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Jason G 🏴‍☠️🇺🇸 avatar
Jason G 🏴‍☠️🇺🇸
@jmag77
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Hey #publiccommunity , here's an article from investor.gov that I recieved in my work email. I'm a Fed employee and they email us all kinds of helpful info but this is the first time I've see something on investing, so I thought I would share. #themoreyouknow #helpfulhints #sharingiscaring everything below this line was copied from the article and pasted here. These are not my words. -------------------------------------------------------------- Don’t Panic, Plan It! By Lori Schock, Director of the SEC’s Office of Investor Education and Advocacy Your first reaction during a time of market volatility may be to panic. Don’t. Instead, plan it! Various events can cause market fluctuations−pandemics, shifts in government policies, crises in foreign countries, changes in economic data, and so much more. You can’t control how these forces may impact the market, but you can take steps to mitigate their impact on your investment portfolio. One of the best ways to manage the impact of market volatility on your portfolio—whether you are an experienced investor or just starting out—is to create and stick with a risk-appropriate, diversified investment plan. If you have already created a personal investment plan, you may want to consider reviewing it to see if any adjustments need to be made to meet your financial goals. But it is important not to make any rash decisions during volatile markets. Find Your Risk Tolerance All investments involve some degree of risk. A key to a successful investment plan is to establish your risk tolerance where you’re comfortable through the inevitable ups and downs of the market. When developing your investment plan and considering risk, think about your investment objectives and experience, time horizon, current financial situation, and aversion to losses. If you will need to withdraw money from your investments sooner (for example, to pay for unexpected expenses or living expenses in retirement), you may want to consider more conservative investments since you may not have a lot of time to wait for a market rebound. Everyone has different risk tolerances and only you can decide what’s best for your financial future. As part of this analysis, you also should understand and consider the impact of fees on your investments. If you need help determining your risk tolerance, check out the SEC’s risk information on Investor.gov or ask a financial professional. Also, when creating your investment plan, it’s important to put money aside in something less risky that will allow you to access your money at any time in case you need it for life’s unexpected challenges, such as sudden unemployment. For example, putting money into an FDIC (Federal Deposit Insurance Corporation) insured bank account provides a guaranteed and liquid option. Many financial professionals recommend having up to six months of money in savings to help carry you through difficult economic times. Diversify, Diversify, Diversify I can’t stress enough the benefits of diversification in your investment portfolio. In other words, “Don’t put all of your eggs in one basket.” Spreading your investments across a mix of stocks, bonds and cash can be a sound strategy. Including different kinds of investment products in your portfolio reduces risk and the impact of volatility on your overall portfolio. Diversification is also important within an asset class. For example, if you plan to invest a specific amount of money in stocks, don’t put it all in one or two stocks. Instead, consider spreading it out across different types of industry sectors. Don’t Try to Time the Market Some initial reactions during a downturn may be to sell and get out of the market. But most investment plans are created for the long-term, allowing investors to not become distracted by short-term market flucutations. If you’re able to, continue to invest according to your investment plan, even when the market swings up and down. Consider utilizing a “dollar-cost averaging” investment strategy. When markets and fund prices are up, you are acquiring fewer shares. When markets drop, your regular contribution actually acquires more shares of the fund, setting you up for gains when the market recovers. A mistake you can make is to sell your investments when you see them go down, when it can often be the best time to buy. I realize that not everyone may be in a position to do this, but it is something to take advantage of, if you can. Remember, ultimately it’s time in the market, not timing of the market, that generally leads to long-term investing success. Again, when creating your investment plan, do so with an understanding based on your goals and risk tolerance, such that you can continue to follow it during times of market volatility. Investing for Your Future Even during a time of market volatility it’s important to continue to contribute to your retirement plan, such as the Thrift Savings Plan (TSP), a 401(k) plan, or an Individual Retirement Account (IRA). If you’re able to, max out any employer match and take advantage of the “free money.” No other investment will give you that kind of guaranteed return. Contributions to some of these plans also are tax advantaged. If money is tight, consider reviewing your current budget to see if you need to make adjustments or realign your priorities. Decide if it makes sense for you to lower the amount of money you spend in one category, in order to continue to allocate funds for your retirement. Saving for retirement and investing for your future is always a good idea, no matter the market conditions. However, only you know what you can afford and works best for you to meet your long-term financial goals. Retiring Soon? Sometimes market downturns come at the most inconvenient times. As you get closer to retirement, consider if you need to make changes to your investment plan to accommodate your financial needs. For example, you may want to shift from more aggressive investments to more conservative investments. Making these kinds of adjustments ahead of retirement may help protect your portfolio against damaging market volatility. Stay Calm. Stick to Your Plan. If you have the right investment plan, you shouldn’t need to make rash decisions during times of market volatility. A plan that takes into account your long-term financial goals and risk tolerance and includes a portfolio of diverse assets, will better prepare you for inevitable market changes. Most importantly, whatever you do, don’t panic, plan it! ------------------------------------- The Securities and Exchange Commission disclaims responsibility for any private publication or statement of any SEC employee or Commissioner. This article expresses the author’s views and does not necessarily reflect those of the Commission, the Commissioners, or other members of the staff.
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Stocks, ETFs, Options, Bonds.
Self-directed brokerage accounts and brokerage services for US-listed, registered securities, options, and Bonds, except for treasury securities offered through Jiko Securities, Inc., are offered to self-directed customers by Open to the Public Investing, Inc. (“Public Investing”), a registered broker-dealer and member of FINRA & SIPC. Additional information about your broker can be found by clicking here. Public Investing is a wholly-owned subsidiary of Public Holdings, Inc. (“Public Holdings”). This is not an offer, solicitation of an offer, or advice to buy or sell securities or open a brokerage account in any jurisdiction where Public Investing is not registered. Securities products offered by Public Investing are not FDIC insured. Apex Clearing Corporation, our clearing firm, has additional insurance coverage in excess of the regular SIPC limits. Additional information can be found here.

