Crosswalk.com aims to offer the most compelling biblically-based content to Christians on their walk with Jesus. Crosswalk.com is your online destination for all areas of Christian Living – faith, family, fun, and community. Each category is further divided into areas important to you and your Christian faith including Bible study, daily devotions, marriage, parenting, movie reviews, music, news, and more.

Finance Tip of the Day

Before You Cash Out: Alternative to Draining Your 401(k)

  • 2016 18 May
  • COMMENTS
Before You Cash Out: Alternative to Draining Your 401(k)

mvelopes

Before You Cash Out: Alternative to Draining Your 401(k)

An Ounce of Prevention: Establish an Emergency Savings Account

Part of the problem is that the current financial planning system tends to divert funds employees need for short-term spending into long-term retirement savings, leaving nothing left for immediate emergencies, suggests Matt Fellowes, chief executive officer of financial guidance service HelloWallet. Fellowes suggests that in the current economy, many workers would be better advised to build an emergency savings account that avoids the risks associated with 401(k) plans before investing in retirement savings. Only after establishing an emergency fund should employees focus on retirement planning, he says. Opinions vary on exactly how big an emergency fund should be, and specifics will vary with your situation, but a widely-accepted rule of thumb recommends your savings should be at least enough to cover three to six months of living expenses, with retirees advised to have a year’s worth of funds available.

Today's tip brought to you by Mvelopes and Money4Life Coaching.


Follow Crosswalk.com