Some of the elements of a successful and sustainable financial plan we’ll discuss during our initial consultation include:
The general rule is, the longer you have until retirement, the more risk you may be able assume. As you get older you may want to be less aggressive with your retirement funds by allocating more of your portfolio conservatively, so you don’t jeopardize your retirement security by making yourself vulnerable to losses.
- Can reduce your risk of investing too much in a single group of assets.
- Is not a one-time practice. Based on your plan’s performance, the performance of the market and age until retirement, you should continue to evaluate and rebalance your portfolio with the assistance of a trusted financial guide.
- Is individualized. Appropriate asset allocation depends on a person’s individual situation, including tolerance for risk, goals, sources of retirement income, retirement age and retirement nest egg size.
Dollar Cost Averaging
- On a set schedule, investing a fixed dollar amount in the same investment can help lower your average price in that investment.
- More shares of an asset are bought when prices decline and less when prices rise.
- By instilling the discipline to invest on a set or automated basis, you can more effectively stay on track to meet your long-term goals.
- A set amount automatically deducted from your DFCU account is an easy way to help reach your goals over time.
A systemic investment plan does not assure a profit and does not protect against loss in declining markets. Such a plan involves continuous investment, so investors should consider financial ability to continue purchases through periods of low prices levels.
A strong financial plan includes ongoing evaluation of the tax implications resulting from your financial decisions and can reduce, defer or eliminate taxes. In creating a tax-efficient investment strategy, we recommend the following steps:
- Ask how tax-deferred investments can help you achieve long-term growth goals.
- If an active trader, find out how you can use a tax-deferred account to minimize taxable events.
- Ask about investment products that are exempt from federal and state income taxes.
- Ask for a review of each investment option and the tax implications of each.
- Take the issue of capital gains (offset with capital losses) into account when it comes to buying and selling investments.
Contact us to discuss asset allocation and your personalized investment strategy with our Financial Consultants, licensed through our broker-dealer CUSO Financial Services, L.P. (CFS), today. Schedule a complimentary consultation by calling a financial consultant or visiting a DFCU Financial branch near you!
Tax laws are complex and subject to change. This information is based upon current federal tax rules in effect at the time it was written. CUSO Financial Services, L.P. (CFS) and its Registered Representatives do not provide tax or legal advice, and do not, by providing you this information, hold themselves out to be "fiduciaries" of your tax-deferred plans. Clients should always check with their tax or legal advisor before engaging in any transaction involving IRAs or other tax-advantaged investments.
Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (member FINRA
) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. DFCU Financial has contracted with CFS to make non-deposit investment products and services available to credit union members. DFCU Financial Partners is a division of DFCU Financial.