Having an arbitrary amount of money on hand is not a smart way to plan for emergencies. Always stick with a safe money goal that is relevant to you and your situation.

Whether you’re on your own or supporting a family, it’s a good idea to have at least 6 months of emergency reserves around. For people who change jobs frequently I would recommend you increase this amount to a year’s worth of income. So how do you know how much safe money you really need and how does this amount change as you approach retirement? Other topics include:

• How incorporating saves on FICA taxes, but limits your ability to save for retirement
• Are Roth IRA’s useful if you’re over the 15% tax bracket?
• Self directed 401k vs. SEP IRA –which is a better way to defer taxes

 

 

Email your money question to [e-mail] , or call the show at 1-800-516-1220 on Tuesday's and Wednesday's from 6:00-7:00 a.m. (PDT)

 

Call 1-888-762-2423 for Wealth Management and Financial Planning services or visit www.NewFocusFinancial.com.