Bobbi Rebell, Founder and CEO of Financial Wellness Strategies, joins TheStreet to explain how there's more than one wya to save for retirement.
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00:00So what are some of the most powerful financial habits other than that one that you'd recommend everyone adopt?
00:08Well, it's really important
00:09You know
00:09We watch so many gyrations of the stock market it can be really hard to stick with it when we see the market
00:15Dive one day and we're like, oh my goodness. Oh my goodness
00:18So I want people to keep up those automatic contributions in your 401ks
00:23Make sure that you put away as much as you can when you're allowed if you can afford it
00:27So if you turn 50, you can contribute more and make sure you step it up, right?
00:31Make sure that you're paying attention to things like the taxes the fees that are involved and so on
00:36So you want to pay strict attention to that?
00:38But don't get obsessed with the day-to-day play the long game for sure
00:43The other thing I want to remind people of and we were talking about how things have changed
00:47You know, we we've become better at saving in retirement vehicles
00:50And in fact now most jobs when you sign up, they will automatically enroll you in a 401k
00:56These are good things
00:57but one of the struggles people have been having and one of the reasons we're seeing a trend where people are actually taking more money
01:03Out of 401ks even if they incur a penalty and we do have some new
01:07Provisions where you can take out money out of a foreign K 401k without a penalty
01:12The reason is that that's where all the money is right when people have struggles. Where's my money?
01:18Well, it's all locked up in these retirement accounts
01:20Remember that while you always want to get the advantages the tax advantages and you want to get certainly the matching money
01:26You can save for retirement
01:28Anywhere you can save for retirement diversified in
01:32CDs, which you may want to lock in if you think rates are going down
01:35By the way, you may save retirement just in a brokerage account that you invest
01:38It doesn't all have to be in an account
01:41That would have penalties because you do want to have that flexibility if you have a short-term
01:45Emergency that you can get to the money without a penalty
01:48And so it's important to diversify
01:50In other words in terms of what you're you have available to you a long-term meaning after you retire versus medium and short term
01:56Don't put it all in retirement money