Catch-up contributions are a tricky area. For households behind on their savings, these can be a potentially game-changing way to build retirement wealth. But, they require having that extra $31,000 on hand to begin with. If you want to start accelerating your retirement savings, here’s how you can plan for making the most of catch-up contributions.
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Keep an emergency fund on hand in case you run into unexpected expenses. An emergency fund should be liquid — in an account that isn’t at risk of significant fluctuation like the stock market. The tradeoff is that the value of liquid cash can be eroded by inflation. But a high-interest account allows you to earn compound interest. Compare savings accounts from these banks.
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