Options.
Certain requirements must be met in order to trade options. Options can be risky and are not suitable for all investors. Options transactions are often complex, and investors can rapidly lose the entire amount of their investment or more in a short period of time. Investors should consider their investment objectives and risks carefully before investing in options. Refer to the Characteristics and Risks of Standardized Options before considering any options transaction. Supporting documentation for any claims, if applicable, will be furnished upon request. Tax considerations with options transactions are unique and investors considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy.

Options Order Flow Rebates.
If you are enrolled in our Options Order Flow Rebate Program, Public Investing will share a percentage of our estimated order flow revenue for each completed options trade as a rebate to help reduce your trading costs. Rebate rates vary monthly from $0.06-$0.18 and depend on your current and prior month’s options trading volume. This rebate will be deducted from your cost to place the trade and will be reflected on your trade confirmation. To learn more, see our Options Rebate Program Terms & Conditions, Order Rebate FAQ and Fee Schedule.

Bonds.
“Bonds” shall refer to corporate debt securities and U.S. government securities offered on the Public platform through a self-directed brokerage account held at Public Investing and custodied at Apex Clearing. For purposes of this section, Bonds exclude treasury securities held in treasury accounts with Jiko Securities, Inc. as explained under the “ Treasury Accounts” section.

Investments in Bonds are subject to various risks including risks related to interest rates, credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. The value of Bonds fluctuate and any investments sold prior to maturity may result in gain or loss of principal. In general, when interest rates go up, Bond prices typically drop, and vice versa. Bonds with higher yields or offered by issuers with lower credit ratings generally carry a higher degree of risk. All fixed income securities are subject to price change and availability, and yield is subject to change. Bond ratings, if provided, are third party opinions on the overall bond's credit worthiness at the time the rating is assigned. Ratings are not recommendations to purchase, hold, or sell securities, and they do not address the market value of securities or their suitability for investment purposes.

A Bond Account is a self-directed brokerage account with Public Investing. Deposits into this account are used to purchase 10 investment-grade and high-yield bonds. The Bond Account’s yield is the average, annualized yield to worst (YTW) across all ten bonds in the Bond Account, before fees. A bond’s yield is a function of its market price, which can fluctuate; therefore a bond’s YTW is not “locked in” until the bond is purchased, and your yield at time of purchase may be different from the yield shown here. The “locked in” YTW is not guaranteed; you may receive less than the YTW of the bonds in the Bond Account if you sell any of the bonds before maturity or if the issuer defaults on the bond. Public Investing charges a markup on each bond trade. See our Fee Schedule.

