No two versions of the American Dream are alike. While some aspire to tour the country in an RV, others may dream of owning timeshares at their favorite vacation spots. That said, an ideal future for almost all individuals includes one characteristic: financial security.
Alleviating monetary stresses takes more than just a steady income. It often involves beating inflation while protecting assets — reaching a point where a wallet is healthy enough to endure even the hardest of times. While it’s an endeavor that may require different solutions depending on which phase of life an individual is in, some of the best ways for people to ensure their money is ready for the future center on depositing funds properly.
“The key to establishing wealth is making great decisions,” said Kerry Wahlen, president and chief executive officer at Goldenwest Credit Union. “Our team strives to provide members with opportunities to make wise investments, no matter what the economic landscape looks like. Whether you’re about to retire or you’re just beginning your career, there are sound ways to improve financial health.”
Have questions about how you should deposit your money? Here are some answers:
How can people keep my funds safe during a collapse or financial crisis?
Just as important as the ability to earn money is the ability to keep it. Since 1970, members at organizations like Goldenwest Credit Union have had their assets protected by the National Credit Union Share Insurance Fund — which covers every account up to $250,000. That said, ways exist to increase an individual’s insured amount for those who need more protection.
“What we encourage members to do is structure their savings to maximize their insurance coverage,” said Wahlen. “By opening the right accounts, families can increase their NCUA coverage to millions of dollars.”
According to page 32 of their 2019 booklet “Your Insured Funds,” the association could provide $2,500,000 of coverage to a family with a husband, wife and child if they opened the following:
Additionally, accounts for certificates and money markets can receive NCUA coverage. Members at credit unions like Goldenwest automatically have their deposits insured. Individuals curious about how their funds are protected should review their accounts regularly with their financial institution to ensure they’re structured properly.
When and why should someone open a certificate of deposit?
A foundational part of building wealth is establishing a strong savings reserve. As important as it is to set a percentage of income aside, it’s almost equally crucial to ensure that money maintains its value.
Certificates of deposit, also known as “CD’s,” allow individuals to place funds for a specific amount of time into a specialized account for growth. These can be incredibly helpful for anyone planning to make a major purchase within the next few months or years, such as buying a car or performing a home renovation project.
The minimum deposit to open a standard certificate at Goldenwest Credit Union is $500. That said, those who are unable to make an investment that size can opt for a Flex Certificate, which allows individuals to open an account for $50 and add money at any time. Penalty-free withdrawals are also available during the first three days of each quarter with a Flex CD.
Photo: Adobe StockHow does one create a strong rainy day fund?
While a certificate of deposit can keep up with inflation, pulling funds from one during a time of need may not be an option. Thankfully, there are ways for individuals to maintain their savings’ value and keep their funds liquid.
At credit unions like Goldenwest, members can invest in an insured money market account. There is no minimum balance requirement to start a money market and funds can be added at any time — with APY’s increasing with larger deposit amounts.
Another way to build a savings account through Goldenwest is offered through their Golden Rewards program — the gold account.
“We all know that smaller actions can lead up to something great,” Wahlen said. “The Gold Account is designed to provide our loyal customers with an emergency savings account or rainy day fund.”
A free loyalty savings account offering a high-yield of 6.00% APY, the gold account can be funded in four ways:
- Annual year-end bonuses earned on primary and secondary share account balances.
- Deposits of change rounded up to the nearest dollar on all debit card purchases.
- Cash back from Visa Signature and Visa Rebate Credit Cards.
- Cash incentive promotional offers on Goldenwest’s most popular products.
There are no restrictions related to how much a member can withdraw from a gold account, nor how long they can invest. Opening a free gold account is as easy as becoming a member of Goldenwest Credit Union.
Photo: Moon Safari/Adobe StockHow else can one deposit their money?
At Goldenwest Credit Union, several accounts can be opened for different purposes, including for kids, retirement, health savings and more.
“Oftentimes, the most financially healthy people are the ones who establish their values and work toward goals,” said Wahlen. “One of the best decisions anyone can make for their financial future is talking to an expert to see how they can make the most of their opportunities.”
Visit the link for more information about saving with Goldenwest.