Most financial planners advise their clients to have money set aside in an emergency fund. Occasionally my clients ask me why they need to keep money on hand for emergencies. If you’re like most Americans, once you’ve paid your credit card bills, mortgage, and your other bills, there’s not much left of your paycheck. If you’re someone who lives far below his or her means (by this, I mean that you have two or three thousand dollars a month or more left unspent from your income every month) you have the capacity to cover many typical unexpected expenses, like the
A profound shift in retirement trends has been underway in America in the last couple of generations. The landscape has shifted from retirements funded largely through pensions and Social Security to retirement years that will be heavily dependent on individual savings, with relatively less help from Social Security. Meanwhile, the leading edge of the Baby Boom has begun retiring. The financial industry, eager to cash in on a perceived demographic windfall, is busy creating new investment products that claim to meet every retirement need. Retirement savers have lots of options, but without a good understanding of personal finance, they’re likely
Most people understand that the FDIC insures certain kinds of bank deposits, like bank CDs. There’s no way to “guarantee” an investment against losses, but an FDIC-insured deposit is probably the closest most of us will ever come to a guaranteed investment. However, consumers are sometimes a bit confused about how much FDIC insurance coverage they can have.
The current FDIC insurance limit is $100,000, so it’s not so common that a household would need to worry about having enough coverage. But sometimes people have unusual liquidity needs, or lots of money, or they’re just very conservative and want to …Read More