Saving and investing during volatile times

Planning for the future means committing to some combination of saving and investing that ultimately depends on your age, income and goals. Although these are fundamentally different forms of saving—

• both are vital to a healthy financial plan;
• both involve setting aside some of your income for the future;
• both come with a level of risk;
• and both are suited to specific types of goals.

If today’s changeable markets cause you to rethink the allocation of your saved funds, we offer some reminders about how saving and investing are meant to work.

Remember your goals

Any commitment to save begins with specific goals that intentionally address the short-term,
mid-term and long-term needs of your life. Every plan for every person is customized.
Every goal has an appropriate form of saving. Every plan is open to change.

Short-term goals

Depending on the amount of money you expect to set aside and when you want to reach your goal(s), Share savings accounts, Target share accounts and money market accounts are ideal for short-term plans, such as holiday gift giving, a vacation, a wedding or emergencies. Savings accounts are low risk, easy to open, access, and maintain, and each account is NCUA insured up to $100,000. We all should keep a savings account cushion throughout our lives. Travis Credit Union offers eight easily accessible Share savings and money market accounts.

Mid-term goals

If you look five to 10 years down the road and see developments such as children going to
private school or college, health care needs or a new home down payment, certificate accounts dedicated to these goals will help. The minimum deposit to open will be higher for certificates than savings accounts, and you’ll need to leave the money in the account for six to 60 months
to avoid penalties, but you’ll earn higher dividends for exercising patience until the maturity date. The longer the term agreement, the more you’ll earn. Certificates are NCUA insured and offer a fixed rate of return if held to maturity.

Long-term goals

Looking towards retirement with travel, special hobbies, or long-term health care needs, you’ll want to consider stocks and bonds. Longer term investments have historically kept pace with inflation, but because they are volatile, you’ll want professional help to learn about these
investments and fit them to your comfort level with the risks involved.

In the past several months, the downturn in some stocks has been dramatic. Although losses in value can be startling, it’s important to note that, historically, stock market cycles come back and go even higher after falling. That’s why it’s important to create a portfolio that includes all these forms of saving to bring stability to your plans; however, past performance does not guarantee future results.

We have the answers you want

So what should you do about saving today for tomorrow? Travis Financial Services (TFS), in partnership with LPL Financial, is available to help you determine how to evaluate your saving plan during fluctuating market conditions. Call the TFS financial consultant who serves the branch nearest you for a free consultation to start or evaluate your saving strategy. Whether you bring us your funds to save or invest, we are committed to helping you reach your financial goals.

Securities and insurance offered through
LPL Financial and its affiliates, Member FINRA/SIPC.
Financial consultants are licensed through LPL Financial.
Investment Products Are