Woman placing a coin in a piggy bank

Volt Credit Union wants you to get the most out of your finances. We offer several investment options for you, such as a savings account, share certificates, or retirement accounts.

The best way to invest your money for long-term growth is through a balanced portfolio. We discuss how to do that in today’s blog.

Related Post: What Are Youth Accounts and Why Are They Important? 

Why a Balanced Portfolio?

All types of investments bear some risk. That’s why you don’t want to invest all of your money in one type of investment. For example, you put all of your money into the stock market. But the stock market goes down as the beginning part of a prolonged recession. Suddenly, you need money from your investment but it’s not there because stocks are lower than when you invested in them. You might lose all of your money if you invest in a single type of security.

A balanced investment portfolio is meant to mitigate risks and financial calamities as much as possible. Therefore, you should spread out your wealth among several types of investment opportunities to recognize long-term growth for the future.

Before You Invest

You have plenty of options and research available to you thanks to the internet, trusted sources of information, and longstanding companies that offer investments. Finding data on how best to proceed shouldn’t be a problem if you’re serious about investing.

Before you decide to invest, you need to determine three things:

  1. Your financial goals
  2. When you need the money
  3. How much risk or short-term loss you can handle

For example, you want to retire at age 60 and live above your means. You’re currently 30 years old and want a long-term investment. You could probably invest a bit more in the stock market to realize your financial dreams by the time you reach 60 (but everyone’s situation is unique, your actual plan will vary).

Elements of a Balanced Portfolio

Try not to invest more than 20 to 25 percent of your wealth into one particular type of investment. 

You have plenty of choices for your investments.

Volt Credit Union can help you start your investment journey with a savings account that pays dividends monthly.

Related Post: What Is a Share Certificate? Volt Credit Union Explains 

Volt Credit Union Can Help!

Are you ready to start investing in a balanced portfolio? Contact Volt Credit Union today and we’ll be happy to help!

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