Finances are different for everyone, and so are the life events we all go through. An emergency fund is your financial line of defense against life’s lemons. Although there are many financial rules of thumb, there is no “normal” way to handle your emergency fund. However, there are some answers to common questions to help […]
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Financial planners generally say that one of the most important financial goals should be to have enough emergency savings to cover at least 3-6 months of necessary expenses. As long as you meet the income limits (or can get around them without tax issues), one option to consider for your emergency fund is a Roth IRA. […]
One of the crucial components to your financial foundation is to have an emergency fund (I know, not breaking any news here). Having an emergency fund lets us navigate life’s curveballs (medical bills, car repairs, home repairs, etc.) without having to spiral into credit card or other high interest debt. But there is often a […]
In this age when people are measuring everything from the number of steps they take, to how many hours they sleep, and even how many calories they burn while they are sleeping, it’s no wonder that people regularly ask me if what they are doing is considered “normal” when discussing their personal financial questions with me — […]
After sharing our decision to pursue in vitro fertilization and how we’ll pay for it on the blog last week, I was a bit overwhelmed with the outpouring of support from friends, family, colleagues and even complete strangers. THANK YOU for your words of support and prayers, they mean so much to us! I’ve also […]
The general rule of thumb here is three to six months of your expenses.
Here are some guidelines for using a Roth IRA as part of your emergency safety net:
An emergency fund isn’t exactly the most exciting aspect of financial planning but using these strategies can give your emergency fund an extra kick.
I often talk to people who have several hundred thousand dollars in a 401(k) that they can borrow from but just a few thousand dollars in their savings account. Would it make sense for them to suspend their 401(k) contributions in order to accumulate more savings outside their retirement plan? Not necessarily.
When tax season arrives it’s time to gather those receipts and crunch those numbers! For millions of Americans, it’s also a time of great anticipation as we await the annual windfall that is our tax refund. Before spending all your refund on a new TV or that new car that will saddle you with high […]
The following post is an except from the Financial Finesse Personal Finance FORBES Blog. You can read the original post in its entirety here. https://www.forbes.com/sites/financialfinesse/2020/03/16/are-you-financially-immune-from-the-next-emergency/#dba49981f969
My wife and I were driving home from dinner not long ago and we were stopped at a traffic light. BAM! Someone hit the rear of our car, making our memorable evening out a little too memorable. No one was hurt, but the offending driver was a little slow to produce credible insurance proof, so […]
Ah yes, the annual tradition of gathering receipts and channeling our inner accountant! Tax Season is upon us. For millions of Americans, it also a time of great anticipation as we await the annual windfall that is our tax refund. Considering that in 2016, the average tax refund was a little over $3,000, it is easy […]
I was hanging out with a friend last week when I noticed that she had an unusual amount of magazines and sales ads around her. Knowing that she is one receipt away from being a shopaholic, I asked her what was going on. She told me that in anticipation of her the tax refund she […]
Are you looking for a stable value investment with easy access to your cash when you need it but a higher return than leaving your money in a checking or savings account? A money market fund could be a good fit. Here are some things to consider. What is a Money Market Fund? While a […]
I recently stumbled across this blog post called “The Emergency Roth Fallacy,” which criticizes me (along with a host of other financial writers) for advocating the idea of using a Roth IRA for an emergency fund. The basic idea is that since Roth IRA contributions can be withdrawn tax and penalty-free at any time and […]
The lesson for all of us here is to pray for health and good weather, but keep a solid cash reserve just in case!
A Roth IRA can be an excellent retirement savings vehicle that also provides enough flexibility to be used for emergency savings.
Here are some things to consider before blowing it all on a random shopping spree.
I talk to many parents of students approaching college age who fret about having little or nothing saved for college. They know how important a college education is and want their children to be able to go to the school of their choice while graduating with as little debt as possible but at best, they […]