Brett Tharp is a Financial Planning Education Consultant at eMoney Advisor where he is a primary contributor to internal and external financial planning education programs. In this role, Brett collaborates with colleagues in the Financial Planning Group and other internal teams to maintain and enhance learning programs.
Individuals should be prepared to pay for essential or non-discretionary expenses out-of-pocket. Temporary lodging or shelter, fuel, food, water and necessary medications fall into this category. This will differ for each person depending on their level of preparedness or perception of how likely a catastrophic event might be.
It’s difficult to confront your weaknesses, and oftentimes individuals ignore their bad financial habits because they may fear being judged. According to a 2019 eMoney survey, 57% of U.S. adults purposely avoid talking about personal finances with their friends. Nearly half (43%) report feeling stressed, embarrassed or confused when talking about their personal finances, and 20% never talk about money with other people.
It’s important for retirees to understand inflation risk because it can dramatically impact their ability to maintain their desired lifestyle throughout retirement.