Citi Personal Wealth Management
Have you given some thought to setting aside money for a financial emergency? Whether it's in case you lose your job, need to replace the furnace or have an unexpected car repair, your goal is to make sure you're covered without going overboard.
Conventional wisdom says it's prudent to have six months of living expenses set aside in a savings account or a money–market. Give some thought to whether you need that much emergency money. Yes, if your job is tenuous and you are the family's sole breadwinner, keeping the full six months may make sense. However, if both you and your spouse work, you may need less, because you could cut back spending and live on a single paycheck if one of you loses your job. A caveat: The smaller emergency fund may not be prudent if there's a risk you could both lose your job at the same time because, say, you work for the same company or in the same industry.
If you've managed to save a moderate amount of money in your accounts, keeping a separate emergency reserve may not be necessary. In addition to tapping taxable accounts for a source of funds in the event of an emergency, other options that you may wish to consider after reviewing the risks, including the risk of loss of compounding, with your tax advisor and others include:
As you ponder how you might cope with a financial emergency, don't just consider where you'll turn for cash. Also look to keep your cost of living under control, including.
Citi). Not all products and services are provided by all affiliates or are available at all locations. CPB personnel are not research analysts, and the information in this Communication is not intended to constitute
research,as that term is defined by applicable regulations. to footnote reference 1
To improve financial aid eligibility for your child, consider these four points.
Review three key steps for helping to protect your family's finances after the loss of a loved one.
Get a better understanding of how a 529 plan works and consider four steps to help make the most of them.
The above content is for informational purposes only and contains a summary of the topic and is not intended to be a comprehensive discussion, including any legal or tax ramifications of the strategies or concepts described herein. These strategies are not guaranteed to succeed or indicate future performance, and they do not necessarily represent the experience of other clients.
This is not an offer to buy or sell any of the securities, insurance products, investments, or other products named.
This material is derived from sources believed to be reliable, but accuracy and completeness are not guaranteed.
Please note that by visiting the URLs or hyperlinks referenced, you will enter another website created, operated and maintained by a different entity.
Citigroupand its affiliates do not provide tax or legal advice. To the extent that this material or any attachment concerns tax matters, it is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Any such taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.
Citi Personal Wealth Management is a business of Citigroup
CGMI), member . Citigroup Life Agency (
) offers insurance products. In California, does business as Citigroup Life Insurance Agency, (license number 0G56746). Citibank, CGMI, and are affiliated companies under the common control of Citigroup
© CitigroupCiti, Citi and Arc Design and other marks used herein are service marks of Citigroup Inc. or its affiliates, used and registered throughout the world. 8/19