In the world of retirement strategizing, the focus tends to be on 401(k)s, IRAs, pensions, or other retirement investment accounts. But that doesn’t mean you should forget about the traditional savings account.
Savings accounts can have many uses, but for starters, it’s a great place to stash cash for emergency situations. Financial experts recommend keeping 3 to 6 months’ worth of money in a savings account to cover emergency expenses. Even if you have no foreseeable expenses, there is no way to predict the future, so it’s not impossible that you might need cash on hand to cover an expense.
In addition, savings accounts can be a place to store money for large expenses such as a down payment on a home, buying a car, spending on hobbies, or taking a vacation. Even if there are no foreseeable expenses in the future, your money in these accounts earns interest and can grow over time.
You might be wondering, “I have a 401(k) and an IRA. Why do I need a savings account as well?”
When it comes to your savings, different accounts have different uses. If all you have for savings is in retirement accounts, your withdrawals from those accounts could be subject to an early withdrawal fee if you need it for an emergency expense.
The bottom line is that savings accounts can provide you with a place to keep cash for an emergency expense or a planned expense you’re saving up for. And as a bonus, the cash you keep there has the potential to earn interest.
If you have questions about the savings and investment vehicles that make up your financial picture, contact us at (540) 720-5656 to get started with a financial advisor.
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Amy Anderson joined the ILG Financial team in 2023 as the client relations coordinator. Her responsibilities include scheduling of appointments, annual check-up notifications, and annuity and required minimum distribution assistance. She is a graduate of Harding University with a degree in Computer Information Systems. Amy and her husband have two children and she enjoys reading, crocheting, music and spending time with her family.
Chase Lopez joined the ILG Financial team in 2020 as an advisor. Chase is a 2016 James Madison University graduate with a degree in management. Chase has been trained under the tutelage of Dave Lopez, who is not only the founder and managing member of ILG Financial, but also is Chase’s uncle and godfather. He also enjoys working alongside his cousin, Megan, who is Dave’s daughter. Chase, as a fiduciary, believes in putting his clients interests first, and building out plans for his clients where they can have a happy and fruitful retirement. He married his beautiful wife in February 2022 and both use most of their free time chasing around their little pup, Aurora.
Jessica Carson joined the ILG Financial team in 2018 as an agent. Jessica and her husband have four children, two dogs, 3 barn cats, 5 chickens, and three parakeets. She indeed loves her children and pets! When not at work, Jessica enjoys playing the piano and cello as well as traveling and spending time outside with her family, hiking, fishing, and boating.
Terri Center joined the ILG Financial team in 2019 as client services manager. She handles client records, application processing, and gathering information to provide a professional and friendly experience with all of our clients. Terri is a graduate of Oakland University. She is married and has two children. She enjoys hiking, family time, and puzzle challenging video games. She also likes to share her creativity in her canvas paintings and sewing projects.
Megan Jones joined the ILG Financial team in 2020 as marketing director. Megan and her husband live in Fredericksburg, VA with their German Short Haired Pointer, Gus. Megan is a graduate of Longwood University and holds a degree in communications. Megan is the oldest of Dave Lopez’s three children and not only enjoys working alongside her father, but also with her cousin, Chase, who joined the ILG Financial team in 2020 as an advisor. When not at work, Megan enjoys sitting on the back porch with family and friends enjoying food and music.