Common Financial Wisdom: Theory vs. Practice

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Jun 062016

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Duane J. Silbernagel Financial Advisor Waddell & Reed

Duane J. Silbernagel
Financial Advisor
Waddell & Reed

Common Financial Wisdom: Theory vs. Practice
Provided by: Duane J. Silbernagel

In the financial world, there are a lot of rules about what you should be doing. In theory, they sound reasonable. But in practice, it may not be easy, or even possible, to follow them. Let’s look at some common financial maxims and why it can be hard to implement them.

Build an emergency fund worth three to six months of living expenses

Wisdom: Set aside at least three to six months worth of living expenses in an emergency savings account so your overall financial health doesn’t take a hit when an unexpected need arises.

Problem: While you’re trying to save, other needs–both emergencies and non-emergencies–come up that may prevent you from adding to your emergency fund and even cause you to dip into it, resulting in an even greater shortfall. Getting back on track might require many months or years of dedicated contributions, leading you to decrease or possibly stop your contributions to other important goals such as college, retirement, or a down payment on a house.

One solution: Don’t put your overall financial life completely on hold trying to hit the high end of the three to six months target. By all means create an emergency fund, but if after a year or two of diligent saving you’ve amassed only two or three months of reserves, consider that a good base and contribute to your long-term financial health instead, adding small amounts to your emergency fund when possible. Of course, it depends on your own situation. For example, if you’re a business owner in a volatile industry, you may need as much as a year’s worth of savings to carry you through uncertain times.

Start saving for retirement in your 20s

Wisdom: Start saving for retirement when you’re young because time is one of the best advantages when it comes to amassing a nest egg. This is the result of compounding, which is when your retirement contributions earn investment returns, and then those returns produce earnings themselves. Over time, the process can snowball.

Problem: How many 20-somethings have the financial wherewithal to save earnestly for retirement? Student debt is at record levels, and young adults typically need to budget for rent, food, transportation, monthly utilities, and cell phone bills, all while trying to contribute to an emergency fund and a down payment fund.

One solution: Track your monthly income and expenses on a regular basis to see where your money is going. Establish a budget and try to live within your means, or better yet below your means. Then focus on putting money aside in your workplace retirement plan. Start by contributing a small percentage of your pay, say 3%, to get into the retirement savings habit. Once you’ve adjusted to a lower take-home amount in your paycheck (you may not even notice the difference!), consider upping your contribution little by little, such as once a year or whenever you get a raise.

Start saving for college as soon as your child is born

Wisdom: Benjamin Franklin famously said there is nothing certain in life except death and taxes. To this, parents might add college costs that increase every year without fail, no matter what the overall economy is doing. As a result, new parents are often advised to start saving for college right away.

Problem: New parents often face many other financial burdens that come with having a baby; for example, increased medical expenses, baby-related costs, day-care costs, and a reduction in household income as a result of one parent possibly cutting back on work or leaving the workforce altogether.

One solution: Open a savings account and set up automatic monthly contributions in a small, manageable amount–for example, $25 or $50 per month–and add to it when you can. When grandparents and extended family ask what
they can give your child for birthdays and holidays, you’ll have a suggestion.

Subtract your age from 100 to determine your stock percentage

Wisdom: Subtract your age from 100 to determine the percentage of your portfolio that should be in stocks. For example, a 45-year-old would have 55% of his or her portfolio in stocks, with the remainder in bonds and cash.

Problem: A one-size-fits-all rule may not be appropriate for everyone. On the one hand, today’s longer life expectancies make a case for holding even more stocks in your portfolio for their growth potential, and subtracting your age from, say, 120. On the other hand, considering the risks associated with stocks, some investors may not feel comfortable subtracting their age even from 80 to determine the percentage of stocks.

One solution: Focus on your own tolerance for risk while also being mindful of inflation. Consider looking at the historical performance of different asset classes. Can you sleep at night with the investments you’ve chosen? Your own peace of mind trumps any financial rule.

Note: It might not always be possible to follow some common financial wisdom.

Note: All investing involves risk, including the possible loss of principal, and there can be no assurance that any investment strategy will be successful.

I hope you found this beneficial and informational. For more information about me and my services, visit my website: or click here.
Thank you for your interest.

