Financial Tips for Turbulent Times
Whether you're an older worker with seemingly few options to recoup significant investment losses, or a younger worker with minimal or no investment savings at all, don't let a difficult financial climate scare you into not taking any action at all.
Take stock of your situation and formulate a plan by starting with the basics:
Pay down debt. Reduce the chokehold that credit cards have on your budget. Pay off the highest interest-rate card first, and then apply that payment to the next-highest interest-rate card. Stop charging.
Spend less. Identify needs vs. wants, and then set priorities. Many so-called needs actually are wants in disguise.
Rebalance your stock portfolio. Do your investment choices reflect your risk tolerance and investment strategy?
Keep some liquidity. Consider stashing some cash—perhaps three to six months' of living expenses—in a high-yield savings account at Garden Savings FCU. With us, your individual account is insured up to $250,000 by the National Credit Union Share Insurance Fund (NCUSIF) and backed by the full faith and credit of the U. S. Government. In addition, as a well-capitalized credit union, we are pleased to be able to provide an additional layer of protection of $250,000 through the Excess Share Insurance (ESI) program.
Increase your contributions. Right now, many stock prices are at a low. If possible, this is a good time to bump up your contribution.
Diversify. Spread your wealth among a variety of investments: domestic, international, financial services, technology, health care, and so on.
Use dollar-cost averaging. By automatically directing just $50 each paycheck to a credit union savings account, your deposits will earn more interest as the balance increases, increasing your overall savings.
Work longer. If you're close to retirement, consider hanging on to your current job a little longer than planned. If you can’t, secure part-time work after retirement. This will reduce the number of years you dip into your investments and help build additional savings.
Garden Savings FCU is ready to serve you during these tough difficult times. Contact us today to see how we can help you.
Garden Savings Federal Credit Union
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