The fallout of the COVID-19 pandemic has made the need for a healthy savings account clearer than ever. Even before the pandemic, the U.S. Federal Reserve estimated that nearly 40 percent of Americans didn't have enough set aside to cover an unplanned $400 expense.1 But how can you set aside funds for a rainy day without stretching your budget beyond its limits?
As you get older and closer to retirement, your financial practices need to shift slightly as you transition from working and saving to relying on your nest egg. As you approach this stage of your life, you need to take steps to protect your wealth. Keep these tips in mind.
1. Shift Toward More Conservative Investments
The CARES Act has offered new relief for RMD Rollover as a result of the economic problems facing the country during the global coronavirus pandemic. Under the new relief, anyone who took the required minimum distribution from their retirement during the 2020 tax year may now roll their money back into their retirement plan as long as the transfer is completed by August 31st.