Mark Kohler explains the order to set up your retirement accounts. Start with an emergency fund covering one to three months of core expenses before investing, so you don't raid your retirement savings when unexpected costs hit.
I love to cook. I'm in the kitchen every night. It relaxes me. And I'll tell you, you can have the right ingredient for a dish, but if you put it in in the wrong order, it's not going to turn out like the dish you hope for. Retirement money is the same. Which brings us the order of investing. Here's the exact sequence I'd follow and why each step comes where it does. First, a starter cushion, an emergency account, rainy day fund. Before I invested aggressively or at all, I'd get 1 month of core expenses in cash, then build toward 3 to 6 months. Why first? Well, it's because every flat tire or medical bill forces you to raid your savings or run up credit cards. Your plans reset to zero. Your emergency fund isn't also your retirement plan. It protects you from stuff happening. Boring beats broken. And frankly, it's also there for immediate opportunities, not just immediate emergencies. We want to have that cushion available for a variety of reasons.
The secret to managing your family's future #financialfreedom #estateplanning #shorts
Moving Property to an LLC: What They Don't Tell You #realestate #investing #tips