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 Posted by at 10:16 AM

City of Toledo Water Quality Report Now Available Online

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Jun 062016

City of Toledo Water Quality Report Now Available Online

Each year, the City of Toledo provides water customers with the annual water quality report (also known as the consumer confidence report). The report informs customers how Toledo’s water quality compares to federal and state drinking water standards. It provides details on the water source and the quality of the drinking water, and it is required by the Oregon Health Administration.

In 2015, the City of Toledo tested and detected contaminants which were well below allowable levels and no health based violations were reported.

In an effort to be more economically and environmentally responsible, the 2015 annual report will not be printed and mailed to each household. However, the report can be viewed online at or simply click here.

Customers can receive a printed version by visiting Toledo City Hall at 206 N Main Street or Toledo Public Library at 173 NW 7th Street in Toledo. Customers can also request a copy by contacting the Public Works Office at 541-336-2247 ext. 2130 or by mailing a request for the report to City Hall, PO Box 220, Toledo OR 97391.

For questions about the report or for more information on how the City of Toledo maintains the safety of the drinking water, contact the Water Treatment Plant at 541-336-2610.

 Posted by at 10:13 AM

Plea to community – It takes a village to house the homeless

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Jun 062016

Safe Haven Project for Lincoln County's homeless.

Grace Wins Haven Project for Lincoln County’s homeless.

Grace Wins Haven

Grace Wins Haven

From Traci Flowers

Please help us raise money to start us on our path to creating a micro house community for the homeless in LincolnCounty. We are raising money in June to pay for legal fees and pay for future fundraising promotion.

Grace Wins Haven is on a mission to assist and train unhoused citizens of Lincoln County. We are setting goals for individual living by organizing community resources. We will provide stable, healthy living conditions while providing security and a place for low or no income individuals to re-learn working and life skills.

After our first round of fundraising, our goal will be to raise money to purchase land and build the commons area shelter that will house 30- 40 people for veterans, individuals, and couples while continuing to build the micro houses for the first haven.

It takes money to raise money, please help us to Help the Haven. Here’s the Go Fund Me account: Click here.

 Posted by at 8:38 AM

Big garage fire at 1040 N. Bayview Court, north side of Alsea River

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Jun 052016

Fully engulfed garage fire that is threatening the house.  Command is calling for more engines and water.

Fully engulfed garage fire that is threatening the house. Command is calling for more engines and water.
Google Maps

Report of a large garage fire at 1040 N. Bayview Court, just across the Alsea River from Waldport. Arriving fire units say they see flames and smoke. The garage is detached but believed to be very close to the house.

Very tight quarters on the scene. Fire command telling incoming firefighters that they’ll be using their “deck guns” atop their rigs rather than just using hose water. The garage is really going.

Fire command is requesting a Newport Fire crew standby at Seal Rock Fire Station for coverage. Also a Newport Fire Rescue is responding to a medical emergency on North Beaver Creek Road.

Power company is being summoned to the scene to disconnect power to the residence.

Yachats Fire-Rescue also enroute.

Fire command says they’re making good progress at knocking the fire down. They still need two more tenders full of water to get on scene ASAP. Dispatch says they’re trying to find some available.

Request has gone out for a Toledo Fire crew to man an engine and head for Newport to help in coverage for Newport while Newport crews are on the Bayview fire and responding to a medical emergency on North Beaver Creek Road.

Depoe Bay Fire and Toledo Fire are sending tenders to aid in fighting the fire and providing water for mopping up.

Early in the fire, the occupants of the home evacuated as a precaution. No reports of any injuries thus far.

Sounds like they’ve got a good handle on the fire. Getting more water by running one of the tenders they’ve got down to a water supply, filling ’em up, and headed back to the fire. Two other tenders are arriving in the area. They’ll soon join a water shuttle bucket-line type operation to keep putting water on what’s left of the fire. Sounds like it burned pretty hot. Vehicles inside the garage.

Any citizen photos can be emailed to:

 Posted by at 9:29 PM

Sensum by N.R. Adams

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Jun 052016

Available from

Available from

If you have to work that hard to fit in or to rebel, you’re not following your heart and it’s not real.

You’re putting on a show, just like everyone else.

Find your own truth path. Don’t fake yourself out.

