What's the best way to save for retirement where I won't spend the money saved for unexpected emergencies?

Asked by Alec

1 Answer

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Answered by Stacy Marcus, CDFA™ CFEI™ in New York, NY
Investing for retirement is an important goal, however, having an emergency fund is a priority. You should first have sufficient funds which are liquid - do not require the selling of stocks or mutual funds, set aside to cover emergencies. After you establish your Emergency Fund you can start to invest for the long-term without having to worry you will need to liquidate your investments for an emergency at a time when the value is depressed - as we are seeking in the current market environment. The investments you select should match your time horizon = when do you expect to use the funds and risk profile.

Emergency Fund
Short-Term Financial Needs & Goals (you need the money in less than 3 years)
Retirement & othe Long-Term Financial Needs & Goals

A good wealth advisor will help you plan how much to save, how much to invest and what types of investments are appropriate given your time horizon and risk tolerance.
| 09.30.15 @ 23:11
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