Invest: You Have Got to Have a Plan!
Whatever stage you are in life, we are here for you. Dover FCU Investment & Retirement Center has the expertise and credentials to put you at ease when it comes to planning your future.
Article: What Should You Do With that Refund?, provided by Steven Pierce
Helping You Reach Your Financial Goals
Planning for your future is one of the most important things you can do today. And the most important component of any strategy is having the right team on the job. That is why you Credit Union makes available a full range of products and services to suit your needs. Dover FCU Investment & Retirement Center is staffed by experienced professionals who are skilled in analyzing your situation, and building financial road maps to help you reach your goals.
Manage Your Investments
Managing investments can be over whelming and that is why we have applied credit union ideals to professional investment management. The result is investment professionals whose sole purpose is to work closely with you, understand your financial goals and dreams, and deliver a plan specific to your needs.
Develop Your Retirement Income Strategy
Most people concentrate on when they want to retire. But equally important to consider is how you will be able to retire without worrying about managing rising health care costs or outliving your retirement assets. Retirement is the time to enjoy life, not be overwhelmed with financial concerns. With the help of our experienced Dover FCU Investment & Retirement Center Representatives, you can develop a retirement income strategy. A strategy that gives you confidence and peace of mind during your retirement years.
Steve Pierce, financial advisor, is available to members for a no cost, no obligation financial planning consultation. Whether you are approaching retirement, facing a career change, or just starting in your career, Steve Pierce can assist you in creating or evaluating your financial plan. To contact Steve Pierce, call him at 302-678-8356, click here, or stop by the Dover FCU Investment & Retirement Center at our Saulsbury Road Branch.
Representatives are registered, securities are sold, and investment advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor, 2000 Heritage Way, Waverly, Iowa 50677, toll-free (800) 369-2862. Nondeposit investment and insurance products are not federally insured, involve investment risk, may lose value and are not obligations of or guaranteed by the financial institution. CBSI is under contract with the financial institution, through the financial services program, to make securities available to members. CUNA Brokerage Services, Inc., is a registered broker/dealer in all fifty states of the United States of America. The Representative may also be a credit union employee that accepts deposits on behalf of the financial institution.
Putting Together a Financial Portfolio
Enjoying a secure retirement, paying for college, and attaining other financial goals do not happen by accident. You need to have an investment plan/portfolio with specific goals, choose appropriate investments, and check your progress along the way. Important considerations when building a financial portfolio include:
- Timeline - Are you working towards a short-term goal or long-term goal?
- Cash Flow - How much can you afford to invest every month? Consider having automatic deductions taken out of your paycheck to go into a retirement fund or other investments.
- Risk Tolerance - This includes your personal preferences as well as the timeline factor. When you plan far enough ahead, you can invest in more volatile options and then move towards safety as you approach your goal.
- Diversification - It is important to diversify investments to lower your overall risk.
- Insurance - Documentation on all life, disability, and credit insurance policies should be included.
- Retirement Plans - Compile statements and details on 401k plans, IRAs, and Social Security statements.
- Investments - Include prospectuses, account statements, information on websites, and who to call for questions.
Investing Wisely: Smart Strategies for Beginners
Slow and Steady Wins the Race
One of the most important concepts of investing is that time is your friend. The more time you have for your investments to grow, the more you will benefit from the compounding of interest. Even if you can only afford to set aside $10 out of every paycheck, it is important to start investing early.
Risk vs. Return
Another common sense principle to keep in mind is that your return on an investment will always be in direct proportion to the risk involved. If you are earning 1% on a savings account, that is because there is almost zero risk involved. On the other hand, if you are offered something that pays a high rate of return, make sure you understand all of the risks involved and that you read the fine print.
Short-Term or Long-Term?
How long do you have before you will need access to your money? If you are nearing retirement, you will want to move your funds into safer, more liquid investments such as Share Certificate or a Money Market account. If you have several years (or decades!) to go, consider options that have historically performed well over the long-term: stocks, bonds, and mutual funds.
Helpful Investment Tips for Navigating a Challenging Economy
Focus on Objectives
Are you saving for retirement? College expenses? Major purchases? Set investment goals and timelines, and choose investments that meet your criteria, then stick with your plan. For example, if you have 30 years until retirement, you can afford to take more risk by investing in the stock market. If you need money for college in 5 years, you will want to choose conservative, liquid investments.
Avoid Knee-Jerk Reactions to Market News
It is tempting when you hear bad economic news or a hot stock tip to buy or sell on impulse. Timing the market is best left to professionals. If you are an average investor, you will do better using dollar cost averaging. This simply means you invest a set amount each month in a particular investment or portfolio. That way, when prices are low, you will buy more of an investment; and when it is higher, you will buy less. Dollar cost averaging will help you avoid the risk of making a large investment and having the price drop right after your purchase.
Adjust Your Risk Profile as Needed
Consult your tax advisor to ensure that you are taking full advantage of tax-favored investment options, as well as any deductions you are entitled to for investment losses.
Dover FCU Investment & Retirement Center Seminars
Attend one of the no cost or obligation financial seminars and discover thoughtful and insightful information to help you make informed financial decisions about investing and planning for retirement, education funding, or other life changes.