The View 38002 March 2020 The View March 2020 | Page 4

Page 4 | MARCH 2020
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FINANCIAL FOCUS 7 TIPS
By Bret Massey, Edward Jones Financial Advisor,
Special to THE VIEW 38002” By David B. Peel, Special to THE VIEW 38002
KNOW THE FOUR USES
OF CASH
CARS VERSUS PHYSICS
A
I
t’s important to have cash avail-
able for your everyday spend-
ing and the inevitable rainy day.
However, you also need to develop a
cash strategy that can contribute to your
long-term fi nancial success. But just
how much cash do you need? And in
what form?
To answer these questions, it’s useful
to look at the four main uses of cash:
 Everyday spending – Your everyday
spending includes the cash you use for
your mortgage, utilities, groceries and
so on. As a general guideline, you should
have one to two months of living expenses
available during your working years, and
perhaps a year’s worth of living expenses
when you’re retired. (Th e latter can be
adjusted higher or lower based on your
income from Social Security or a pension.)
You’ll need instant access to this money
– and you need to know your principal
is protected – so it may be a good idea
to keep the funds in a checking or cash
management account.
 Unexpected expenses and emergencies
– If you needed a major car repair or a
new furnace, or if you incurred a big bill
from a doctor or dentist, would you be
able to handle the cost? You could – with
an established an emergency fund. During
your working years, this fund should be
big enough to cover three to six months
of living expenses; when you’re retired,
you may be able to get by with one to three
months’ worth of expenses, assuming
you have additional sources of available
cash. You’ll want your emergency fund
to be held in liquid vehicles that protect
your principal, such as savings or money
market accounts or short-term certifi -
cates of deposit (CDs).
 Specifi c short-term savings goal(s) –
At various points in your life, you may
have a specifi c goal – a new car, vacation,
wedding, etc. – that you’d like to reach
within a year or two. Your fi rst step is to
identify how much money you’ll need, so
think about all the factors aff ecting the
fi nal cost. Next, you’ll need to choose an
appropriate savings vehicle. You could
simply put more money in the accounts
you use for everyday cash, or even in your
emergency fund, but you would run the
risk of dipping into either of these pools.
Instead, consider opening a separate
account – and tell yourself this money
is for one purpose only.
 Source of investment – You can use
cash in two ways as part of your overall
investment strategy. First, cash can be
considered part of the fi xed-income
allocation of your portfolio (i.e., bonds
and CDs). Because cash behaves diff er-
ently from other asset classes – such as
stocks and bonds – it can help diversify
your holdings, and the more diversifi ed
you are, the less impact market volatility
may have on your portfolio. (However,
diversifi cation can’t guarantee a profi t
or protect against all losses.) Th e second
benefi t of cash, in terms of investing,
is it’s there for you to purchase a new
investment or to add more shares in an
existing investment. In any case, you
probably don’t want to be too cash heavy,
so you might want to keep no more than
10% of your fi xed-income assets in cash.
As you can see, cash can be valuable
in several ways – so use it wisely.
ccording to Newton's fi rst law,
an object in motion continues in
motion with the same speed and
in the same direction unless acted upon
by an outside force. In my injury prac-
tice, that outside force is often another
car on yours.
All objects resist changes in their state
of motion, or put another way, objects
tend to keep on doing whatever they're
doing. Whether they are at rest or in
motion. Th is is “inertia.” Inertia is very
commonly experienced when riding in
automobiles and motorcycles.
Th e key to survival is to slow down the
deceleration rate. Th is is easier under-
stood in an example:
Let’s say you are driving down Austin
Peay Highway at 60 mph and a loaded
dump truck runs a red light. Your car
then hits the 50,000 lb. dump truck
broadside, in the classic T-Bone crash.
Th e resulting force of course, acts
upon your car to begin to crumple it.
Your engine drops, your steering column
buckles, and your frame bends. Th is is
crash number 1: Your Car’s crumple zone
vs the truck.
Th e metal only gives so far, and your
car decelerates violently to a sudden
stop. Th is is crash number 2.
You and the unfortunate passengers
in your car will now continue at 60 mph
until the seat belts lock down. Th is “out-
side force” of the seat belts slows the
occupants violently. Th is is crash number
3. (Th e humans’ deceleration also will be
slowed by expanding frontal airbags, if
your car is so equipped.)
If no seat belt is worn, the passengers
in motion would continue in motion.
Th ey will likely be propelled from the
car becoming projectiles and continue
in motion.
Buckle up ya’ll!
Mr. Peel seeks justice for those injured
in tractor trailer and car accidents, med-
ical malpractice, and disability. He often
addresses churches, clubs and groups
without charge. Mr. Peel may be reached
through PeelLawFirm.com wherein other
articles may be accessed.
Personal Injury
Motor Vehicle Accidents
Motorcycle Accidents
Daycare Injuries
Medical Malpractice
Pharmacy Malpractice
Nursing Home Neglect / Abuse
Accidental Shootings
Thank You
Veterans!
Medical Malpractice
Brain Injuries & Birth Injuries
Spinal Cord Injuries
Misdiagnosis
Failure to Diagnose Cancer
Medication Errors
guiding the injured
to better results
Social Security Disability
Nursing Home & Bedsores
Wills
Tractor Trailer Accidents
Power of Attorney
Living Wills
Health Care Power of Attorney
LIFE MEMBER
M illion D ollar a Dvocates F oruM
M ulti -M illion D ollar a Dvocates F oruM
The Top Trial Lawyers in America TM
AMERICAN
ASSOCIATION for
David B. Peel
JUSTICE
Attorney At Law
See Article:
“Can A Christian Sue?”
on website
For More Info:
901-867-0545
[phone]
8582 Highway 51 North  

Millington, TN
As Heard on WCRV 640
As Seen in:
The Millington Star
The Covington Leader
The View 38002
www.PeelLawFirm.com
www.ArlingtonTNChamber.com
info@ ArlingtonTNChamber.com
We’re more than just a great rate
Bank-issued, FDIC-insured
2.60 %
Calling for restaurants and sponsors interested in participating
in the 2020 Chamber hosted tasting event. Event includes a
silent auction benefiting Northeast Shelby County Kiwanis.
Contact the Chamber office for details to participate.
Minimum deposit $5000
3-month APY*
Finding a great rate on a CD is nice, but if
you want to get the most out of your CDs,
you need a strategy. If you’re looking for
potential ways to generate additional income
without tying up your money for years, to
learn more, call today.
* Annual Percentage Yield (APY) effective 03/03/2020. CDs offered by Edward Jones are bank-issued and FDIC-insured
up to $250,000 (principal and interest accrued but not yet paid) per depositor, per insured depository institution, for each
account ownership category. Please visit www.fdic.gov or contact your financial advisor for additional information. Subject
to availability and price change. CD values are subject to interest rate risk such that when interest rates rise, the prices of
CDs can decrease. If CDs are sold prior to maturity, the investor can lose principal value. FDIC insurance does not cover
losses in market value. Early withdrawal may not be permitted. Yields quoted are net of all commissions. CDs require the
distribution of interest and do not allow interest to compound. CDs offered through Edward Jones are issued by banks and
thrifts nationwide. All CDs sold by Edward Jones are registered with the Depository Trust Corp. (DTC).
Tickets before April 1st: $15 Adults - $5 Children 5-12
Tickets at the door: $20 Adults - $5 Children 5-12
Contact the Chamber Office online: www.arlingtontnchamber.com
Bret Massey
Financial Advisor
11125 Highway 70 Suite 103
Arlington, TN 38002
901-867-1141
edwardjones.com
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