In recent months, we’ve all felt the loss of some type of freedom, such as being able to travel or engage in social gatherings. Still, as we prepare to observe Independence Day, we appreciate the liberties we still have in this country. Making the right moves may also help you achieve your financial independence.
For starters, try to build an emergency fund containing up to six months’ worth of living expenses, with the money kept in a liquid, low-risk account.
Also, contribute as much as you can afford to your 401(k) and IRA.
You can also protect your financial independence by getting some type of long-term care insurance. Without this coverage, you could spend hundreds of thousands of dollars if you ever need an extended stay in a nursing home or some home health care services.
Finally, when you retire, you need to carefully manage your withdrawals from your retirement accounts. If you withdraw too much each year, you might risk outliving your resources.