Stay Ahead of a Government Shutdown and Learn How to Invest Extra Money Wisely

Learn how to prepare for a government shutdown and where to put $600 a month after building your emergency fund.

What happens in a federal government shutdown? Where should you put $600/month after funding an emergency cushion? Hosts Sean Pyles and Elizabeth Ayoola discuss the looming shutdown before answering a listener’s question about where to allocate their extra income. They begin with senior news writer Anna Helhoski, breaking down how a lapse in government funding could affect benefits, travel, parks, mail, and taxes, and how to keep your own plan steady.

Then, Elizabeth and Sean answer a listener’s question about how to think about allocating $600/month. They discuss automating IRA/solo 401(k)/SEP IRA contributions, using diversified index or mutual funds and a taxable brokerage, balancing a home down payment with retirement via time horizons and DTI/credit score, and what to look for in funds. They also explore how habit-building and automation can help you grow retirement savings while still working toward a down payment.

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Are you on track to save enough for retirement? Use NerdWallet’s free calculator to check your progress, see how much retirement income you'll have and estimate how much more you should save: https://www.nerdwallet.com/calculator/retirement-calculator 

Want us to review your budget? Fill out this form — completely anonymously if you want — and we might feature your budget in a future segment! https://docs.google.com/forms/d/e/1FAIpQLScK53yAufsc4v5UpghhVfxtk2MoyooHzlSIRBnRxUPl3hKBig/viewform?usp=header

In their conversation, the Nerds discuss: Social Security during shutdown, TSA delays shutdown, Medicare during shutdown, Medicaid during shutdown, WIC benefits shutdown, IRS refund delays, FAFSA processing delay, federal employees furlough, furloughed vs essential workers, continuing resolution, national park closures shutdown, food safety inspections shutdown, EPA inspections shutdown, FDA inspections shutdown, NIH grants shutdown, unemployment benefits shutdown, debt-to-income ratio mortgage, mortgage approval process, credit score mortgage requirement, down payment savings strategy, closing costs when buying a home, emergency savings for home repairs, retirement calculator, 15 percent retirement savings rule, ETF vs mutual fund, S&P 500 index fund, expense ratio explained, index fund performance history, index fund tracking error, taxable brokerage account basics, diversification in investing, automate retirement contributions, solo 401k contribution limit, and SEP IRA contribution limit.

To send the Nerds your money questions, call or text the Nerd hotline at 901-730-6373 or email podcast@nerdwallet.com.

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