August 16, 2016 • Page 2 shop online at www.missourivalleyshopper.com Dave Says Learning And Living By Dave Ramsey Dear Dave, I’m a recently retired widow, and my husband always took care of most of our finances. We never had any debt, but after starting to learn a little bit about how money works, I’m worried that there may be too much of it invested in CDs (certificates of deposit). The total nest egg is a little over $1.5 million, with $300,000 of that in CDs. There’s also a $317,000 annuity, a 403(b) and around $900,000 in IRA mutual funds. I also have two homes and a new car that are paid for. How do you think I should handle things going forward? —Joan Dear Joan, I’m really sorry to hear about your husband, but you two did a fantastic job with your finances. You’re worth at least $1.5 million, and you have no debt. You’re set for life, but you’re wise to want to be careful. The CDs give you some stability, but obviously they’re not earning much of anything. I think of them as money kicked up in a hammock — it’s not working for you. You both worked hard for that money, so personally I’d like to see it working hard for you now. If you’ve had good luck with a variable annuity, that’s fine. You’ve also had very good luck with your mutual fund investing. So, with all this money in different areas, you’re definitely diversified. It’s just a matter of wrapping your arms around it all and developing a deeper understanding of things going forward. At this point, I would urge you to find an investment professional in your area with the heart of a teacher — someone who’s not trying to sell you Dave stuff. You want to learn, Joan, and I’m really impressed by that. It’s a smart and necessary thing. Every time you see an investment person, whoever it may be, your goal should be to leave the room smarter and with more understanding than you had before. —Dave RAMSEY Buy the car? Dear Dave, My wife and I are 31 years old, and we have no debt except for our home. We also have an emergency fund and college savings in place for the kids. Over the last several months we’ve saved $22,000 for a newer car, but we’re also worried about retirement. We’ve been putting 15 percent of our income toward retirement, and we’re concerned that maybe we shouldn’t spend the whole $22,000 on a car. We make around $100,000 annually and have $50,000 in our nest egg. What do you think, Dave? —Brandon The evening was one of those that come back to you time after time, year after long year. It comes back and whispers of how good life can be when you’re well fed, enjoying life, and a good friend shares the front porch with you on a summer’s evening. It was that way with Doc and Steve the other night. Doc thought he might have to do a scientific paper on the soporific effects of ice tea, fried chicken, and corn on the cob. As long as it didn’t take any effort. So when this huge meal had been bull-snaked down, the two grinning friends came out to the porch to watch the sun go down behind the trees along Lewis Creek. The air had that orange and russet glow, and the breeze, that little one that caresses the neck, came slowly down from the hills and made their shirt collars wiggle ever so slightly. It was like taking a dry bath in paradise. Doc sidled up to one of the porch posts and gently tested it to see if it could hold the extra weight he was carrying with that meal. It stood fine, so he leaned against it seriously and looked out on the evening’s warmth. Steve, who was enjoying having a fine meal that someone else cooked for a change, leaned against the post on the other side of the steps. And then they just stood quietly, watching the day make beautiful skies as it ended. The shadow on the ground foretold the presence of the circling bird. Doc and Steve paid no attention at first. Then a few minutes later, it was joined by two more circling birds over Doc’s house. Dave Ramsey is America’s trusted “Buzzards,” Steve mumbled. voice on money and business, and CEO “Yep,” said Doc. of Ramsey Solutions. He has authored They circled some more. seven best-selling books. The Dave “I think one of us should move a little …” said Doc. Ramsey Show is heard by more than 11 “Move?” million listeners each week on more than “Well … to let them know … you know.” 550 radio stations and digital outlets. Steve sighed, then glanced over at Doc. “Flip you for it.” Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com. Dear Brandon, In your situation, a $22,000 car is not unreasonable at all. You guys are both 31 years old, and you’re going to be in great shape for retirement if you just keep doing what you’ve been doing. On top of all that, you’ve got your emergency fund in place, in addition to a nest egg and car savings. If I’m in your shoes, I’d go out and find the best car $22,000 can buy. You’re doing all the right stuff. Your kids can go to school debt-free, and you’re going to have the house paid off in no time. In short, you’re going to retire multi-millionaires at the rate you’re going — as long as you keep on keeping on! Think about this, too. As a general trend, most people’s incomes go up throughout their lifetimes. That being the case, chances are you’re going to make and invest even more money in the years ahead. You and your wife could easily retire with $5 million to $10 million sitting there. You’ve done a great job together, Brandon. Keep up the good work, and enjoy that car! —Dave Creepy Crawly What! A Bug? Crop Insurance Considerations BROOKINGS, S.D. - The variable moisture levels and growing conditions have led to wide disparity in crop progress and conditions. Matthew Diersen, Professor & SDSU Extension Risk/ Business Management Specialist said that farmers with crops that are either