One of the most popular questions people ask is whether they should save their money or invest it. The simple answer: both. While investing your money traditionally earns more than a savings account, there are risks and downsides.
Before you jump straight into risk-based investments, it’s essential to understand the pros and cons of both options
There are several savings options available to members at the credit union. These include savings accounts, money market accounts, and certificate accounts. While each option is slightly different, they all share vital advantages.
While savings offer safe and consistent returns, there are downsides when compared to other investment opportunities.
When it comes to investing your money, the largest draw to members is the potential to earn higher returns. However, it’s important to remember that investing, especially for retirement, is a long-term strategy and must be treated as such.
The greatest drawback of investing is risk. Whether you’re investing in the stock market, real estate, or newer options, such as cryptocurrency, your risk exposure is much higher when compared to saving your money.
Everyone wants to grow their money. However, there are many stages in life that require different types of growth and access. Start by building your emergency fund. Once you have three to six months of living expenses saved in your credit union account, switch your focus to investments.
For example, if you have $400 left to save each month, split these funds between investments and your emergency fund. Place $100 in investments and $300 into your emergency fund. Once your emergency fund reaches your desired amount, you can then decide to invest the entire $400 each month or continue to grow both accounts.
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When it comes to growing your money, there are many options available. As your credit union, our purpose is to help you make the best financial decisions for your unique situation. Whether you’re interested in opening a savings account or speaking to a financial advisor, our team is ready to help.
For information about concierge banking services, deposit options, and other financial guidance, contact our Private Banking team. To speak with one of our financial advisors about investing, retirement planning, and more, contact Freedom First Wealth Management.
Securities offered through LPL Financial (LPL), a registered broker-dealer (member FINRA/SIPC). Insurance products offered through LPL or its licensed affiliates. Investment advice offered through Good Life Financial Advisors, LLC, a registered investment advisor and separate entity from LPL Financial. Freedom First Federal Credit Union and Freedom First Wealth Management are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using Freedom First Wealth Management, and may also be employees of Freedom First Federal Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from , and not affiliates of, Freedom First Federal Credit Union or Freedom First Wealth Management. Securities and insurance offered through LPL or its affiliates are:
Not Insured by NCUA or any Other Government Agency | Not Credit Union Guaranteed | Not Credit Union Deposits or Obligations | May Lose Value |