What does it take to build a strong financial foundation? What advice would David give those early on in their financial life?
(Click the featured times below to jump forward in the episode)
What is your financial foundation? Every financial house needs a strong foundation. Whether you are just starting out or already into retirement, you want a firm and healthy foundation. On today’s episode of Cover Your Assets KC, David talks about the five keys you’ll want to build your financial base.
Do you have an emergency fund? Everyone needs an emergency fund for the inevitable and unexpected. Do you have a good handle on your checking and savings account? You’ll likely want to use your savings account for your emergency fund. How many bounced checks do you have each year? Make sure to have control over both your checking and savings accounts.
Are you using your workplace retirement account? This serves as an automatic savings vehicle. Does your company offer a match? Are you taking advantage of it? Don’t leave free money on the table! The earlier you start saving, the better off you’ll be. Instead of trying to time the market, focus on time in the market. If you don’t have a workplace retirement account, what options do you have? What rules should you know ahead of time? Have you done a rollover IRA for past workplace accounts?
Do you have life insurance? What kind should you buy and what purpose does it serve? Who needs it most? David talks about single individuals, those married with children, and people married without children to help you determine why you should get life insurance. How much coverage do you need?
Do you have a taxable brokerage account? When should you contribute to this and when should you take money out? This is for your over-and-above retirement savings and provides some flexibility throughout your life. As you’re working and saving, you may want to have a taxable brokerage account that will pay you dividends for your financial plan many, many years in the future.
Listen to the entire episode or click ahead to a particular foundational key using the timestamps below.
[1:29] – Have total control of your checking and savings accounts.
[4:50] – Do you have a workplace retirement account?
[8:44] – If no workplace retirement account, do you still have a retirement account?
[11:28] – Make sure you have life insurance.
[17:56] – Should you have a taxable brokerage account?
“There’s an old saying in my business: ‘Time in the market is more important than timing the market.’ All that means is, especially in your 20s, 30s, and early 40s, don’t get worried about whether the market is up or down.”
– David Dickens
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