If you search for a “buy stocks” or “open a Roth IRA” on the internet, you’ll find that there are a couple less than a million brokerages out there. Literally, there are a TON! Rather than having you start fresh in your search, we’ll try to give you some direction.
As you follow along with us in the future, you will quickly realize how much we stress the importance of retirement savings. This is for various reasons including the present-day tax savings, achieving the “set it and forget it” mindset, diversity, etc. If you are new to this, the vast array of choices can be kind of intimidating. I’m going to summarize the most common types of retirement accounts below, hopefully opening your eyes to a world of possibilities!
The EF (Emergency Fund) is one of the foundations of personal finance. The EF allows you to sleep soundly at night knowing your lifestyle and loved ones are protected. Whether it be from job loss, or an unexpected illness, having the ability to pay 4-6 month of expenses with savings is a game changer. Because of this, you want the EF to be invested in something fairly liquid – meaning, you can withdraw the funds quickly in order to pay for the emergency expense. You also want to ensure the EF isn’t invested in too risky of funds, or the money may not be there when you need it.