Opinion: How To Protect Your Money — At Every Age
Opinion: How To Protect Your Money — At Every Age
Outside the Box Published: July 29, 2020 By Stephen Augstell
Learning from mistakes in uncertain times
Growing up, my friend’s mom always gave me good advice. When things went terribly wrong, Mrs. Brown would say, “It’s a learning experience, Stephen.” I realized that the experience, however painful, could serve me well in the end.
80% of older Americans can't afford to retire - COVID-19 isn't helping The fallout of COVID-19 has yet to be fully measured, but it’s fair to say that most of us have been impacted in some way — some more than others. However, what we learn from challenging occurrences can help us manage risks going forward.
In these uncertain times, the risks you face depend on where you are along your course toward reaching your goals. Whether you’re just starting out and in your 20s, or you are older and further along your path, consider the following measures to help mitigate the damage of the next unforeseeable event.
In your 20s
• Protect your FICO score with a line of credit attached to your checking account. Overdrafts are costly and can lead to all sorts of credit problems down the road. A low FICO score can severely limit your ability to fully leverage your income.
• Open a Health Savings Account. You can qualify if you have a high deductible health insurance plan. Contributions are tax deductible and growth in the account is tax-free if withdrawals are used for qualified medical expenses.
• Build your budget. Know how much you need to survive.
• Keep an emergency fund to pay for an unexpected expense or to buy you the time necessary to secure your next job.
•Take full advantage of work-related benefits such as matching contributions within a company sponsored retirement plan. It’s guaranteed money so you can’t go wrong.
• Start a Roth IRA. It’s less arduous than a traditional IRA and investment growth is income tax-free.
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