What the downturn should have taught us:
- Get a thorough grasp of you personal situation (cash reserves, debt and current debt and retirement contribution levels—that should guide decision making).
- Get cash flow. Know how much is coming in and going out.
- Develop a short term, intermediate & long term game plan.
- Build a healthy emergency fund:
- 6-12 months for workers
- 12-24 months for retirees
- Don’t sell assets and/or invade retirement accounts
- Keep making retirement contributions.
- Need money in the next year? Keep it in a safe place like a checking, savings or money market account--short term CD or bond.
Check out this blog from Jill Schlesinger CFP®: