Saving for a rainy day

As workers age, they tend to increase emergency reserves

The best laid plans frequently run into some road blocks. As you go through life, stuff happens. When that stuff happens (car issues, house repair, accident/injury, etc.) you want to be able to soften the blow by maintaining an emergency reserve. This is cash that can easily be accessed in those difficult times.

As retirement plan advisors, we love to see aggressive savers. These are the people who save early & often and leave that money alone in good times and bad. To be able to do this however, you want to make sure you can weather any stormy conditions. An emergency reserve can go a long way towards preventing you from having to dip into long term savings like 401Ks if something doesn't go according to plan. If you have the personality that spends it if they see it, it can make sense to open up an account that is separated from your daily checking account and is just a bit harder to touch (so not for vacations for example). So save early & save often, but have a back up plan!