Avoid the Panic, And Make the Better Decision
The recent financial market has triggered widespread concern over the safety and soundness of financial institutions. These events have prompted many to wonder: "What should I do with my finances?" Los Angeles Police Federal Credit Union (LAPFCU) would like to share some tips to help you through these challenging times.
- Don’t Panic! - The media only focuses on the bad because that’s what captures the interest of viewers; they often fail to mention that there are options for everyone to secure their financial situation.
- Are Your Accounts Insured? - Make sure your accounts are federally insured. At LAPFCU our accounts are insured by the National Credit Union Association (NCUA) up to $250,000 – plus we offer our members free additional insurance coverage from American Share Insurance, which depending on account vesting, can total up to $1 million per family.
- Diversify Your Portfolio - Take the time to check out your financial holdings and ensure you are well-diversified in your investments.
- Spread Your Investments - Since stocks tend to fluctuate, make sure to spread them across multiple investments. This will provide a balance from any stock, bond, or fund that performs poorly while also making a difference when one performs extraordinarily well.
- Budget – Avoid splurging and consider increasing your savings if possible. You may want to minimize unnecessary expenses such as eating out, premium cable and checking accounts with high fees and low rates – it all adds up. (LAPFCU’s Performance Checking actually earns you high dividends.)
- Refinance Your Mortgage – If you are in need of refinancing your mortgage, a credit union like LAPFCU may be a good option in lieu of other financial institutions where credit may be tight. As LAPFCU suffered no losses due to sub prime lending activities, we are conducting mortgage business and offering all other types of loans.
- Short-term Money Needs – For short-term needs, you’re better off getting a Share Certificate where you can choose the term. If you need your funds to be readily available, have some cash on hand or in an accessible account, such as a money market share account or regular share account. LAPFCU offers great rates as well as the safety and security you need.
- Don’t Tap Into Your Retirement Plan - Establish and contribute regularly to a retirement plan like an IRA or 401(k). If you need a short-term funds’ infusion, explore all options including taking a loan against your 401(k) before tapping into your retirement plan as early withdrawal penalties and taxes* can be expensive.
If you are in need of financial assistance, we can help. Call 877-MY-LAPFCU (877-695-2732) and a Member Service Representative can assist you.
Los Angeles Police Federal Credit Union (LAPFCU) provides this article for information purposes only. LAPFCU makes no claims nor guarantees the reliability of this information with regard to making investment decisions.
*Please consult a qualified tax consultant for tax advice.