Skip to main content

Your finances: Grandma’s beef stew

May 14, 2015 08:47AM ● Published by Katelyn Nelson

by John Masus

As I reflect back on past experiences, I remember when I was a kid and we would drive down to Springfield to visit Grandma. She lived across the road from the state fair grounds and during the Second World War the fair grounds were used as a military camp for men going overseas. I was told that my grandmother and groups of other women would bake pies and take them over to the troops. Can you imagine? Apple, Blueberry, Banana Cream pies. Wow! I’m told it was a ritual every week.

When we went down to see Grandma, during our visits I remember Grandma’s beef stew. That was a Wow. I think she put everything but the kitchen sink into it with all the seasoning to top it off.

In my previous article, I talked about the five basic investment portfolios. So let’s start with the most conservative: Income with Capital Preservation

As the name implies, this portfolio is for people who want income with the lowest risk. So just like my Grandma’s beef stew, it’s good to have a lot of different things in it to give us the income along with the preservation. I realize that’s like eating the stew without getting fat, but at least we can work toward that goal.

In this scenario we could have laddered bonds of 70 to 80% of the portfolio. That could mean bonds maturing every year (short term) as well as bonds maturing in 10 or 15 years. You pick it.

That gives you the benefit of taking advantage of rising interest rates in the future as the short term bonds mature and you buy new ones at the higher interest rates. The longer term bonds could give you somewhat higher rates right now.

The bonds themselves could be a mixture of investment grade corporate bonds, as well as high yield bonds which means they are not investment grade. They are also subject to higher interest rate credit and liquidity risks than investment grade bonds. The actual mixture is something to determine based on need of income and risk tolerance. The laddering technique is designed to give you diversification in maturity times, types of bonds and interest rates. Diversification.

What about the other 20 to 30% of the portfolio. Stock (equity) portions help with the diversification as well as the objective of income or some growth. If more income is needed, dividend paying stocks may help. Although dividends are not guaranteed, corporations do not like to stop or lower dividend payments and there are many corporations that have paid dividends through thick and thin. Research is in order or the help of a financial advisor.

None of these strategies are a guarantee of success but they do give you some ideas.

 Oh, did I tell you that my wife who is also a grandmother makes great stew. I think I’ll have some. Good Luck! 

John Masus is an LPL registered principal with clients in 24 states. Securities offered through LPL Financial, member FINRA/SIPC.

To contact Mr. Masus you can email john.masus@lpl.com or visit our website at masusfinancial.com. His office has been located in downtown Batavia for 20 years.

The opinions voiced in this material are for general information and not intended to provide specific investment advice for any individual. No strategy assures success or is guaranteed to protect against loss.

Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price. Diversification does not ensure a profit or protect against a loss. Past performance is no guarantee of future results.

News Your finances
  • Tri-Cities Exchange Club Breakfast

    09/26/2017
    07:00AM — 08:00AM

    Every Tuesday morning, 7-8am, men and women meet for breakfast at Colonial Cafe on Randall Road, ...


  • Coat Drive

    09/26/2017
    08:00AM — 05:00PM

    Please help those in need in our community with donations of new or clean, gently-used winter ite...


  • Sculpture on the Prairie

    09/26/2017
    10:00AM — 05:00PM

    Fine Line Creative Arts Center is proud to annouce it's first Sculpture on the Prarie exhibit. E...


  • Wednesday Walking Club

    09/27/2017
    08:00AM — 09:00AM

    Wednesdays, April 5–October 25, 8–9 AM Free drop-in program for all ages Get fit the old-fashio...


  • Wednesday Walking Club

    09/27/2017
    08:00AM — 09:00AM

    Wednesdays, April 5–October 25, 8–9 AM Free drop-in program for all ages Get fit the old-fashio...


  • Coat Drive

    09/27/2017
    08:00AM — 05:00PM

    Please help those in need in our community with donations of new or clean, gently-used winter ite...


  • Sculpture on the Prairie

    09/27/2017
    10:00AM — 05:00PM

    Fine Line Creative Arts Center is proud to annouce it's first Sculpture on the Prarie exhibit. E...


  • Fabyan Villa Museum & Japanese Garden open

    09/27/2017
    01:00PM — 04:30PM

    The Fabyan Villa Museum and Japanese Garden will return to a public hours schedule starting on Su...


  • Million Dollar Quartet

    09/27/2017
    01:30PM

    Paramount Theatre's rollicking 2017-18 Broadway Series opener is Million Dollar Quartet, the wild...


