Retirement Planning

Are You Keeping Your Retirement Savings Out of Reach?

You won't be able to achieve your retirement without careful planning and saving. Be sure the money you've set aside for a comfortable retirement is safely guarded. To be sure that retirement isn't out of reach, perhaps it's best to keep your savings out of reach. 

 

Protect Your Savings

Nobody said saving for retirement was going to be easy. Economic downturns, increased life expectancies, and rising health care costs now mean that you need to save even more so that your retirement nest egg stretches further. This is why it's so important to keep your hard-earned retirement savings out of reach.

We get the fact that life happens. An unexpected medical expense, a sudden disability or a major home repair may have you eyeing your retirement savings as an easy fix for getting your hands on the money that you need. But the fact is you shouldn't look at what you've saved for retirement as an easy solution to life's financial emergencies.

Set up barriers to protect your savings!

If the mere fact that borrowing from your savings will leave you with less to live on in retirement isn't enough of a deterrent, then maybe the many penalties and fees for tapping into your retirement account will. Stashing money away in most retirement accounts can be a good barrier to protect your savings because of the imposed penalties for early withdrawals. If you can, try to funnel more of your money into your retirement accounts as opposed to a money market or traditional savings account (where it can be easy to get to).

Another way to safeguard your retirement savings is to establish an emergency fund. So in the event you have an unexpected expense such as a house or vehicle repair, you'll have access to readily available funds without having to tap into your retirement fund. The key concept for establishing an emergency fund is to prevent spending a dime of your retirement money until you have actually retired.

The bottom line is that you won't be able to achieve your retirement without careful planning and saving. So when life throws you curve balls, the money you've set aside for a comfortable retirement shouldn't be your go-to source.

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All Learning Center articles are general summaries that can be used when considering your financial future at various life stages. The information presented is for educational purposes and is meant to supplement other information specific to your situation. It is not intended as investment advice and does not necessarily represent the opinion of Protective Life or its subsidiaries.

Learning Center articles may describe services and financial products not offered by Protective Life or its subsidiaries. Descriptions of financial products contained in Learning Center articles are not intended to represent those offered by Protective Life or its subsidiaries.

Neither Protective Life nor its representatives offer legal or tax advice. We encourage you to consult with your financial adviser and legal or tax adviser regarding your individual situations before making investment, social security, retirement planning, and tax‐related decisions. For information about Protective Life and its products and services, visit www.protective.com.

Companies and organizations linked from Learning Center articles have no affiliation with Protective Life or its subsidiaries.

Retirement Rules of Thumb

Saving for retirement isn't easy no matter whose rules you follow. And when emergencies pop-up, you may be all too quick in reaching for your retirement savings for relief. This article provides a few rules of thumb when it comes to how to avoid using your retirement savings for a quick financial fix. For more information, visit the Protective Life Learning Center.

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