How can I manage my short-term needs while maintaining my long-term financial goals?

Being financially healthy isn't solely about saving and investing. The other side of the balance sheet includes borrowing money and managing debt. While these may not generate income for you, they can be important and powerful financial tools for your portfolio.

Your Needs
After all the times you've been told that debt is bad, why would we suggest otherwise? It's not that we advocate borrowing a lot of money or accruing large sums of revolving, high-interest debt. But sometimes it's actually a realistic strategy to borrow for your short-term financial needs.

For example, if you need cash for an emergency, or for a home renovation or new car, you shouldn't dip into your long-term investments. Holding onto investments for the long haul is an important cornerstone of our investment philosophy. If you haven't owned your investments long enough for growth opportunities, or the market isn't doing well, the last thing you want to do is pull your money out. Rather than selling your securities and taking a loss, you can apply for a personal line of credit* from Edward Jones, which allows you to borrow against your investments.

A mortgage is another example of when it makes sense to borrow money. Owning a home is one of the great American dreams, but very rarely do we have the reserves to purchase one outright. Edward Jones offers mortgages** that can help you with one of the largest purchases you'll ever make. And, while you take on great debt in doing so, the equity you acquire with a home is a great financial tool. There might be a time that you want to leverage it and apply for a Home Equity loan, which uses the equity you've already built in your home to provide access to cash.

The Balance of Credit & Liquidity
While borrowing can be a smart strategy for the short-term, carrying excessive debt should be avoided. We believe the most important thing you can do for yourself is be conscious of balancing your credit and liquidity to remain financially healthy.

Learn More
To learn how Edward Jones can help manage and credit and liquidity needs, contact your local financial advisor. We'll talk to you one-on-one about your financial goals, credit needs, and we can provide a complimentary portfolio review to ensure you're looking at the big picture.

*Edward Jones offers various borrowing solutions, including our Personal Line of Credit, which is a margin account. Borrowing against securities has its risks and is not appropriate for everyone. If the value of your collateral declines, you may be required to deposit cash or additional securities or the securities in your account may be sold to meet the margin call. Interest will begin to accrue from the date of the loan and can be charged to the account. Available only on certain types of accounts.

*Financing is provided by Edward Jones Mortgage, LLC, an affiliate of Edward Jones. Edward Jones Mortgage, LLC is licensed by the New Hampshire Banking Department. Edward Jones Mortgage, LLC may not be available in your area. Equal Housing Lender. ©2007 Edward Jones Mortgage, LLC. All Rights Reserved.