-: One of the most important things I
talk to all perspective clients about
is having an emergency savings fund.
And that emergency fund should be somewhere
between three and six months' worth of your living expenses.
And that's to cover you in case you lose a job
or you're between jobs or you have an illness.
It's to have that buffer.
It should not be invested in the markets.
It should be in a boring old savings account.
Yeah, sure, try to find the highest rate you can get,
but it's got to be safe and you've got to be able
to get to it quickly.
So many times we get people that they're starting
to make a few dollars,
they've heard about the next great booming investment,
and they want to put all their money in.
We strongly recommend that they don't.
For young people, emergency savings.
Once you're able to, I think the one almost no brainer
for young people currently is a Roth IRA
that's invested in a diverse set of mutual funds
or index funds.
I think those start as a great foundation.
When your employer offers a 401K,
especially if they offer a match,
at least put in up to the matching amount
and take full advantage of that free money.