Retirement Starts Today 10 Sources of Emergency Cash, Ranked From Best to Worst
May 26, 2025
What do you do when funds run low during a crisis? Discover a ranked list of ten emergency cash sources, from the best options like emergency funds to the last-resort strategies like credit cards. Learn the pros and cons of each option and why understanding them is vital for financial stability. Explore investment strategies and how to manage withdrawals from retirement accounts. Being prepared can help you make calm, informed decisions when unexpected expenses arise. A solid plan ensures you're ready for any curveball life throws your way!
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Emergency Fund Setup In Retirement
- Keep three to six months of your planned retirement withdrawals immediately accessible in a local bank or high-yield savings account.
- Hold an additional one to two years of planned withdrawals in cash or short-term securities within your retirement accounts.
Use Taxable Accounts After Cash
- If your emergency fund is insufficient, consider selling low-risk assets in taxable accounts, especially short or intermediate-term bonds.
- Use tax strategies like wash sales to offset gains and losses and minimize tax consequences.
Access Roth IRA Contributions
- You can withdraw your original Roth IRA contributions anytime without taxes or penalties, offering an emergency cash source.
- Use Roth IRA contributions only if necessary, as these funds are ideally for long-term retirement growth.