stressed by a lack of rain or being considered for alternative uses should consider the type and level of crop insurance coverage they purchased. “Most field crops in South Dakota are covered by Federal crop insurance sold by private insurance agents,” Diersen said. Although the most common product is Revenue Protection, Diersen explained that in several counties in western South Dakota, dryland corn may be covered by Noninsured Crop Disaster Assistance Program, which is administered by the USDA’s Farm Service Agency. be growing and progressing and the indemnity payment with Revenue Protection coverage is not settled until the harvest period.” Diersen said that if the price level increases during the growing season, the coverage may be higher than originally calculated in March 2016, thus changing the value of the corn as grain. The other feature of Revenue Protection is the price component, which is particularly relevant when the crop has been forward priced or is slated for onfarm feed use. “Again, the final guarantee value with Revenue Protection is not settled until harvest. Price rallies earlier in the growing season for corn and soybeans gave farmers an incentive to forward price crops that may not be performing as expected,” Diersen explains. “Farmers will want to make sure they have not committed or will not commit more bushels than their insurance guarantee can support.” A farmer intending to raise corn for on-farm feed use would also see the guarantee fluctuate. “If the price of corn increases by harvest, the guarantee will increase also, leading to a higher indemnity payment that could be used to purchase replacement feed,” Diersen said. Noninsured Crop Disaster Assistance Program coverage does not have the price component feature. “Thus, farmers with Noninsured “Droughts, storm damage, etc. would be natural causes of damage to a crop, ultimately affecting the yield,” Diersen said. “Such events would be covered by insurance. Farmers should review their coverage on any crops that are susceptible to losses to make sure they understand what they have in place.” Diersen explained that most insurance coverage is specifically designed for the crop to be harvested as grain. In the case of corn, where it can be harvested for silage or hay for feed needs, instead of for grain, the farmer should check with their insurance agent so as to not negatively affect their coverage. “The value of the silage should exceed the value of the crop harvested as grain plus any expected indemnity payment,” Diersen said. “This may be difficult to calculate as the crop may still Let Our Family Business keep yours in the go with: • Farm Filters • Hydraulic Hoses • Bearings & Seals Cox Auto Prices ! ed Reduc 1007 Broadway Ave. • Yankton • 665-4494 Boots & Shoes Sale Waterproof FREE SOCKS with boots Boston Shoes to Boots 312 W. 3rd • Yankton • 665-9092 Crop Disaster Assistance Program on corn with feed needs should look at other risk management tools to protect themselves from upside price risk,” he said. Insurance coverage options for forages are also available. In South Dakota alfalfa can be covered by Forage Production insurance. Noninsured Crop Disaster Assistance Program is commonly used on nonalfalfa hay and pasture acres. “Forages, when covered, are only protected against yield losses, leaving farmers with feed needs susceptible to higher costs not offset by higher indemnity payments,” Diersen said. “The other common protection, Pasture, Rangeland, Forage (PRF) coverage, has already paid indemnities to those that purchased it. PRF coverage extends to the end of the calendar year.” By understanding the type of coverage they have in place, farmers can better manage through challenging conditions. If you have questions, contact Diersen by email. niGrow BROOKINGS, S.D. - This summer Sanborn, Aurora, JerauldBuffalo Counties, 4-H members were able to take part in a two part series entitled Creepy Crawly What... A Bug? 4-H youth were able to learn about entomology, the study of insects and use that knowledge to create an insect collection. Insect collections for first year participants need to include 15 different insects from a minimum of three different orders. “Last year the project was piloted in Sanborn County. We are excited to extend the project to all four of the counties I work with this year with the help of a grant provided by the SD State 4-H Leaders Association,” said Audra Scheel, SDSU Extension 4-H Youth Program Advisor - Sanborn, Aurora & Jerauld/Buffalo Counties. Creepy Crawly Overview Day 1: Youth learned what an insect is, how an insect develops, how insects are classified and where to look for them. Youth were instructed to put their insects into plastic containers and then into the freezer. “Make sure you give your mom a heads up!” Scheel reminded participants. Day 2: Youth brought their frozen specimens to the workshop and Amanda Bachmann, SDSU Extension Pesticide Education & Urban Entomology Field Specialist, taught them how to correctly pin and label our insects. “Connecting with the outdoors and slowing down to look at the space around us is something I think we take for granted,” said Scheel. “The 4-H youth did a great job collecting insects; it is fun to see what they find.” Twenty-three youth participated in the two-day event. Scheel hopes to expand the event in 2017. “Each year more insects can be added to collections. I’m excited to see everyone’s collections at Achievement Days,” she said. niGrow Dining WE & Entertainment S LD COUPON DC Lynch Shows 2002 T600 Kenworth Series 600 Detroit 18 Drawer Bottom Roller Cabinet With 10 Speed August 19–20–21 Road Ready Condition $22,500 HAY TARP SALE! 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