financial savings

For individuals, now may be a good time to reassess your investing goals in terms of considering your investment horizon, risk tolerance, and objectives. If you are saving for a retirement that’s multiple years or decades away, your objective is for a long-time horizon. And over time, consistently contributing to your retirement account has historically been shown to be a prudent way to build a sufficient nest egg. For those choosing an asset allocation fund to invest in, such as a target-date or target-risk fund, those types of investment vehicles are created with a range of investment horizons and objectives already factored in. 

For those closer to retirement who are not in an asset allocation fund or who are particularly risk adverse, most retirement plans include investment options that are designed to seek capital preservation, such as certificate of deposit (CDs), money market mutual funds, and stable value funds. The goal of these types of investments is primarily to provide capital preservation and, secondarily, to provide a steady source of return, while softening the impact of short-term market volatility. 

For more information about the markets and COVID-19, visit the ICMA-RC Coronavirus (COVID-19) and CARES Act Resource Center.

For more on this topic, ICMA and ICMA-RC, ICMA's exclusive retirement services partner, have joined forces to offer a free financial planning series beginning April 13. We know many local government leaders and their staffs are concerned about navigating through these challenging times. This webinar can help address some of your questions, as well as help you take a closer look at your current strategies in light of the current environment. 


Past performance is no guarantee of future results. Please note that this content was created as of the date indicated and reflects the authors’ opinions. These opinions are subject to change, without notice, due to market conditions or other factors. This information is not intended as a solicitation nor does it constitute investment, tax, or legal advice. Reference to any fund or asset class is not a recommendation to buy, sell, or hold that fund or asset class. Neither ICMA-RC nor its subsidiaries are responsible for any investment action taken as a result of the information provided herein or the interpretation of such information. Investors should carefully consider their own investment goals, risk tolerance, and liquidity needs before making an investment decision. Investing involves risk, including possible loss of the amount invested.



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