Ways to diversify saving for retirement

Bobbi Rebell, Founder and CEO of Financial Wellness Strategies, joins TheStreet to explain how there's more than one wya to save for retirement.

Transcript

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