Important Considerations for Retirement Savings Accounts
Friday, 10 May 2024, 22:00
Retirees' Savings Account: How Much Money Do You Really Need?
If retirement is on the horizon, it's crucial to plan for your savings. It's recommended to keep a year's worth of predictable expenses in the bank to protect your investments. Find out why building a cash cushion is essential to riding out market fluctuations.
More than a traditional emergency fund
- Emergency Fund: Usually covers three to six months' worth of expenses for those still working.
- Retirees: Should target a year's worth of expenses to ensure financial stability.
Take advantage of today's higher rates
- High-yield savings accounts: Offering 4% or higher APY, making them ideal for retirement planning.
- Certificates of deposit: Lock in high rates, but require leaving money untouched for a set period.
- Money market accounts: Combining higher interest rates with easy accessibility.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.