YOUR MONEY


With COVID hopefully behind us, it’s time to plan for the next big economic shock. ::


Crisis-Proof Your Pocketbook BY KATHRYN ANNE STEWART T


wo years after covid-19 was fi rst identifi ed, Wall Street may have bounced back, but nothing else


seems quite “normal” yet. Millions are still working from


home and many businesses remain shuttered. In the wake of the pandemic, one


important lesson we can all learn is this: It’s never too early to start planning ahead to be ready for the next economic shock that comes our way.


“It’s the fi nancial equivalent of


looking both ways before you cross the street and buckling your seatbelt,” says Greg McBride, chief fi nancial analyst at Bankrate. “It doesn’t guarantee 100% safety,


but it sure puts the odds in your favor.” Here are four money priorities you should take action on now:


AN EMERGENCY FUND “Nothing helps you sleep better at


74 NEWSMAX MAXLIFE | MAY 2022


night than knowing you have money tucked away for unplanned expenses,” McBride says.


How much? Three to six months of expenses is typical. Aim for six months if you have a family or earn variable income.


If your employment situation is dicey, you may want to save more. If you’re a single person with a modest lifestyle, three months may suffi ce. If you’re close to


retirement, your


calculations change. Rather than months of expenses, McBride says, “Start to look at it through the lens of how many years of withdrawal from your savings account your fund is equivalent to.” In a crisis


situation, your retirement


investments may lose


some value, and you won’t want to be pulling money from those accounts until they have recovered.


How to save: Accumulating


thousands of dollars doesn’t happen by accident, or overnight. Eliminate any temptation, indecision, or


forgetfulness by setting up a regular auto-transfer into your emergency fund account immediately. Where to stash it:


Keep your emergency fund separate from your day-to-day savings and checking accounts — ideally in a separate bank, too. “Out of sight, out of mind is usually the best rule of thumb,” says Michael Landsberg, CPA, PFS, a member of the American


Institute of Certifi ed Public Accountants’ Financial Literacy Commission.


As for the best type


UMBRELLA/LUCADP/SHUTTERSTOCK / FUND/AMENIC181/SHUTTERSTOCK


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100