I recently spoke with some family members in the Northeast who lost power during a big storm that rolled through. It took them four days to get power back. While they were able to get by just fine, it got me thinking about the importance of being prepared for emergencies. I know I’ve talked about such preparation in the past, but I feel like it’s something that should be brought up from time to time as it’s very important. As you plan for the future and set goals, make sure you are also preparing for the unexpected. That means having Continue reading Are You Prepared for an Emergency?
According to a recent study by the Treasury Department and the Joint Commission on Taxation, for every dollar that Americans under the age of 47 save for retirement, they withdraw 20 cents before reaching age 55. That may not sound like much, but that a fifth of a dollar. Furthermore, a 2019 report by the Government Accountability Office found that Americans during their prime working years withdrew almost $70 billion annually from retirement accounts–that is, before they reach retirement age. That’s a lot of money. I get it though, that retirement money can be tempting, especially if times are a Continue reading Don’t Be Someone Who Hits Your Retirement Account Too Early
You may not realize it, but insurance can be an important part of building up your wealth. Think about it for a moment. Insurance helps to protect your assets and your health and allows you to avoid having to spend tons of money should anything happen to your assets or health. For example, sudden health emergency–such as something as common as a broken bone–can be quite expensive and really eat into your savings and can be difficult to recover from. However, if you have health insurance, that amount coming out of your pocket is reduced based on your premium and Continue reading The Insurance of Insurance
Life can be unpredictable. Do you know how you will handle that unpredictability? For example, if you were faced with a sudden, substantial medical bill or your home was damaged in a storm, do you know where the money to pay for those expenses will come from? If you’re financially savvy/smart, you probably have an emergency fund set aside to help with those expenses. However, if you don’t have such money set aside or the costs are more than your emergency fund, you may need to find other financial resources to tap into. While I strongly discourage it and will Continue reading Knowing How Hardship Withdrawals Work
Could you weather a financial emergency given your current savings? Where would the money come from to cover something such as unexpected medical bills or a necessary home improvement expense? In such situations it can be tempting to divert money ear-marked for your retirement savings towards those unexpected bills. Yes, such a move will provide short-term relief and provide you with the needed funds, but in the long-term impact can be quite substantial. First off, don’t forget that the money you don’t put into your retirement account won’t have an opportunity to grow (i.e. through investments) and won’t be there later, Continue reading Don’t Even Think About Stopping Retirement Plan Contributions
Over the past few weeks, those in the Carolinas and the Gulf Coast have been battered by massive hurricanes. The damage wrought by these storms has been extensive and will most likely take years to rebuild from. It’s times like these that remind you of the importance of having a plan in place to handle sudden emergencies, particularly the unpredictability of Mother Nature. This means having a plan in place not only to save yourself and your loved ones, but also to protect your finances and your future. If you live in an area that is prone to tornadoes, hurricanes, Continue reading Don’t Let Mother Nature Ruin Your Retirement
When it comes to saving for retirement, IRAs and 401(k)s get lots of love. They’re the two accounts that get talked about the most and, as a result, tend to be the most common accounts that people use when saving for retirement. While they are a great way to save for the future, they shouldn’t be the only accounts used when saving for retirement. Just like when it comes to investing, you should consider diversifying where you save your money for retirement. Yes, you should use accounts such as IRAs and 401(k)s to do so, but you should also save Continue reading When Saving for Retirement, Look Beyond IRAs and 401(k)s.
Medical expenses are one of the biggest retirement savings killers. All it takes is one unplanned medical emergency or issue and the savings you worked so hard to build up can be decimated or your retirement plans left greatly altered. Thus, along with your finances, you should also be thinking about health insurance in retirement and how you plan to cover yourself once you stop working. This will require exploring Medicare options as well as possible employer options (i.e. if it is part of a retirement package or retirement benefits). As part of that process, you will want to determine Continue reading Make Sure You Have Insurance Covered in Retirement
You can’t predict the future. You can plan and save all you want, but one emergency or unexpected issue can derail your retirement plans pretty quickly. This isn’t meant to scare you, but rather to get you thinking about the unexpected and how to take the steps to help prepare yourself. One of the easiest ways to prepare for sudden emergencies is to have a plan in place. You should have plans set for your physical, mental, and financial health in retirement. Taking the time to discuss and set those plans into writing can help to avoid problems, keep your Continue reading Are You Prepared for the Unexpected in Retirement?
Have the recent weather events in Florida, Puerto Rico, and Texas made you rethink your retirement plans? If you were planning on retiring to a place on the coast, do you worry about the possibility of bigger and more powerful storms causing damage to your dream home or property? While it’s impossible to predict future weather and climates, you can take steps to protect your investments and dreams. For example, if you are building in an area that often gets hit by hurricanes, you may want to incorporate building materials and best-practices that go above and beyond local building codes Continue reading The Climate and Your Retirement