Is Inflation Eroding Your Savings? The Secret to Protecting Your Wealth | SDIRA | Equity Trust

[@damon-burton]

This is a great explanation of how tax-advantaged accounts can help combat inflation. It's clear that these accounts offer significant long-term benefits. I'm curious to know how you balance the immediate need for liquidity with the long-term benefits of tax-advantaged investing. Are there any strategies for optimizing your asset allocation to meet both short-term and long-term financial goals? Thanks for sharing.

[@equitytrustcompany]

Certainly, balancing short-term financial needs, with long-term benefits is necessary. With respect to contributing to retirement accounts, such as IRA or 401(k) accounts, we find many individuals are afraid they lose all liquidity when doing so. You will find, although there is a 10% penalty when distributing funds under the age of 59 1/2, there is nothing that would prevent someone from doing so in the event of a liquidity emergency. Additionally, due to financial hardships, and some other reasons, there is a possibility of meeting an exception to the 10% premature withdrawal penalty. In other words, saving in a retirement account should not cause a liquidity concern, unless you have no other cash in checking or savings to pay for day-to-day bills and other needs.

[@damon-burton]

@@equitytrustcompany Thanks for breaking down those options! It’s reassuring to know that retirement accounts still allow for liquidity options if needed, despite the penalties for early withdrawals. Having a mix of short-term accessible funds alongside tax-advantaged accounts definitely seems wise for a balanced strategy. Great insights. Thanks for sharing.

[@equitytrustcompany]

Glad we could help, Damon. If you need any further assistance, feel free to drop another comment or consider scheduling a free consultation with one of our IRA Counselors here: eqtytrst.co/consultation

[@damon-burton]

@@equitytrustcompany Thanks again. Keep it up.