Friends Club 3rd Quarter 2025

Utilize the Bucket Strategy The bucket strategy divides your retirement savings into three time-based “buckets” – each designed to serve a different purpose based on when you’ll need the money and your risk tolerance. Bucket 1: Short-Term (0–2 years)

Bucket 2: Mid-Term (3–5 years) This middle bucket is meant to be more stable than stocks but offer a little more growth than cash. It serves as a bridge between your short-term needs and long-term goals. Use this bucket for near-future spending that doesn’t need to be accessed immediately.

Bucket 3: Long-Term (5+ years) This is where you keep the investments with the most potential to grow—but also the most potential to swing during downturns. Try not to touch this bucket during volatile periods; let it recover and grow over the years, replenishing the other buckets as needed when the market is stronger.

This bucket gives you easy access to funds when you need them, without having to sell investments during a market dip. Having funds for essential expenses in this bucket helps you ride out short-term volatility. Use this bucket for daily expenses and immediate income needs.

During a market dip, you can pull from your short- or mid-term buckets to avoid selling long-term investments at a loss. This preserves your growth assets for future years when the market is more likely to recover. You’ve Planned for This – Now Protect It Market downturns are unsettling, especially when you’re no longer earning a paycheck and relying on savings to support your lifestyle. But your retirement plan was built with ups and downs in mind. With the right strategies in place, you can navigate even the rockiest markets with confidence. If you have further questions about these strategies, we invite you to schedule a meeting with one of our experienced Trust and Wealth Management Officers by calling 1-800-899-8858 . We look forward to serving you as your trusted advisor. Financial Wellness Virtual Class Financial Planning: Why and How September 11, 2025 | 12:00 - 12:30 P.M. Have you ever wondered: • Will I have enough money to retire? • At what age can I retire? REGISTER

3rd Quarter 2025 • How much do I need to save and invest to meet my goals? Financial planning is a beneficial process to help answer these questions. Please join Todd Joslin, Certified Financial Planner® and Wealth Management Officer at Hills Bank to learn the benefits of a tailored financial plan and the tools & resources available to you.

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Investment products are not a deposit, not FDIC insured, not insured by any federal government agency, carry no bank guarantee, and may go down in value.

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