4 Ways to Keep Your Retirement Savings On Track In Your 30s
glamour.comThe Broke and Beautiful Life and founder of . That means tapping into your 401K for a real estate down payment or to pay for your kids’ education is almost always a bad move. “It’s important to consider all the goals you have between now and retirement, and what you’ll need to fund them.” For shorter-term goals—around five years or less—“you’re probably better served keeping your money accessible in a vehicle like a high-yield savings account where it won’t be subject to the short-term ups and downs of the market,” she says.
For goals that are more than five years out, but well before retirement, you may consider investing in some non-retirement accounts, she says, so that you can hopefully grow your money without it being inaccessible.
Ideally, each specific life goal will have its own account. “For example, your retirement goals are in your 401(k) and IRA accounts.
Kids’ college savings are in a 529 account,” says Paco De Leon, author of Finance for the People: Getting a Grip on Your Finances. “Your emergency fund is in a high-yield money market savings account.
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