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-- to retirement.
Charles Schwab Vista -- checklists for folks planning for retirement there.
Even those already in retirement it's an important tool to make sure you're set financially with us now Charles -- -- -- holiday with an exclusive look at that -- Katherine welcome to show.
So tell me what should be the priorities here.
So there's multiple priorities -- that folks are working on but the first.
And specifically I would tell people.
You need to be saving enough in that company planned to take full advantage.
Of any match that your employer is putting in there on your behalf.
Get the free money in other words what comes right Q3 and four what do you like lower down on the list which should be the priority is.
Okay 23 and for a number two is payoff that high interest rate credit card debt it gets a lot of people in trouble.
And I follow that up with an emergency savings -- it's really -- all.
That you've got that set in place and I would recommend anywhere from.
83 to six months living expenses.
You know when I look at how many people just last hour here in 2000 -- -- Took money out of their 401K plan to paper basic living expenses while the percent might surprise -- it's 34% of people do that.
You know you also recommend that needed tap that for a one case you were just saying for a first time home purchase and -- -- sat on your list of priorities because.
-- the Federal Reserve itself says that most people when they retire their biggest store of value their biggest.
Want the cash is really in -- house that's where Americans put their dollars.
Right that one might surprise you the first four focused on retirement.
But five and six talk about saving for your child's education and saving for a down payment on -- house.
And we put together these principles we were really looking at how do you optimize your savings.
For the best return on an investment and with that in mind college savings actually comes before saving for a down payment on -- house while.
I'm surprised by that.
I always think you can see good save for retirement.
But you can't get out and -- in -- your retirement but your kids -- should save for their own college education I we need a whole rethink on that whole topic but.
You know you've got some interesting stuff -- I thought this was really -- -- about timing investments.
We build a full screen out of this.
Every thinks you know home perfectly time the market it'll it'll work out and if you do that.
You'll make some 184000.
Dollars but if you invested the same time each and every year like clockwork you'll make -- 171000.
Bad timing a 149000.
If you stay in cash and act -- I can't say I think this is critical because I think so many -- our viewers have done this.
Dollars talking with a little bit about that.
Right we've seen too far too much of that the last few years people just sitting on the sideline and then.
Trying to wait for that for that best day but what's most important really is that consistent and strategy using dollar cost averaging.
You're you know you're out numbers -- -- seem to pan out and show that that's where you're gonna have the best results.
It's impossible to time the market over the long term trying to find the best day to buy -- -- and we really recommend and a long term approach where you're investing on a consistent -- that makes perfect sense and one more quick question I wanna get to -- that -- talked about this -- If you have a short term goal let's say you -- -- buy a house -- when a down payment what's the best place to -- that money to invest that money.
Right well if if it's a short term goal you want to make sure that you're investing in something where you have access to it when you need it right particularly important emergency savings fund.
If it's something that's.
-- -- one to three year bulk.
You wanna look for.
Maybe a CD where would you put it.
Probably would be a great example there was the word to returns were better there Catherine thanks for coming on tonight great to see -- think you know.
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