal. But you
may need to balance these holdings
with investments that can potentially
reward you with growth. The exact
mix of assets depends on your risk
tolerance, time horizon and individual
goals.
In these days, you may need a leap
of faith to invest some of your cash.
But history is on your side: Downturns
have typically been followed by market
rallies. Plus, we will eventually see the
unleashing of all that pent-up cash
seeking higher returns, and that force
should have a positive impact on the
financial markets.
It may feel comforting to have a lot
of cash on hand. But if you’re going to
be comfortable in the years ahead, you
should consider putting some of that
cash to work. □
Dr. Chesson to speak
at CWRT meeting
Dr. Mike Chesson, noted author and
Civil War historian, will be the guest
speaker at the Civil War Round Table
of Coastal Georgia on Tuesday, April
28, 7 p.m., at Cargo Restaurant in
Brunswick. His topic will be “The Bat
tle of Ball’s Bluff.”
Dr. Chesson, a native of Richmond,
VA., is the History Department Chair
at the University of Massachusetts in
Boston. Awards include the Found
ers Award from the Museum of the
Confederacy and the Jefferson Davis
Award from the Confederate Memorial
Literacy Society. Admission is $5.00 for
non-members and the public is invited.
For information, call George Staple-
ton at 634-0757. □
ADI
Home
Improvement
Design
Remodeling, additions, kitchen &
bath design, outdoor living
areas and interior design services.
Over 15 years experience in
residential design.
Call to discuss your new home
improvement project,
(912) 638-7884
New from Raye’s Mustard Mill
Select Series Mustard
As the 4th generation of the Rayefamily to operate Raye’s Mustard Mill, we are
carrying on afamily tradition that began in 1900. As the nation’s last remaining
stone mill grinding traditional 100% stone ground mustards, we are proud of the
authenticity of our product, and committed to keeping it that way.
<B'DILIIRMIE¥
IDANIIW
® THE STORE FOR CREATIVE COOKS
638-9545
2465 Demere Road
St. Simons Island, Georgia
