Build wealth as interest rates and prices remain high with nine strategies from OnPoint Community Credit Union's Investment Services team (Photo) (2024)

Build wealth as interest rates and prices remain high with nine strategies from OnPoint Community Credit Union's Investment Services team (Photo) - 07/30/24

OnPoint Investment Services offers a path forward on growing wealth in an uncertain economy

PORTLAND, Ore.,July 30, 2024 —More than half of Americans say the current economy is making it impossible to achieve long-term financial goals, a recentNational Foundation for Credit Counseling study revealed. And 39% are concerned that the money they have saved or will save won’t last. OnPoint Community Credit Union’s Investment Services team is sharing nine ways people in Oregon and Southwest Washington can build wealth as they navigate stubbornly high interest rates and prices.

“Today’s cost of living remains high, but there are still opportunities to build long-term wealth,” saidDavid Yates,OnPoint Investment Services Financial Advisor with Raymond James Financial Services. “You can take control of your financial future with a clear financial strategy that minimizes unnecessary expenses, maximizes income and takes a long-term approach.”

Yates recommends these nine strategies to help people achieve short and long-term financial goals:

1. Meet with a trusted financial advisor.Walk through your current financial picture with a financial advisor who is held to a fiduciary standard. They can help you understand your overall financial picture, make adjustments, assess your risk tolerance and create a clear strategy that works best for your unique financial situation.
2. Maximize the funds you already have.Consider using high-yield savings accounts and Certificates of Deposit (CDs). When you deposit funds into a savings account, the bank pays you interest on that balance at a specified rate. Today’s high interest rates may increase your savings account balance, so your money grows over time.Investing in bonds, especially municipal bonds, may also be an option. Municipal bonds offer tax advantages and the opportunity for a stable income stream. While they may not be suitable for all investors, municipal bonds can be a good strategy for balancing risk and return in your investment portfolio.
3. Minimize unnecessary expenses.Review your bank statements and identify expenses to cut to create a little extra room in your budget. Consumers spendan average of $219 a month on subscription services. Stay on top of your subscriptions andkeep track of auto-renewal dates, so you cancel the ones you no longer need. Althoughgas prices lowered in June 2024, consider carpooling with coworkers and friends to save on transportation. Meal plan tosave on groceries, takeout orders and restaurant tabs. Consumers spend$3,639 annually on food away from home, which comes out to about $300 per week, according to the Bureau of Labor Statistics.
4. Build and maintain cash reserves. Create an emergency savings fund and ensure it is accessible so you can cover immediate expenses and emergencies. This practice ensures you don't have to sell investments during market downturns, helping you stay on track with your financial goals.
5. However, make sure to diversify investments. Cash is not always king. Balance having cash on hand with other investments that offer the potential for higher long-term returns. Spread your investments across different asset classes, such as stocks. Diversification helps mitigate risk and can lead to more stable returns over time. Having an emergency fund also provides additional confidence and financial stability in uncertain times.
6. Plan for retirement with a long-term perspective. Ensure your retirement plan includes a mix of investments to support you throughout your retirement years. Keep in mind factors such as health expenses, relocation plans and spending habits to determine the right mix of investments. Consider putting a significant portion of your portfolio in stocks to outpace inflation and meet long-term financial needs. Carrying some level of risk is essential for growth and sustainability in your retirement funds.
7. Organize your investments into three buckets: short-term, medium-term and long-term. The short-term bucket should contain funds for immediate needs, like cash and money markets for the next 6-12 months. The medium-term bucket, for use in the next 2-4 years, can take on moderate risk. The long-term bucket can be for high-risk investments that you won't touch for five years or more. This strategy helps balance risk and ensures you have funds available when needed.
8. Reinvest dividends. Enhance your portfolio's growth by reinvesting dividends. Since dividends are taxed at a lower rate than ordinary income, reinvesting them can be a tax-efficient way to increase your investment over time.
9. Be cautious and intentional. Avoid making impulsive investment decisions based on short-term market news. Focus on long-term goals and strategies to maximize your investment potential. Reacting to market fluctuations can lead to missed opportunities and unnecessary risks.

For those looking to begin investing or need guidance on your current plan, visit https://www.onpointcu.com/financial-planning/ to learn about OnPoint’s financial planning resources and request a complimentary consultation.

ABOUT ONPOINT COMMUNITY CREDIT UNION

OnPoint Community Credit Union is the largest credit union in Oregon, serving over 563,000 members and with assets of $9.2 billion. Founded in 1932, OnPoint Community Credit Union’s membership is available to anyone who lives or works in one of 28 Oregon counties (Benton, Clackamas, Clatsop, Columbia, Coos, Crook, Curry, Deschutes, Douglas, Gilliam, Hood River, Jackson, Jefferson, Josephine, Klamath, Lane, Lincoln, Linn, Marion, Morrow, Multnomah, Polk, Sherman, Tillamook, Wasco, Washington, Wheeler and Yamhill) and two Washington counties (Skamania and Clark) and their immediate family members. OnPoint Community Credit Union is federally insured by the National Credit Union Administration (NCUA). More information is available atwww.onpointcu.com or 503-228-7077 or 800-527-3932.

Securities and investment advisory services are:

• Not a bank or credit union deposit, obligation or guarantee.
• May lose value.
• Not FDIC or NCUA/NCUSIF insured.
• Not insured by any federal government agency.

Securities offered through Raymond James Financial Services, Inc., Member FINRA / SIPC. Investment advisory services offered through Raymond James Financial Services Advisors, Inc. OnPoint Community Credit Union and OnPoint Investment Services are not registered broker/dealers or registered investment advisers, and are independent of Raymond James Financial Services, Inc. and Raymond James Financial Services Advisors, Inc.

Raymond James financial advisors may only conduct business with residents of the states and/or jurisdictions for which they are properly registered. Therefore, a response to a request for information may be delayed. Please note that not all of the investments and services mentioned are available in every state. Investors outside of the United States are subject to securities and tax regulations within their applicable jurisdictions that are not addressed on this site. Contact your local Raymond James office for information and availability.

Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members.

Any opinions are those of OnPoint and not necessarily those of Raymond James.Expressions of opinion are as of this date and are subject to change without notice. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct.Investing involves risk and you may incur a profit or loss regardless of strategy selected.

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