Bond Accounts are not recommendations of individual bonds or default allocations. The bonds in the Bond Account have not been selected based on your needs or risk profile. You should evaluate each bond before investing in a Bond Account. The bonds in your Bond Account will not be rebalanced and allocations will not be updated, except for Corporate Actions.

Fractional Bonds also carry additional risks including that they are only available on Public and cannot be transferred to other brokerages. Read more about the risks associated with fixed income and fractional bonds. See Bond Account Disclosures to learn more.

High-Yield Cash Account.
A High-Yield Cash Account is a secondary brokerage account with Public Investing. Funds in your High-Yield Cash Account are automatically deposited into partner banks (“Partner Banks”), where that cash earns interest and is eligible for FDIC insurance. See here for a list of current Partner Banks. Your Annual Percentage Yield is variable and may change at the discretion of the Partner Banks or Public Investing. Apex Clearing and Public Investing receive administrative fees for operating this program, which reduce the amount of interest paid on swept cash. Neither Public Investing nor any of its affiliates is a bank. Learn more.

Cryptocurrency.
Cryptocurrency trading, execution, and custody services are provided by Bakkt Crypto Solutions, LLC (NMLS ID 1828849) (“Bakkt”). Cryptocurrency is highly speculative, involves a high degree of risk, and has the potential for loss of the entire amount of an investment. Cryptocurrencies offered by Bakkt are not securities and are not FDIC insured or protected by SIPC. Your cryptocurrency assets are held in your Bakkt account. Bakkt is a licensed virtual currency business by the New York State Department of Financial Services and a licensed money transmitter, but is not a registered broker-dealer or a FINRA member. Your Bakkt Crypto account is separate from your brokerage account with Public Investing, which holds US-listed stocks and ETFs. Please review the Risk Disclosures before trading.

Treasury Accounts.
Investing services in treasury accounts offering 6 month US Treasury Bills on the Public platform are through Jiko Securities, Inc. (“JSI”), a registered broker-dealer and member of FINRA & SIPC. See JSI’s FINRA BrokerCheck and Form CRS for further information. JSI uses funds from your Treasury Account to purchase T-bills in increments of $100 “par value” (the T-bill’s value at maturity). T-bills are purchased at a discount to the par value and the T-bill’s yield represents the difference in price between the “par value” and the “discount price.” Aggregate funds in your Treasury Account in excess of the T-bill purchases will remain in your Treasury Account as cash. The value of T-bills fluctuate and investors may receive more or less than their original investments if sold prior to maturity. T-bills are subject to price change and availability - yield is subject to change. Past performance is not indicative of future performance. Investments in T-bills involve a variety of risks, including credit risk, interest rate risk, and liquidity risk. As a general rule, the price of a T-bills moves inversely to changes in interest rates. Although T-bills are considered safer than many other financial instruments, you could lose all or a part of your investment. See Jiko U.S. Treasuries Risk Disclosures for further details.

Investments in T-bills: Not FDIC Insured; No Bank Guarantee; May Lose Value.

Banking services and bank accounts are offered by Jiko Bank, a division of Mid-Central National Bank. JSI and Jiko Bank are not affiliated with Public Holdings, Inc. (“Public”) or any of its subsidiaries. None of these entities provide legal, tax, or accounting advice. You should consult your legal, tax, or financial advisors before making any financial decisions. This material is not intended as a recommendation, offer, or solicitation to purchase or sell securities, open a brokerage account, or engage in any investment strategy.

Commission-free trading refers to $0 commissions charged on trades of US listed registered securities placed during the US Markets Regular Trading Hours in self-directed brokerage accounts offered by Public Investing. Keep in mind that other fees such as regulatory fees, Premium subscription fees, commissions on trades during extended trading hours, wire transfer fees, and paper statement fees may apply to your brokerage account. Please see Public’s Investing’s Fee Schedule to learn more.

Fractional shares are illiquid outside of Public and not transferable. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see our Fractional Share Disclosure to learn more.

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