  • Coat Drive

    09/28/2017
    08:00AM — 05:00PM

    Please help those in need in our community with donations of new or clean, gently-used winter ite...


  • Nature Tykes (for 3 year olds)

    09/28/2017
    09:30AM — 10:30AM

    In this program, for 3-year olds and their parents, grandparents or guardians, we’ll explore the ...


  • Sculpture on the Prairie

    09/28/2017
    10:00AM — 05:00PM

    Fine Line Creative Arts Center is proud to annouce it's first Sculpture on the Prarie exhibit. E...


  • Fabyan Villa Museum & Japanese Garden open

    09/28/2017
    01:00PM — 04:30PM

    The Fabyan Villa Museum and Japanese Garden will return to a public hours schedule starting on Su...


  • Little Naturalists

    09/28/2017
    01:00PM — 02:00PM

    In this hour-long program for 4-5-year olds, children will discover the wonders of nature through...


  • Million Dollar Quartet

    09/28/2017
    01:30PM

    Paramount Theatre's rollicking 2017-18 Broadway Series opener is Million Dollar Quartet, the wild...


  • Please join the Batavia Chamber of Commerce, Batavia Mayor Jeffery Schielke, and Batavia represen...


  • Comedy at Zanies

    09/28/2017
    08:00PM

    See nationally known comics along with some of the country’s hottest new talents for a night full...


  • Coat Drive

    09/29/2017
    08:00AM — 05:00PM

    Please help those in need in our community with donations of new or clean, gently-used winter ite...


  • Moms Connect

    09/29/2017
    09:00AM — 10:15AM

    St. John Lutheran Church at 7214 South Cass Avenue in Darien, IL will sponsor a new Bible-based s...


  • Sculpture on the Prairie

    09/29/2017
    10:00AM — 05:00PM

    Fine Line Creative Arts Center is proud to annouce it's first Sculpture on the Prarie exhibit. E...


  • Story Time at Creek Bend Nature Center

    09/29/2017
    10:30AM — 11:00AM

    Treat your child to Story Times at Creek Bend Nature Center. This popular program series is for c...


  • Million Dollar Quartet

    09/29/2017
    01:30PM

    Paramount Theatre's rollicking 2017-18 Broadway Series opener is Million Dollar Quartet, the wild...


  • Comedy at Zanies

    09/29/2017
    08:00PM

    See nationally known comics along with some of the country’s hottest new talents for a night full...


  • Live Entertainment: DJ

    09/29/2017
    09:00PM — 11:55PM

    Join us on historic Bourbon Street in Jambalaya at Pheasant Run Resort every Friday for live ente...


  • LEHSO Resale

    09/30/2017
    07:00AM — 02:00PM

    LEHSO Clothing Resale The Lisle Elementary Home & School Organization clothing resale is a bia...


  • The Holmstad’s 40th Annual Bazaar

    09/30/2017
    09:00AM — 03:00PM

    The community is invited to wrap up their holiday shopping early by stopping in at The Holmstad’s...


  • Sculpture on the Prairie

    09/30/2017
    10:00AM — 05:00PM

    Fine Line Creative Arts Center is proud to annouce it's first Sculpture on the Prarie exhibit. E...


  • Green Fair

    09/30/2017
    10:00AM — 04:00PM

    Eco Vendors, Farmer's Market, Recycling Extravaganza, Green Speakers, Food Trucks, Children's Mak...


  • National Public Lands Day

    09/30/2017
    10:00AM — 01:00PM

    Volunteers are needed to help us plant trees, collect seeds and clear brush at our National Publi...


  • Million Dollar Quartet

    09/30/2017
    01:30PM

    Paramount Theatre's rollicking 2017-18 Broadway Series opener is Million Dollar Quartet, the wild...


  • Comedy at Zanies

    09/30/2017
    07:30PM

    See nationally known comics along with some of the country’s hottest new talents for a night full...


  • St. Charles Singers: Mozart Journey XII

    09/30/2017
    07:30PM — 09:00PM

    The St. Charles Singers will launch its 34th concert season this fall with a new installment of t...


  • Live Music

    09/30/2017
    09:00PM — 11:55PM

    Join us on historic Bourbon Street in Jambalaya at Pheasant Run Resort for live bands every Satur...


  • Comedy at Zanies

    09/30/2017
    09:45PM

    See nationally known comics along with some of the country’s hottest new talents for a night full...


Neighbors Magazines
Neighbors Magazines, 28 South Water Street, Batavia, IL 60510, 630-995-3482, www.welcometoneighbors.com
Contact us