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FINANCIAL MOVES TO CONSIDER FOR YOUR FUTURE - RETIREMENT ACCOUNTS, EMERGENCY FUNDS & INSURANCE

Updated: 4 days ago







By Louis Green, CFA®, CFP®, CRPS®


Financial Moves To Consider For Your Future


Retirement Accounts

Funding a self-managed retirement plan or contributing to an employer-sponsored plan is one possible way to build long-term wealth. There are many options that are available for you. If you are eligible1, you can fund a Traditional IRA or Roth IRA. Consider a 401(k) or 403(b) plan if either is available from your employer. If you are a business owner, consider a Solo 401(k) or SEP IRA. The requirements, funding levels, and benefits vary for each of these plans,2,3 however they are all great ways to build a retirement plan and receive tax benefits. The tax benefits may include deductible contributions (Traditional IRA and/or 401(k) if eligible), tax free growth, and/or tax-free withdrawals (Roth IRA and/or Roth 401(k)).1,2,3


Funding a retirement plan and making annual contributions should be your priority. The sooner you start to fund one of these plans, the better off you may be in the long run. If your children are just entering the workforce, do them a favor and stress the importance of contributing to their retirement plan. Regular contributions to their retirement plan could be beneficial for them.


Emergency Funds and Liquidity

Retirement can bring unexpected expenses, and having a buffer can provide peace of mind. A good rule of thumb is to have 3-6 months’ worth of expenses saved in an easily accessible account. Your emergency funds can cover anything from medical emergencies to home repairs. Your emergency fund should consist of liquid investments that can be sold quickly without significant fees or exposure to stock market declines.


Insurance 

Insurance should play an important role in your financial plan. Life insurance, disability insurance, health insurance and property insurance should be core essentials of your plan. Consider umbrella insurance if you have a high risk of getting sued. If you are employed, you may be able to obtain disability and term insurance through your employer. Review all of your insurance policies annually to determine if you have adequate coverage.


Let’s Talk

Find out how Prestiq Wealth can help you create a comprehensive financial plan based on their book, 5 Steps To Retirement Planning.






All advisory services are offered through Savvy Advisors, Inc. (“Savvy Advisors”), an investment advisor registered with the Securities and Exchange Commission (“SEC”).





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