Sensum: Available at

 Posted by at 8:08 PM

Another running of the Newport Marathon

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Jun 052016

Finishing Times
Male Participants
1.Daniel Kinsella 2:37:42
2.Rob Russell 2:39:23
3.Heath Wiltse 2:44:40
4.Aaron Beddes 2:47:11
5.Shawn Fisher 2:48:05

Female Participants
1.Katie Wolfe 2:58:20
2.Lauren Horne 3:05:32
3.Tara Struyk 3:07:38
4.Dawn McElvain 3:09:21
5.Miriam Udosenata 3:18:26

Newport Marathon runners in Nye Beach.... Doris Posner photo

Newport Marathon runners in Nye Beach….
Doris Posner photo

For all the details of the race go to the Newport Marathon website at: Newport, or just click here.

 Posted by at 6:35 AM

Toledo CC wants to help low income pay their water bills

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Jun 052016

Helping low income seniors and others pay their water bills.

Helping low income seniors and others pay their water bills.

The Toledo City Council has taken a step toward helping low income water users in town to pay their water bill.

The H2O low income water program was actually started last year, but never got the other half of it going – actually qualifying residents who need the assistance. But now they’re rolling.

The council is announcing in everyone’s water bill that if they’re low income they can get help through the Community Services Consortium (CSC) that is collecting donations to help pay the water bills of low income residents. A similar program is being talked about to help low income families with their power bills as well.

The consortium is also in charge of letting everyone know that if they’re not low income and they have a few extra dollars to spare to help a neighbor or two make ends meet on their water bill, there’s a place where they can donate. Again, the information is in everyone’s water bill or you can call CSC at (541) 574-2280 or Toledo City Hall.

To qualify for assistance a household must make no more than 60% of the community’s median income – that median income is around $45,000 – and 60% of that is right at $27,000. So if you make $27,000 a year or less you qualify for up to $100 a year in water bill payment assistance. Right now CSC is taking applications from low income families. There is currently nearly $2,100 in assistance monies in that fund waiting to be allocated to low income households.

Toledo City Councilors don't want this going on close to the town's drinking water. BLM photo

Toledo City Councilors don’t want this going on close to the town’s drinking water.
BLM photo

Enhancing tree growth at Mill Creek Reservoir without using herbicides
The Toledo City Council, sensitive to the recent upwelling of opposition to using herbicides near bodies of water that provide human drinking water, the council took steps to ensure that herbicides are not used near Mill Creek Reservoir.

Thanks to a one year grant, the city will have the funds to manually clear competing plants on the forest floor in areas recently harvested for timber in the Mill Creek area. It’s a five acre parcel along Mill Creek. It is also a site where 1,800 seedling trees will be planted to create another cycle of wood growth in the Mill Creek Watershed. Those seedlings will include Western Hemlock, Red Cedar and Douglas Fir. The manual preparation of the ground for planting will run around $20,000 – roughly $15,000 from a grant, and $5,000 in matching funds from the City of Toledo.

City officials hope that when further plantings are made two and three years out there will be further grants available to manually clear the ground of competing brush to make way for the seedlings that will be planted right after.

With the recent flurry of opposition to forestry herbicide spraying with their wayward clouds of herbicides allegedly making some residents sick, Toldeo city councilors were very supportive of handling tree planting preparations in a way that doesn’t require aerial or ground spraying of herbicides.

Toledo Municipal Pool Old, needs a lot of work, including the roof.

Toledo Municipal Pool
Old, needs a lot of work, including the roof.

Trying to keep the Toledo Pool open while plans are made for a new one.
The Toledo City Council is also trying to figure out how to keep the old Toledo Municipal Pool open until a way can be found to build a new one. One idea is to create a new recreation district stretching far beyond the Toledo city limits to include enough properties to raise enough revenue to build a new pool that hopefully everybody in the new district will want to use and enjoy.

A group of citizens that are focused on a new special recreation taxing district have set a deadline of December 31st for a final plan to be submitted to the city council for consideration. If the plan doesn’t get enough support, it could be the end of the old pool. City staff says the city has many projects that are required to be built for public health and safety and with the pool costing the city a quarter million a year just to operate, that’s a big piece of the city’s annual budget that could be going to other things.

The old pool is literally falling apart to hear some city employees describe it. But if the citizens committee can come up with a plan that has some legs to broaden the pools funding sources, the Toledo area just might get a new pool.

 Posted by at 1:06 AM