Newspaper Page Text
Financial
L J
Focus
Reported by Sonny Doehring
When Investing, Learn Aspects of Risk
In life, you can’t avoid all risks - and
you shouldn’t try, because endeavors
that carry risk also bring the prospect
of reward. And it’s certainly the same
in the investment world. So instead
of trying to invest risk-free, which is
impossible, learn to recognize the dif
ferent types of investment risk while
becoming familiar with your own risk
tolerance.
To start with, let’s quickly look at
some of the most common forms of
investment risk:
• Risk of losing principal - This is
the type of risk most commonly asso
ciated with investing. You could lose
some, or even all, of your principal if
you sell an investment, such as a stock,
whose value has dropped lower than
the purchase price. You can’t eliminate
the risk of losing principal, but you
may be able to reduce it by buying
quality stocks and holding them long
enough to overcome short-term market
drops.
• Inflation risk - With an invest
ment that pays a fixed rate of return,
such as a certificate of deposit (CD),
you run the risk of not keeping up with
inflation, which means you could lose
purchasing power over time. Conse
quently, it’s a good idea not to “over
load” on these types of investments.
• Interest-rate risk - When you own
a bond, your investment is somewhat
at the mercy of changing market inter
est rates. For example, if you buy a
bond that pays four percent interest,
and market rates rise so that newly
issued bonds pay five percent, the rela
tive value of your bond will go down; no
one will pay you face value of your bond
when they can get new ones that pay
higher rates. Of course, if you hold your
bonds until maturity, which is often a
good idea, you can avoid being victim
ized by interest-rate risk.
• Concentration risk - This type of
risk occurs when you have too much
of your money concentrated in one
area, such as in a particular stock or
in one industry. If a downturn strikes
that stock or industry, your portfolio
could take a big hit. To combat this
type of risk, you need to diversify your
holdings among stocks, bonds, govern
ment securities and other investments.
While diversification, by itself, cannot
guarantee a profit or protect against
a loss, it can help reduce the effect of
volatility.
In addition to understanding the
above types of risk, you also need to be
familiar with your own risk tolerance
and how it affects your investment
strategy. If you are constantly worried
about “the market,” you’ve probably got
too many investments that are at risk
of losing principal. At the other end
of the spectrum, if you’re always con
cerned that your portfolio won’t grow
enough to generate the income you’ll
eventually need for retirement, you
may be investing too conservatively
- and, as a result, you’re inviting infla
tion risk.
Ultimately, you need to match your
own risk tolerance with a strategy that
allows you to achieve your goals. This
will require self-awareness, patience,
discipline - and, at times, a willing
ness to move outside your own “com
fort zone.” By learning to balance and
manage risk, you can ultimately put
yourself in a position to pursue your
investment strategy. □
Living on St. Simons, Ed Kellis has become a neighbor
and professional that you can trust. With more
than 25 years floor covering experience, Ed Kellis is
Brunswick Floors expert for the islands. Call Ed today
at 638-9119 or 223-3127 for a free in-home estimate.
tiTO^Fy 1
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Prime Retail and Office Space
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Variety of Rental Options Available
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THE ISLANDER, MAY 10, 2010, PAGE 3
Business Update
McKinnon airplane parking ramp completed
New parking ramp at McKinnon St. Simons
Island Airport is complete.
Aircraft have a new place to
park at McKinnon St. Simons
Island Airport now that the
main concrete parking ramp
has been completely rebuilt.
The massive project to replace
a cracked, 60-year-old ramp
came in on time, on budget
and includes a 2,300-foot-long
ramp, new lighting, fencing,
and asphalt cut-throughs to
the taxiway.
The project, which began
in June 2009, was done in five
phases and involved removing
the old parking ramp, or apron,
and laying down 520,076
square feet of replacement concrete 10
inches thick. The concrete was poured
on top of a six-inch stone base made
from crushed concrete.
The new ramp is designed to hold
typical general aviation airplanes
weighing some 45,000 pounds, as well
as the occasional 90,000-pound air
plane.
“Seaboard Construction Company
and its concrete subcontractor, Civiltec
Inc. from Valdosta, deserve high praise
for managing the project so efficiently,”
said Steve Brian, executive director of
the Glynn County Airport Commission.
“Construction crews worked long hours
— in some cases seven days a week — to
make it happen. And not only was the
work done on time, it was completed
Islander staff photo - Shierling
with exceptionally high quality.”
Brian added that, with the comple
tion of the $6 million concrete project,
McKinnon is “now prepared to handle
aircraft of all sizes in closer configu
ration to the terminal, making the
airport more efficient for customers.
The new concrete will allow the airport
to go another 60 years providing safe
and structurally sound parking for the
multi-million-dollar aircraft visiting
the Golden Isles on a daily basis.”
The airport commission was the
recipient of the largest aviation federal
stimulus grant in the state of Georgia
for the ramp replacement. It was one
of the first “shovel-ready” projects to
take advantage of the federal funding
program in 2009. □
Passport to the Century
Visit two restored cottages filled with rich tales of the Jekyll Island
Club in the American Gilded Era and elegant furnishings.
Daily | 11 a.m.; 1 p.m. & 3 p.m.
$16 Adults, $7 Children 6-12 (Free under 6).
Historic Faith Chapel
Enjoy the charming chapel, delight in the architectural whimsy of its
gargoyles, Tiffany and Armstrong stained glass windows.
Daily (Subject to Private Rentals) | 2-4 p.m. | Free
Self-Guided Walking Tours
Purchase a souvenir guidebook full of the museum’s archival images
to explore and genuinely appreciate Jekyll Island National Historic
Landmark District’s detailed architecture and rich history.
Daily | 9 a.m.-5 p.m.
(912)635-4036 | e-mail: info@jekyllisland.com
Additional specialty tours for parties of 20 or more.
Availability & pricing subject to change
(jekyll island)
jekyllisland.com
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