On April 22, we celebrate Earth Day, which is devoted to education and action on environmental issues. As a citizen of the world, you may have a keen interest in protecting your physical surroundings. And as someone trying to reach long-term financial goals, such as a comfortable retirement, you’re probably also interested in improving your investment environment.

So here are a few suggestions:

• Respond to environmental factors. Over the past few years, we’ve had a favorable investment climate, marked by low inflation, low interest rates and generally strong corporate profits. And investors who have taken advantage of this positive environment have, for the most part, been rewarded.

But things can change, so it’s always a good idea to understand the current investment environment, as it may affect your investment choices.

For example, if it seems likely that long-term interest rates will rise significantly, you might need to review your long-term bond holdings, as their price would be negatively affected by a rise in rates.

• Nurture your investments. One area of environmentalism involves planting seeds or saplings and nurturing them to maturity. You can do the same thing with investments — and a good way to nurture them is to give them time to grow in all investment climates.

How long should you hold these investments? Well, you might heed the advice of Warren Buffett, one of the world’s most famous investors, who says this about his investment company: “Our favorite holding period is forever.”

It takes patience to follow the buy-and-hold strategy favored by Mr. Buffett — and it also requires the discipline necessary to keep investing through the inevitable downturns you will encounter. But over the long term, your perseverance may well be rewarded.

• Avoid “toxic” investment strategies. Unfortunately, many human activities are bad for the environment. Similarly, some investment strategies are “toxic” for your prospects of success.

Consider the pursuit of “hot” stocks. They sound inviting, but by the time you hear about them, they may have lost their sizzle — and in any case, they might not be right for your needs.

Here’s another “poisonous” investment strategy: trying to “time” the market. If you’re always jumping in and out of the market, looking for “low” points to buy and “high” points to sell, you’ll probably be wrong most of the time — because nobody can accurately predict highs and lows.

Even more importantly, you may find yourself out of the market during the beginning of a rally, which is when the biggest gains tend to occur. 

• Diversify your “species” of investments. The United Nations, drawing inspiration from Earth Day, has designated 2011–2020 as the United Nations Decade on Biodiversity. And, just as preserving the diversification of species is important for life on Earth, diversifying your investment portfolio is essential for its health.

By owning a variety of investments — stocks, bonds, government securities, certificates of deposit and so on — you can help protect yourself from downturns that primarily affect just one asset class. (Keep in mind, though, that while diversification can reduce the effects of volatility on your holdings, it can’t guarantee profits or protect against loss.)

Earth Day happens just once a year — but environmentalism lessons can help you, as an investor, for all the days and years ahead.

Joe Faulk is a financial adviser.

This article originally appeared on Crestview News Bulletin: FINANCIAL FOCUS: Celebrate Earth Day by improving your investment environment

EDITOR'S NOTE: April is National Financial Literacy month, so we appreciate a local financial adviser and loan officer for sharing tips on how residents can reach their financial goals. We hope their advice will inspire you.

Here is advice from experts. In addition, you can read a non-expert's view: from home cooking to thrifting, here.

•••

CRESTVIEW — Before you can reach a financial goal, you have to identify financial holes.

That is, unnecessary expenses that appear on monthly bank statements, said Yvonne Shanklin, a financial adviser at Edwards Jones in Crestview.

Planning a budget for regular purchases — like grocery store trips, for example — helps, she said.

"People need to be more money aware and have a reasonable allowance in mind," she said.

Derek Lott, president of CCB Community Bank in Crestview, agreed.

"It's the best thing to have," he said. Having a written, measurable budget would allow people to see how their money is spent, Lott said.   

"Roughly 40 percent of your total income should go towards paying bills (or debt)," Lott said.

Cash is king

Instead of using a debit or credit card to pay for groceries, Shanklin suggests withdrawing a set amount of cash to purchase groceries.

The limited amount could help people save money, particularly if they eat less at restaurants, she said. 

"Make eating out more of an (occasional) event, other than a just a standby option," she said.

Look for rewards

Looking for business' rewards or incentive programs, whether at gasoline stations, grocery stores or hotels, could help your bank account balance, according to Lott.

"With these incentive programs, you could save … 5 to 10 percent (on monthly expenses)," he said.  

Tax refunds

Spending tax refunds wisely is another part of a healthy financial plan, Shanklin said.

Use the refund to pay off debt; after that, see if some of it can go toward retirement, she said. The earlier people begin saving for retirement the better.

Big purchases

Residents thinking about buying a home or vehicle should consider meeting with a financial adviser to review options, regarding mortgages or loans.

The expert advice could mean the difference between a realistic deal within the household's means or a financial burden.

Email News Bulletin Staff Writer Matthew Brown, follow him on Twitter or call 850-682-6524.

This article originally appeared on Crestview News Bulletin: NATIONAL FINANCIAL LITERACY MONTH: Pay with cash, court rewards and other helpful tips

With Easter right around the corner, I hope you can enjoy a taste of chocolate. Because chocolate can be good for you.

Still, many of us can’t help being concerned about how something so sweet might adversely affect our health. Many chocolate lovers, even those at risk of developing type II diabetes or hypertension, now can legitimately indulge in this culinary pleasure.

A study reported in the American Journal of Clinical Nutrition tested dark and white chocolate's effects on healthy adults to determine whether either type affected blood pressure and insulin sensitivity.

They concluded that dark chocolate can help reduce blood pressure and insulin resistance. White chocolate did not provide these health benefits.

Dark chocolate's benefits are due to flavanols, antioxidant compounds, also found in many fruits and vegetables, which lower risk of heart disease.

Flavonols make dark chocolate — in moderation — a great solution to satisfy your sweet tooth!

Although dark chocolate has health benefits, most chocolate bars are high in saturated fat, so moderation is key.

In addition, eating dark chocolate cannot substitute for everyday healthy food choices. Nor can chocolate replace regular exercise or medications prescribed by your physician.

Still, isn't it nice to know you can indulge in your chocolate cravings every so often without feeling guilty about it?

Haley Worley is an agent at the University of Florida's Extension office in Crestview.

This article originally appeared on Crestview News Bulletin: EXTENSION CONNECTION: Indulge in chocolate — for your health!