In the VSECU Blog you'll find financial and lifestyle resources to help empower possibilities for your personal success.
If you’re changing jobs or are retiring, you’re probably wondering what to do about your employer-sponsored retirement plan, whether it’s a 401(k), a 403(b), or a 457 plan. Should you leave it where it is, roll it into a plan sponsored by your new employer, or roll it over to a self-directed IRA? Each person’s situation is different, but here are some basic considerations to keep in mind as you determine what to do with your investments.
So, you’re finally taking that next step in your financial stability. You're meeting with a financial advisor to figure out how you can make the most of the assets you’ve got. Maybe you don’t have much money and you’re looking for a place to start. Or maybe you’ve got plenty to invest but you’re moving to a new advisor. Either way, it’s a good idea to go to the meeting prepared so that you can come away with your questions answered and your feet firmly headed down the road toward financial security.
I’m diversified. I have money in three different mattresses! Diversification is a strategy whereby investors spread out their risk by investing in multiple asset classes. In other words, they don’t invest all of their money JUST in domestic stocks or JUST in municipal bonds. They spread it out over a variety of investment types that have different risk profiles. That way, if their domestic stocks are doing poorly (losing money), their investments in bonds may bring in enough of a return to make up for their stock losses.
Determining your financial risk tolerance can help you find a comfortable path to financial independence. Your tolerance for risk includes your capacity to face risk without fear, but it can also take into account your current situation, your goals, and your time horizon. Risk tolerance is complicated but figuring out how much risk you can take on can help you make wise investment choices that won’t cause you undue stress over the years.
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Thinking about your financial future can be difficult when you're faced with short-term needs such as rent, groceries, and other bills. Difficult, but not impossible. Your financial plan may seem modest to begin with, but even if you don't have a lot of money, there are ways you can continue to invest in your future. Once you've taken care of your immediate needs, every dollar can make a difference when it comes to your long-term finances. Here's how you can save money to invest on a low budget and start setting yourself up for a more certain financial future.
ESG investing is not a new idea but it has become increasingly popular in recent years, and possibly more so lately due to the social and health issues we are facing as a nation. ESG is an investment method that grew out of the philosophy of socially responsible investing (SRI). The letters “ESG” stand for environmental, social, and governance. Those who invest in ESG are interested in supporting companies that prove, through their internal and external operations, that they are committed to taking responsibility for their impact on the world around them.
Estate planning may not be something you think about every day but as you get older and accumulate assets, it should become a part of your overall financial plan. You may have started out with nothing, but now you’ve got a house, maybe a vacation home, rental properties, vehicles, precious heirlooms that were passed down through the family, and investment accounts. The more you accumulate, the more you have to safeguard so that everything makes it into the right hands after you pass. It’s easy enough to procrastinate; more than 50% of American adults don’t have a will. Hopefully, after considering the information outlined in this article, you can begin to move forward with a plan or tune up the documents you already have in place.
When I began to consider writing about economic recession, the pandemic crisis was in its beginning stages and preparing for a recession was a largely theoretical conversation. Fast forward four months, and we are in a recession that surpasses the Great Recession of 2008. Downturns to both the state and national economies have caused a level of financial hardship most of us have never experienced—unless you were alive for the Great Depression from 1929 to 1941. Rather than heighten your concern or cause you despair, however, my goal is to answer some frequently asked questions and provide you with a framework to better understand the current economic recession and what we might expect moving forward.