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When choosing among the many investment options available today, it is important to determine if you are saving for a short-term or a long-term goal.
For many short-term saving goals or accounts that need flexibility and quick liquidity, it is often most beneficial to choose investments with minimal volatility. This is because these investments do not have the time to weather the ups and downs of the stock market. These accounts might include your emergency fund, near-term cash needs, or an account saving for a major purchase. Usually for these savings goals, an account that bears smaller, but steady, interest is appropriate. This would include money market accounts, simple interest-bearing checking or savings accounts, short duration bond funds, or accounts that give a fixed rate of interest for a fixed amount of time. At FM Financial we offer a unique investment opportunity to earn a fixed rate of return while helping churches grow through our Free Methodist Investment and Loan Fund.
When your investment goal is long-term and the current liquidity need is low, such as saving for retirement, you might consider an account with exposure to the wide array of investments available through the stock and bond markets. When you are saving over many years, you have time to withstand the ups and downs that accompany long-term investments with greater potential for appreciation. In these accounts, you can put your earnings to work compounding over time. Meeting with a financial adviser to discuss your goals, time horizon for investing, and risk tolerance can be helpful when choosing these types of investment accounts. Financial advisers and investment management are available through GuideStream, a Registered Investment Advisor (RIA) established by FM Financial.
Free Methodist Investment and Loan Fund: Variable rate adjusted from time to time. Interest on all certificates accrues daily. A statement is provided each quarter reflecting the principal of each certificate. Investment certificates are unsecured general debt obligations of The Free Methodist Foundation (doing business as FM Financial). Investment is subject to risks, which are described in our Offering Circular, including: no sinking fund, no trust indenture, no FMCUSA guarantee, not FDIC or SIPC insured, not bank deposits or bank obligations, no public market, reinvestment rates may change, loans may be secured by special purpose property, borrowers may be dependent on contributions for loan repayment. This is not an offer to sell you our securities and we are not soliciting you to buy our securities. The offer is made solely by the Offering Circular. We will offer and sell our securities only in states where authorized.
GuideStream: Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by GuideStream Financial, Inc. (“GuideStream”), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from GuideStream. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. GuideStream is neither a law firm, nor a certified public accounting firm, and no portion of the newsletter content should be construed as legal or accounting advice. A copy of GuideStream’s current written disclosure Brochure discussing our advisory services and fees is available upon request or at www.guidestreamfinancial.com. Please Note: If you are a GuideStream client, please remember to contact GuideStream, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. GuideStream shall continue to rely on the accuracy of information that you have provided. Please Note: IF you are a GuideStream client, Please advise us if you have not been receiving account statements (at least quarterly) from the account custodian.
